Personally I started my business reselling proxy and reddit services and I want to talk about some of the things I encountered during my journey. Below I'll list the pros and cons of RESELLING and I would like to hear your opinions as well.
Pros
So one of the great things about starting a business as a reseller is if you have no experience at all, you will learn some stuff.
Another thing that I encounter is the cost is generally low so you don't risk much. Think if you want to sell 50 proxies for example you would need to get 50 PHONES, set them up and run them smoothly which is a very tedious work.
Cons
Okay here is the juicy stuff now. I think one of the biggest issues is YOU DON'T HAVE CONTROL OVER THE BUSINESS. Your provider decided to increase the prices? Too bad! Now you need to adjust your prices accordingly. Provider has a problem on the site and orders or product not working? Guess what? You can't sell anything! The point is YOU ARE DEPENDENT ON YOUR PROVIDER.
So since you're dependent on other provider and there might be issues, you might constantly need to change providers until you find the right one. I changed many proxy providers for example and lost some capital and time in the process.
The other thing I would worry is the exit opportunities. Since your business relies to another business, I think it doesn’t give the same level of trust compared to an actual provider when you want to sell your business.
I would like to hear your opinions on reselling as well. Do you thing is it a sustainable business model? What are the pros or cons that you encounter?
Pros
So one of the great things about starting a business as a reseller is if you have no experience at all, you will learn some stuff.
Another thing that I encounter is the cost is generally low so you don't risk much. Think if you want to sell 50 proxies for example you would need to get 50 PHONES, set them up and run them smoothly which is a very tedious work.
Cons
Okay here is the juicy stuff now. I think one of the biggest issues is YOU DON'T HAVE CONTROL OVER THE BUSINESS. Your provider decided to increase the prices? Too bad! Now you need to adjust your prices accordingly. Provider has a problem on the site and orders or product not working? Guess what? You can't sell anything! The point is YOU ARE DEPENDENT ON YOUR PROVIDER.
So since you're dependent on other provider and there might be issues, you might constantly need to change providers until you find the right one. I changed many proxy providers for example and lost some capital and time in the process.
The other thing I would worry is the exit opportunities. Since your business relies to another business, I think it doesn’t give the same level of trust compared to an actual provider when you want to sell your business.
I would like to hear your opinions on reselling as well. Do you thing is it a sustainable business model? What are the pros or cons that you encounter?
