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Reseller Hosting 101

| February 16, 2012 More



Web hosting companies are increasingly outsourcing their services since it helps them reach more people without having to spend more on sales and marketing. In reseller hosting, a reseller purchases a hosting plan from a hosting company, and then sells it off independently. The reseller then makes a profit either from the discount offered by the hosting company or from a commission earned from the sale.

For instance, the reseller buys a plan valued at $200 for $180. This means that the reseller will earn a profit if $20 for every hosting plan sold. The reseller could also make money from commissions paid by the hosting company. This occurs when the reseller refers prospective clients to the company. Once the client signs up for a plan, the reseller then earns a recurring commission as long as the client continues using the services.

What can you sell?

As a reseller, you have the liberty of choosing what type of services to sell. You could offer dedicated, co-location or shared web hosting, or even store fronts and merchant accounts. If you decide to offer hosting services, then you could also consider offering related services such as domain name registration.

Resources and costs

There are several factors which determine the resources and costs involved in becoming a reseller. If you plan to simply make money by referring prospective clients to the company, then it won’t cost you much. All you need is a computer and a reliable internet connection.

For a small startup, you will need to pay upfront for a good reseller package. You will then need to have a reliable computer with internet connection which will enable you to manage customers’ accounts.

If you are a beginner in the business of reselling and web hosting, then you need to start small. As you get more customers and your business grows, you can then start offering more services. However, if you have the experience and the resources, then you can go to the extent of buying server equipment. You could also consider the cheaper option of leasing a server. Keep in mind that running your own server means that you will be responsible for all costs of maintenance.

The pros

Reselling web hosting has several advantages. First, you don’t need to invest a lot of money upfront. In addition, you don’t require much technical know-how. The hosting company usually handles software and hardware maintenance. All that you need is good internet and account management skills. A little marketing experience would also be useful for interacting effectively with your customers.

The cons

Since all technical support is handled by the parent company, you may experience delays in receiving support. This means that your customers also get affected. At times, when customers find out that you are not the real hosting company, they leave immediately.

How to market yourself                                     

When starting out, you could advertise your services on online message boards. Many prospective customers with small hosting needs usually visit such message boards. You could also run contests to create interest and awareness of your services. Other helpful tactics include text links, online ad campaigns and email signatures.

 

Author Bio

Charles Mburugu is a technology lover and often writes about internet marketing and social media. He also writes about coupon deals at discount blogs that share ANhosting discounts and midphase coupons. Currently, he is writing for a coupon site which offers Midphase.com coupon and AnHosting.com coupon.

 


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Category: Web Hosting

About the Author (Author Profile)

Kori is the editor and owner of Netchunks, a premier blog about Webmaster and Blogging Tips. She intends to make the web a friendlier place by sharing info and articles which will help other webmasters and bloggers to become successful online.

Comments (9)

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  1. Saket Jajodia from Internet Tools
    Twitter:
    says:

    Thanks Charles, for this post, one of my friend is thinking of doing or I think he is already doing, I am sure this will help him a lot.. Thanks once again..!! :)
    Saket Jajodia recently posted..Create Polls Using GoPollGo And Get Real-Time Analytics UpdatesMy Profile

  2. Pradosh from Blog For Bloggers
    Twitter:
    says:

    Reseller is best option for one planning to start hosting.
    But VPS is than reseller but you need much more experience and you’ll able provide your own support.
    Pradosh recently posted..10 Plus Points Why Every Blogger And Webmaster Should Participate In ForumsMy Profile

  3. “Reselling web hosting has several advantages. First, you don’t need to invest a lot of money upfront. In addition, you don’t require much technical know-how. The hosting company usually handles software and hardware maintenance. All that you need is good Internet and account management skills. A little marketing experience would also be useful for interacting effectively with your customers.”

    Will it help in growth of business?

    Can you give some names of hosting company usually handles software and hardware maintenance. I need its urgent.

  4. Carl
    Twitter:
    says:

    It is very tricky and I personally have tried to be a reseller long time ago when market was not that saturated and failed. However now I am reselling web-hosting to my customers and it seems that this is working very well for me.

  5. DiNaRa says:

    I think it is a good idea for a start up company and business as the intial capitals are very low and there is a great chance of success.

  6. Maxi Oliviera says:

    Reselling web hosting is a very good idea. But one needs to be sure of what he/she wants to do, and not just wonder what to do now.

    This post should be very helpful for people who wish to do web hosting. It also show one the pros & cons of reselling, and will therefore, come very handy.

    Thanks for sharing.

    -Maxi

  7. sean from real estate blogs
    Twitter:
    says:

    I like Charles idea and I think it is a great way for a savvy marketer or techy to make a quick buck. The one problem I would have with using reselling hosting myself is that you want to make sure that you know where the server is. Sometimes if you are looking for great SEM the spiders will want your server to be in the same country. If the reseller had and could verify that info I would use them.

    Just a thought

    thanks

    sean
    sean recently posted..Abacoa Real Estate | Amenities & Buying a HomeMy Profile

  8. Charles from Michigan Web Design
    Twitter:
    says:

    We were surprised to find out just how easy it is to resell hosting through a parent company. If you find the right place they even have scripts you can set up to customize the interface for your company. Looks pretty darn slick.
    Charles recently posted..Our first Business 2 Business mixerMy Profile

  9. You are a very smart and talented writer! I’ve been reading your article content for an hour or so and it has made me reconsider this issue. I think you have great insight. Thank you.

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