Jaiem — Mon, 04 Dec 2000 06:47:51 +0000

Many (if not most) business people don't understand the hosting and design process. If you start saying how you'll do the design but they have to sign up with a host somewhere first you'll confuse them and most likely loose the client.

It's more effort but reselling is the better way to go.

Also, consider setting up a referal agreement with a couple of hosts or other resellers. Sometimes a host gets a client who needs a site and they either can't or just don't build sites. They refer the client to you for the site and you build it on thier server for the client. A "finders fee" is often exchanged for the referal.

Legal issues

MichelleB — Mon, 04 Dec 2000 05:27:34 +0000

Thanks Ted.

I prefer being up front in business dealings. It sure makes life easier.

MichelleB
mrae@primenet.com

Ted Sindzinski — Mon, 04 Dec 2000 05:14:36 +0000

If you tell your client that you'e not providing a service but that you are instead just sending their money to a host then you're not liable.

However, if you dont tell them that you resell and make a promise, then you are responsible for their problems or failure to keep that promise.

It's actually rather simple, hide it and you have to deal with hiding it, tell them and you're in teh clear but not earning a cent.

Legal issues

MichelleB — Mon, 04 Dec 2000 00:39:26 +0000

This is definitely the type of info I need. Do I need to be an actural Reseller for the hosting company or can I claim Reseller by limiting my involvement to signing up the client for hosting without profit?

Any and all advice is NEEDED.

MichelleB
mra@primenet.com

Legalities, legalities, legalities...

Ted Sindzinski — Mon, 04 Dec 2000 00:12:04 +0000

First off, in all my years of design, I have oftne found that getting my clients on a host otehr than one I pick can be great (but it can also be a pain). When a client's site goes down, if someone else hosts it, you can blame them. When email fucks up, you can blame the host. HOWEVER, many hosts will have down time, extra fees, special requirements for cgi and all sorts of stuff that gets in teh way of you, the designer. Therefore it's probably best to find a good host, resell for them and blame internic for any problems

Because you are charging an additional fee for your clients, you are impart liable for their dealings with your host. If it was a straight client-to-host deal, you'd have no part, no profit and no liability. However, when you make a percentage, escpailly if your client is unaware of your reseller status, you are responsible for anything that you promise to offer.

That means if you say 99% uptime, you better have a nice tos to go along with your hosts policy. If you dont want to take any risks, dont charge any additional fees and disclaim yourself as a reseller. If you want the profit, take your host's tos (if they allow) and modify it for your services. Dont make foolish promises like unlimited bandwidth or space, even if your host does.

Legal issues

MichelleB — Sun, 03 Dec 2000 23:52:00 +0000

Thank you Jaiem,

Sounds like good advice. I am very new to this business and there are so many questions.

I develop sites for clients, then sign them up with a host. I am not a reseller. At first I thought that I would charge more for hosting than the host company, but I feel uneasy about that.

Is this typically done in the design business (signing up a client with the hosting company of MY choice? Should I mark-up the hosting fee? Is this unethical?

How do I make sure I am not responsible for their experience with the hosting company?

Thanks,

MichelleB.
mrae@primenet.com

Jaiem — Sun, 03 Dec 2000 07:18:53 +0000

(not a lawyer, not a legal opinion)

One thing you might want to include is a clause that clearly says the success or failure of any site you make is purely the responsibility of the client. You might build a great site but if the client doesn't promote it well, doesn't keep it up to date, has poor products or customer service etc etc it's not your fault.