Menu
Internet gain without the pain

Internet gain without the pain

Resellers don't have to make huge infrastructure investments to snare a piece of the Internet pie, according to the boss of one of Australia's biggest Web hosting services.

Lloyd Ernst, general manager of WebCentral, said that resellers can act as a "ghost" Web service provider by reselling his company's hosting services.

"If any reseller is finding its customers looking for a Web host and they want to be involved in the project, they can develop a branded product using our services but with their own logos and any links they want to go with it," he said.

"They can own as little or as much of a customer relationship as they want."

Ernst said that an increase in the number of small and medium enterprises developing e-commerce and Internet strategies meant this market represented a golden opportunity.

"The demand for these sort of services is very strong. People are starting to realise they need to have a proper domain name and e-mail structure," Ernst explained.

Margins for resellers vary from 22-30 per cent and average about 25 per cent, according to Ernst, depending on the size of the deal and the services being offered. The Brisbane-based Web host is enjoying huge success, roaring past the 7000 hosted domains mark during April. It is 51 per cent owned by Ozemail and boasts a farm of over 150 NT servers in Brisbane.It has two 100Mbps links to Telstra and Ozemail, 24-hour maintenance operations and markets a range of e-commerce solutions as well as management and monitoring services.

The company was launched two years ago as an extension of ISP power-Up and, according to Ernst, has doubled in turnover every six months since foundation with forecasts for a tripling in the next half-year.

The two quarters ending December 31 saw revenues exceed $4 million.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Events

Show Comments