Category Archives: Reseller Hosting

95th Percentile Methodology: What It Is, How It Works

A term pertaining to colocation bandwidth that you may have heard is the 95th Percentile Monitoring – also known as the 95% Method. So what does the term mean? To illustrate, we will look at a monthly graph of an Internet uplink port:

95thPercentileGraph

As you can see, this graph, has the data on the vertical axis, and the pass of time on the horizontal axis. About five weeks’ worth of data is shown here. Please notice that the sample rate has been consolidated to two-hour intervals in this graph – using smaller intervals does not make a statistically significant difference when graphing data over a larger time span.

So, how does a colocation service provider like us compute bandwidth usage for the month using this data? You might assume that it would be fair to add the Average In and Average Out values (Internet traffic travels in both directions) – a total of 36.3 Mbps in this case – and declare that to be the official usage for the month shown. In fact, many other data centers will do just that. However, there is another way: the 95th Percentile Methodology. Here is how it works:

  • A log of 30-days-worth of traffic samples at default settings (typically every 5 minutes) are accumulated;
  • The log is sorted in descending order, which places the highest traffic peaks at the top;
  • The top five percent of the log is discarded;
  • The value of the largest remaining peak becomes the effective bandwidth usage value for the month.

The advantage of the 95th Percentile billing method is that, over the course of a 30-day ‘month’ you can have up to 36 hours of peak traffic and that number is calculated only for the direction of greater flow, making the other direction free (as opposed to the average in + the average out method). In the example of the monthly graph above, the actual 95th Percentile traffic number for that data is 25.7 Mbps – some 10.6 Mbps lower than using the ‘sum of the averages’ method.

As you can see, the 95th Percentile Monitoring can be quite advantageous when acquiring bandwidth.

However, there is one exception to this. That would be in situations where there is normally very little bandwidth activity, but periodically large bursts of high traffic activity that occurs. The 95th Percentile could potentially work against you in the event that the cumulative bursts added up to more than 36 hours in the billing period.

In practice this situation is uncommon; the best way to address this is to try to know (or predict) your usage profile and order service accordingly.

Reselling Hosting & Other Services or Products … Plus Some Jokes

 

authorized reseller

Since one of the relationships that we offer at Superb Internet is our reseller program, I thought it might make sense to take a look at reselling Internet-wide. By Internet-wide, I mean the part of the Web commonly considered its business side: I will skip over popular reseller programs such as Justin Bieber fan pages, which resell the awesomeness of the pop star.

First, let’s take a look at reselling as a point of focus and how to prepare for it. What does it take to establish a plan, figure out what your needs are, and conduct appropriate research? Well, for one, it takes forethought, which we will elaborate. The other thing it takes, though, is gumption: talk to your grandparents if you don’t know what that is. They have some, and they might be willing to let you borrow some to start your business.

Second, though reselling for us and many companies can certainly be one piece of a larger business, let’s take a look at how an entire business can be focused on reselling. We will go through how to establish a business that sells products through wholesalers and distributors. Of course, you can also sell services virtually, but it’s good to get a sense of that broad picture.

Finally, we will look at a couple of excerpts from my forthcoming book Kids Resell the Darndest Things, because they really, really do.

Reselling Preparations

Here is a step-to-step guide for preparing to resell:

  1. The Plan – Do you want reselling to be the entire focus of your business (or your income, if your website is entrepreneurial), or do you want it to be a side project? Figure out how much time will need to be devoted. Knowing what the outlook is on time will give you a better sense of how to choose resellers that fit your time needs. Make sure you account for “me time” as well, which should never go over 2 minutes and 15 seconds per day. Finally, determine the investment – how much financing you need to put in to get the site operative and successful. Strong reseller programs like ours make the process simple and fast.
  2. The Needs – Figure out exactly what you’re going to need to get the reseller program up and running. Will you need to buy new software, for instance, to make the process more efficient? Reselling obviously get significantly more complicated when you are dealing in products, because then you’ll need a scale, packing supplies, and a large stuffed moose to watch over you and keep you motivated.
  3. The Research – Determine the demand: you want a product or service that sells well so you know income will be coming in. Researching the market can give you a sense of what is ideal to sell. As we know, Internet hosting is a massive industry, so you could do that with us. You can also sell gumballs one at a time – very popular, because no one ever wants more than one. They’re just too sweet.

Kids Resell the Darndest Things – Excerpt #1

Four-year-old Russell Mills of Bismarck, North Dakota, started a reseller program selling sticks. His only sale so far has been to his mommy, who bought four. Please don’t tell him.

Using Wholesalers & Distributors

Let’s now look at what it specifically takes to get a reseller business started buying products from wholesalers and distributors:

  1. The Niche – When you’re looking at reselling, it is often wise to choose a specific niche. Rather than selling many different types of items on your site, you may want to focus on one specific type of product or service. Furthermore, you want to make sure that the market is not oversaturated, or it will get your hands wet when you touch it, and you’ll ruin your computer.
  2. The Application – Go straight to the company you are considering and ask them about wholesale pricing, because this information is generally not posted online. You will typically be able to find contact information and a form or application to get started. For wholesale, expect about a 40 percent reduction from retail price and an infinity percent reduction from pricelessness.
  3. The Shipping – Find out about drop shipping, which will mean you don’t need to store the products. Drop shipping also means that you only have to pay once the customer has paid you, a process typically conducted at a distance but that you can also conduct on a street corner, while wearing a disguise.
  4. The Content – Consider informational articles that you’ll want to have on the site. This content will vastly increase your likelihood of making sales. The search engines like information. So does the CIA. Kill two birds with one stone, and make everybody like you for your information.

Kids Resell the Darndest Things – Excerpt #2

Three-year-old Nancy Jones of Providence, Rhode Island, started a reseller program selling ice cubes. No one has bought any of Nancy’s ice cubes yet, because she is an orphan. Please don’t tell her.

Conclusion

That’s a quick look at reselling. Obviously it’s a much broader subject than this. If you think you might want to resell with us, check out our program, and let us know if you have any questions.

by Kent Roberts and Richard Norwood

Tis’ the season

When is discount more than a deal? When that discount helps you make money. Superb.NET already boasts one of the best reseller programs in the industry. With rewards from referrals to graduated discounts that improve with performance. Resellers are even capable of generating up to $200K in revenue per year.

Now with the recent launch of the hosting industry’s first White Label cPanel Reseller Program, you are able to make the money and build your own brand. Superb.NET will do the background work, while you make the sales.  This can apply to any online based business you can think of (see blog post “Money, Money…” to read about a woman that makes $100K walking dogs). Superb.NET program include branded client panel, statements and free billing control panel. You can even add-on services where Superb.NET handles invoicing, unlimited 24/7 support and customer calls.

The best part about White Label cPanel Reseller Hosting; it is now 10% off on Superb.NET. All you need is the promo code RESELLER. How about 10% off to help you make money – a discount that is more than just a deal. Don’t hesitate because tis’ the season, but only until December 31, 2011.