Reseller Hosting Explained

Reseller Defined:

The term Reseller according to the dictionary means to sell again i.e. to sell a product or service to the public or to an end user, especially as an authorized dealer, while making sure that you make a profit on the sale.

Reseller Hosting

Reseller hosting is no different either, a reseller buys a Web hosting package from a hosting company and tries to sell it independently. The profit for the reseller lies in either the discount or in the commission s/he gets from selling an account.

For example: The reseller might purchase a package whose features are valued at $100 for $90. So, the reseller stands to make a $10 profit on selling the package to customers. Normally as the customers increase, so does the profit margin for the reseller.

Or, you can get some money by earning commissions from a hosting company. This happens when you refer potential customers to the hosting company. If the customer signs up with the company then you earn a small recurring commission until the customer uses the services.

Most web hosting companies try to outsource their services to resellers as it helps them to extend their business reach without the cost of marketing and sales and also helps them to concentrate on the business side of things.

What can be resold

As a reseller you can decide what kinds of services you can sell. You can provide shared, dedicated or co-location web hosting or merchant accounts, store fronts etc.

If you go with hosting then it might be useful to offer some other hosting related services like domain names, search engines etc.

Of course, if you have problems selling these value added services in the beginning then you can sell them later.

The cost and resources involved

The cost of becoming a reseller and the equipment and people required in order to be successful depends on many factors.

If you just plan to earn commission by referring people to the hosting company by using the Internet, then you do not have to put up a lot of money, all you need is an Internet ready PC and an Internet connection.

For a small start-up not a lot of money and resources are required. You can purchase a good reseller package from a hosting company by paying them some money upfront. All that is needed is a decent computer that can manage the accounts of customers and a good Internet connection.

It is advisable to start small if you are very new to the concept of web hosting and reselling. Then you can expand as you go on and start getting more and more customers in which case offering domain registration is also a very good way to make profits.

If you have the money and the experience then you can go as far as buying all the server equipment required, in which case you will also be responsible for all the server maintenance costs.

The other option could be leasing a server as this will be cheaper than buying the server, but here as well you are responsible for all the maintenance and running costs of the server.

In the above two cases you also need to make sure that you have multiple connections with the hosting company so there are no complications in case a connection goes down.

Upside

The best thing about being a reseller is that you do not require a lot of upfront investment.

There is no need to have a lot of technical knowledge. Account management and Internet skills are all that is required. However, it would be really handy if you have some sales and marketing experience so you can interact with your customers better.

The hosting company generally provides and maintains all the hardware and software.

You do not need to hire a lot of IT staff to provide support. Providing basic support and leaving the more technical issues to the parent company support staff can be easily achieved.

Downside

Support can sometimes be delayed, as you are dependent on the parent company to handle the technical aspects. If there is a delay from their side then you along with your customer are affected.

Sometimes customers leave you if they find out that you are a reseller and not a real hosting company.

Tips for marketing yourself

If you are starting out on a small scale then visiting message boards and posting your services there is a good idea. A lot of potential clientele with relatively small hosting needs also frequent message boards and outline their desired services.

Having contests is a great idea for bringing awareness and interest about your services.

Online ad campaigns, signatures, and text links are very helpful techniques.

Once you have gotten a bigger budget then you can go for Google ad words or PPC search engines.

The best strategy is to try out various combinations of these approaches and work out the best one for your needs.

Ashish Jain
M6.Net
http://www.m6.net

---

Avoiding Bad Web Hosts

The Internet represents the most powerful communication revolution since the... Read More

The 2 Sides of Reseller Web Hosting

In the first case the customer is really looking for... Read More

GBs and Gbs of Web Hosting

What is web hosting you ask? Web hosting refers to... Read More

Web Hosting in 2005 --- Finding the Niche and Cashing in!

Web Hosting in 2005 --- Finding the Niche and Cashing... Read More

How to Transfer Your Web Site to a New Web Hosting Service?

There are various reasons why an online business owner like... Read More

Thinking About Changing to a New Web Hosting Company? 5 Steps to Plan Ahead for the Move

Perhaps your web hosting company has a technical support group... Read More

Free or Paid Web Hosting?

Just finished your first website? So it's the time to... Read More

Budget Web Hosting - Dirty Secrets That Can Squash Your Websites Chance of Success

When it comes to budget web hosting, there are a... Read More

More Profits in Your Website Hosting Business

If you run a website hosting business, you already know... Read More

Top 10 Web Hosting Blunders and How to Avoid Them

Consider the following web hosting blunders and do not allow... Read More

CHMOD - Undertanding File Permissions on a Unix-Based Server

The basic command for changing file permissions in unix based... Read More

Criteria of Choosing an Ideal Web Hosting Company

Before we talk about what it takes to... Read More

Sell Web Hosting for Fun and Profit

The market is good for new Web hosting companies. According... Read More

Where to Get Cheap Web Hosting

First, to see if you can use cheap web hosting... Read More

Cheap Web Hosting Package? eCommerce Web Hosting? - Choosing A Web Hosting Provider

One of the important decisions you'll make when you decide... Read More

Business Web Hosting: Which is Right for You?

Business web hosting is what you need. You have a... Read More

Server Uptimes Revealed: The Hidden Cost of Cheap Hosting

We often see server uptime statistics when looking for hosting... Read More

Web Hosting: Shared or Dedicated - Which Should You Choose?

Before you begin your search for a web host you... Read More

Monitor Your Web Site for Downtime

For those in the Internet business the availability of their... Read More

A Simple Guide to Web Hosting

Personal Computers, Servers Or ISP?You need a server to host... Read More

Reseller Web Hosting - A Cheaper Alternative?

There comes a time when the internet bug hits us... Read More

Attracting Extra Web Hosting Customers By Targeting Cities, i.e. New York Web Hosting

These searchers are looking for a hosting company in a... Read More

How To Choose A Web Host That Meets Your Needs

One of the most difficult choices you have to make... Read More

4 Tips to Find the Web Host That?s Right For You

Choosing to make a web site is a very big... Read More

Dedicated / Virtual Dedicated Servers and Its Benefits!

What is a Dedicated / Virtual Dedicated server and why... Read More

7 Key Points to Consider When Choosing a Web Host

With literally thousands of web hosting companies in the industry... Read More

Web Hosting; Make Them Work for You

There are two main types of host providers. They are... Read More

Web Hosting Service ? What you Need to Know to Change Web Hosting Providers

When service at your web hosting company is lacking, or... Read More

Getting The Best Web Hosting For Your Business

After the dot.com bubble burst a few years back I... Read More

Good Web Hosting ? What Is It?

With hundreds of web hosting companies to choose from today... Read More

Web Hosting and Development

If you've ever browsed the World Wide Web and wondered... Read More

Shared Web Hosting Service Explained!

The next concern for you after designing and developing web... Read More

Budget Web Hosting - Are They All Created Equal?

Choosing a budget web hosting company can be overwhelming. In... Read More