Introduction to Reselling:
Reselling is a new profession practiced by people who know and love the net. People who like hardware and have lots of available funds can set up an ISP or hosting operation themselves. But that is not in everybody's budget or skill set. Resellers have interests that run more toward the relational or sales arena than the technical arena. They may not know (or want to know) how to set up and configure Unix or Windows NT boxes. However, they are often better at locating prospects and selling servers or other web services than the tech guys are. These two types need each other. And the right team makes for good business!

Terms and concepts:
Providers are the technical people. They are sometimes called the Upstream, or Upstream Provider. Capital letters show respect ; ) They have special skills or assets. Their hardware, development, and software investment is usually substantial. They set up networks or software and configure it to do a certain task. Some software is unique to a specific task and is called a web application (like online database applications or credit card processing applications.

Resellers are sales oriented folks who usually have a history of interest in computers and some pretty good Internet skills even if they are not certified webmasters or Perl programmers. They may build a web page to sell their services, or use the provider's templates and just fill in their names. They usually work from their own home or office, not the provider's office. They are independent contractors, and are not on the payroll of the provider. Resellers can learn more about their profession by visiting the new web portal for resellers at www.resellerconnection.com. Information about providers can be found there. Many tips about running a virtual business can be found at ISP Community sites like www.netts.com. Other ways to find providers include search engines, hosting portals, and ISP discussion lists such as those found at www.isp.com.

Prospects and customers are found by cruising the net looking for message boards or discussion lists about topics of interest to potential buyers of the services provided by their upstream. Or they may find them by more traditional means, such as Radio, TV, and Print advertising. Some attend trade shows to sell their services. Web services that can be resold are numerous.

Some services that can be resold are:

• Hosting
• Virtual Storefronts
• Virtual Servers
• Co-Located Servers
• Dedicated Servers
• Dial Up Access (modem banks and radius servers)
• Tech Support for Virtual Dial-Up Access Operations
• Merchant Card Services
• Real Time Credit Card Processing Services
• IP/Fax Gateways
• Telephone Gateways (VOIP)
• Search Engines
• Branded Community Sites (Mailboxes, Calendars, etc)
• Network Operating Centers (NOCs)
• Network Backbones
• Bandwidth (ISDN, T1, T3, OC3, etc.) Connections

How Big is Reselling?
Some reselling is BIG business - going all the way to the top of the Internet Industry. Tier one providers like UUNET resell their network to other really big Internet companies who you might think own their own cable, fiber, switches and modem banks when in fact they do not. In example, MCI sells network bandwidth and switching to other large, household name network providers like GTE, who then resells them to an aggregator who resells them to Virtual ISP's around the globe, who resells them to local access customers. Still, most reselling is done on a smaller scale.

Reselling Relies on Business Basics - Not Rocket Science…
So you are thinking about becoming a Web Reseller? Or perhaps you have already started that journey? You are joining a new breed of Internet professional who focuses on quality of service, service options, and the art of the deal rather than on hardware or software. That's great! A degree in rocket science is not needed. Sarah Kanary, a reseller at www.kanarysweb.com, says, " I use control panel to add pages, users, and pop mailboxes. I don't know how it does it, and I don't want to. It's simple. I am Unix brain dead. I would not know Unix if I saw it. I don't make my money by knowing Unix…" Sarah did spend years with computers as a hobbyist and is able to build web pages even if she doesn't design Internet Applications.

This familiarity with computers and the Internet is what is needed. That plus a desire to succeed, a willingness to work hard, and an ability to build relationships will help you succeed. You will need to design your service mix, create your offering language with claims and pricing, and build relationships with providers. When this has been done, it is natural to help your contacts find the right services or vendors who can help them.

Resellers make things happen by helping people
Many small businesses want to get online but don't know where to start. Left to their own devices it can be impossible for them to sort out the solid claims from the hype. And without understanding claims, there is no way to evaluate prices. Most small businesses who go it alone end up making a decision based on the lowest price or the flashiest sales story. Neither solution usually works well. The reseller makes their living by helping clients determine what services are needed. Then they sell private labeled services from larger companies, or point the client to providers who offer those services. Prices are significantly lower than they would be if the client were using their own limited knowledge of the net to try to go it alone and find quality service. Some resellers do so much volume that they can resell services at below market rates. Some, called aggregators, combine services from several competing providers and resell a bundled plan that is not available from any one provider.

Resellers do their homework to find good providers, because their reputation depends on the providers they choose. The reseller may be a brick and mortar operation, or they may be a virtual company with an office at home and no employees. It does not really matter. But the provider needs to offer high quality and stable services. Both the reseller and the client stake their business on the stability, skills and availability of the provider. Professional resellers usually have found solid companies to partner with - to protect their investment in the client base. If a reseller's provider goes under, the reseller may lose a lot of business that will never return. By taking advantage of the reseller's research, the client gets a more stable provider.

What A Reseller Does
A reseller is a bit of a consultant, a bit of a sales professional, a bit of a researcher, and a bit of a technical assistant. You notice I said technical assistant - not technician. Most providers make it relatively easy to access their equipment and provide a lead or an email address. The actual hardware, software, or service configurations are done by a wizard or script that run after filling in the blanks on a setup wizard or control panel.

If you resell services of another company, they may provide the web page that presents the service or product, and the online store. This may be free or the reseller may be expected to make an investment in this storefront. Resellers may simply be expected to paste provided pages or code into their existing web site and customize it. Some providers offer pre-designed web pages, online support manuals, and other materials the reseller can customize with their own brand name, company name, and contact information. With other providers the reseller is more on his or her own. Profit margins are usually higher for programs where the reseller does more of the work. But if simple is what is wanted, the reseller can make it up on volume. If prior business experience is minimal, maybe a lower margin turnkey provider is more appropriate.

Details, Details...
In future articles we will cover making money in the reselling business by making proper arrangements and getting volume! Additional articles about this and other topics of interest to the web reselling industry will soon be found right here at www.resellerconnection.com. Please visit again. Until then, happy selling!

Copyright 1999 Lonn Dugan, all rights reserved. Published with permission by www.resellerconnection.com. Dugan is a freelance journalist, web and print author, webmaster, portal publisher (www.suntanning.com), web services provider, Virtual ISP, and reseller. If your reseller organizations would like to be featured in a future article, please contact Lonn Dugan at BIG Design, 734-854-4558 for consideration. Dugan is available for consultation, web development, public speaking engagements and consultation.