As the name suggests, Reselling means to sell again, that is, selling a service or a product to the end user or the public, and making sure that you make a good profit out of it as an authorized dealer.
Talking about a website’s success, the type of web hosting used for the website can act as a huge part of it. The right hosting package enables you to maximize the resources available to you to help you effectively promote the website on the internet. Reseller hosting has come out to be an effective way to make money as the demand for web host companies is on the rise.
Mostly large companies are the ones that sign-up with hosting providers and then lease the services to the smaller scale companies. The ones who have engaged in the reselling business have found it an effective way to earn money over the internet, and subsequently, with time, more and more people are developing an interest in learning about reseller web hosting and about how it works.
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There are two ways to earn a profit: either through the discount, the reseller offers or in the commission the reseller gets from selling an account. Another way is by referring likely users to the hosting companies. You can earn a small commission from the company, if the user signs up, which would be recurring until the time the user stops using the services.
We have seen a lot of hosting companies outsourcing their services to the resellers. In this way, the companies can easily market their services without suffering the cost of sales and marketing.
What can you resell?
There are a number of services to sell, and as a reseller, you have the power to decide what to sell. Services like dedicated hosting or shared web hosting or even merchant accounts, storefronts, etc. are the options you can sell.
Since you would be providing hosting services, other hosting related services like domain names, add-ons etc. can amount useful to the customers.
You always have the option to sell the value-added services later in the time if you are running into problems in the beginning.
How-to Guide (For Reseller Hosting)
Market Research: The first most thing that you ought to do is have sound knowledge about the market in today’s date. Educate yourself about websites, web hosting and try to understand its different aspects.
Prerequisite Knowledge: Do some study on the existing web host providers. Research about the kind of offers they are giving and the type of packages they are offering along with the costing and features. Make comparisons of those hosting providers and determine the best ones. Use all of this knowledge to formulate and design the packages you will offer for reselling.
Marketing and sales: Once you have planned on your business and are about to kick-start, factors like marketing and promotion need to be emphasized on to make your business a success. Same has to be done with reseller hosting services. After you have planned the services that you will offer to your probable customers, design an effective marketing strategy that will prompt customers to avail your services. The marketing strategy that you adopt should make you stand out from the crowd of the rest of the resellers and should help you have a competitive edge over them. Factors like quality of service(QoS), performance and customer service play great roles in the success of a business and these need to be focussed upon.
Demand: Find what is the need of the customers, what they demand and make efforts to fulfill those demands by your services.
Important aspects: Customers look for certain factors before choosing the right web hosting provider for their website. Factors like bandwidth, disk space, etc. are two major ones that the individuals or companies consider in finding a suitable provider. To attain satisfied customers and to maintain good and healthy relations with your customers, you should provide them with the best of the services at the least possible price. If your plan provides your customers with an impressive bandwidth and a good amount of disk space, this will let your customers keep their sites up and running all the time with minimum possible lags and problems. This will also help you attract new clients to opt for your web hosting plan.
There are a lot of factors that decide upon the cost of becoming a reseller and also the equipment and manpower needed to get success.
If you are planning on setting up your business over the Internet then all you need is a PC with Internet services running. If you are new to this concept of reselling, it is advisable for you to start small. As with time, you will keep gaining knowledge about the field; you can expand and start getting multiple customers.
In case you have some sound knowledge about the reselling business and have enough money, then you can go as far as you wish to invest.
Pros and Cons
The biggest advantage of reseller hosting is the earning. On the other hand, looking at it from a user’s perspective, the price of retail hosting is relatively low, perhaps a few dollars a month.
But the problem that the resellers face is, unlike the web hosting firms, the resellers cannot provide its customers with some reliable technical support. Newbies might not find reseller hosting as a portable option as they already would be short on technical knowledge hence if they ever run into problems they would need reliable technical support from the established web hosting firms. Reseller hosting for end users is good only if the user is some experienced webmaster.
Plus sometimes the rate difference between the reseller and regular web hosting is not very remarkable. We’ll explain the pros and cons in detail in a seperate article.
The cost of a startup in Reseller hosting is limited and low which makes it a relatively low-risk investment and hence, a great option for entrepreneurs who are planning on starting their own hosting business. Someone who can help entrepreneurs set up a stable web hosting business with world-class infrastructure is ResellerClub. They are one of the most trusted and reputed brands in the web hosting space, offering Reseller Programs for various hosting solutions. We hope that you are now well informed about what Reseller hosting means and how you can benefit with the same. Unlock the power of Reseller hosting with ResellerClub and witness the growth of your web hosting business.