Reseller hosting is a concept that you may have come across, but like many people, you may be unclear as to what it actually is. In this article, we’ll give you a brief overview of reseller hosting, and how you can become most profitably involved in this booming online business sector.
In a nutshell, reseller hosting is a bit like sub-letting an apartment – or more accurately, sub-letting each individual room in an apartment. You lease a chunk of web server space from a parent company, divide it up into smaller chunks or hosting packages, and sell it on to other people. As far as your customers are concerned, you’re a hosting company, although from your point of view, all the tricky stuff such as technical support continues to be handled by the parent company.
So what’s the best way to make reseller hosting work for you?
Best tips on how to start a reseller hosting business
1. act as a referral partner for the parent company. This is a safe and easy option for reseller hosting, since it doesn’t involve you having to run customer accounts. Instead, you earn commission for every customer you refer to the parent company who then signs up. The downside to this option is that you need to have an online marketing presence, through a review website or ad campaig
2. start small. One of the great advantages of reseller hosting is that you only need a computer and an internet connection to get started – you don’t need to invest lots of money or get to grips with complicated technical applications. For that reason, you should start by concentrating on reselling web space. This is simple and straightforward, and a good way to earn whilst building a client base and gaining experience.
3. for the same reason, it’s also a good idea to start with shared hosting, since this is the simplest form of web hosting that you can resell. As your business expands, you can look at offering more advanced reseller services, such as dedicated and co-located hosting, domain name registration and merchant accounts.
4. work towards getting your own server. This will give you a greater share of the profits over time. However, it also involves greater responsibility for maintenance, back-up and repair, so you should only consider this option when you are confident that you can handle these technical requirements.
5. don’t neglect your marketing and sales strategy. Your reseller business won’t make money if nobody can find you. So be very clear on who your target customers are, and how you can reach them. This means constructing a well-optimized home site for your reseller hosting business, and running a well-targeted ad campaign.
6. finally, don’t be afraid to ask for help, guidance and customer feedback. There is plenty of free advice available on the web to help you decide on the approach that will best suit your purposes. Remember, you may need to try several approaches before you find the reseller hosting strategy that works for you.