Editor’s notebook – July 2009

Making money, cutting costs

In tough economic times, these are the two great commandments. Here are two specific business-building strategies you might not have considered.

Making money through reseller Web hosting

Stephen Holford is chief marketing officer at Fasthosts Internet, a company that originated in the U.K. in 1999 and ventured into the U.S. market with success just last year. Specialists in reseller Web hosting, Fasthosts Internet “offers everything users need to create their own reseller hosting brand – and earn a recurring profit on everything they sell,” insists Holford. That “user” just might be a small-to-medium-sized Canadian print shop or design firm. But, how does this service work and what’s the cost?

“As a reseller, private-label Web solutions are purchased from a hosting provider (like Fasthosts) at competitive industry prices,” says Holford. “The reseller [in this case a print shop or designer firm] then re-brands them under his/her own current marketing platform and sells them at for-profit prices to end customers. This is done through [his or her] own website.”

In the case of a print shop, the site might feature specific types of printing services for specific clients (such as, large format, book printing, short-run digital, etc.) using an accessible control panel designed for seamless customer management. For example, Fasthosts recently re-fashioned the control panel specifically for the U.S. market so resellers can monitor their hosting business with ease.

“With low initial costs, resellers get a greater return based on what they charge their customers. An added bonus can come from selling existing, free, off-the-shelf packages – a unique way to achieve as much as 100% profit for a reseller,” Holford adds.

Businesses can also choose what Web solutions they want to offer as hosting resellers. Domains, emails and site builders are just a few.

The other advantage is definitely price.

“With minimal spending up front, this is a manageable business opportunity,” Holford says, “and you can offer your customers more products at their own price points. In other words, resellers can market top-of-the-line Web solutions under their own brand. You can design your own Web packages or customize specific ones for each end customer.”

Clear and up-front pricing is the key, he emphasizes. You need to know exactly what the services cost so you can set prices for your market. Finally, having a background in Web hosting isn’t necessary. Fasthosts, for example, provides its resellers with 24/7 U.S.-based technical and account support by email and by phone. More information: www.Fasthosts.com/resell-hosting.

Cutting costs with “Green IT”

More printers are taking steps to reduce their environmental impact, and that’s great – but at what cost? Well, “Green IT” can lower your costs substantially according to Jeff Lorenz, vice-president at Primus Telecommunications Canada, the largest alternative communications carrier in Canada.

“There are a number of steps businesses can take from an IT perspective not only to reduce their energy use and carbon footprint, but also to increase efficiency, improve operations and save money,” he says.

Lorenz offers the following strategies:

1. Create a “telework” environment. More businesses are allowing employees to work remotely as a way of saving money on office space. But, telecommuting also benefits the environment by reducing the number of cars on the road. “While the concept has been around for some time, the systems supporting it have improved dramatically,” says Lorenz. “Technology can now enable companies to create secure unified communications environments built on a shared, remote infrastructure that supports everything from phone to Web conferencing, and that can expand or contract to meet demand.”

2. Consolidate Server Infrastructure. Many companies still house their temperature-controlled and secured server infrastructure on-site. By centralizing servers in a shared-data centre, you can reduce energy costs and minimize security risks.

3. Go “virtual.” Virtualization, which reduces the number and types of servers by essentially sharing computing resources, significantly reduces power consumption and can save you as much as 75% in related overhead costs.

4. Turn off and unplug your computers at night or put them on standby mode after a specified period of inactivity. You can also save a surprising amount of power by unplugging laptops and other devices and work on battery power until they need to be recharged.
In total, says Lorenz, all these strategies can really add up – to cost savings as well as a cleaner environment. More information: www.primuspbs.ca.