When starting a new business venture, one of the first questions that you should answer is ‘will this idea make a profit?’ If not, it may not be worth your time and energy to pursue it. Selling web hosting or reseller hosting can be an appealing business plan. However, you should do it in such a way to ensure you will gain a profit and not end up losing money.
The Basics of Reseller Hosting
The idea of reseller hosting is fairly simple. You will subscribe to a stable reseller hosting plan from a provider. Then, you will divvy up the resources included in that plan and sell it to clients of your own. The clients may not even realize that you are not the original hosting provider.
The major appeal to reseller hosting is the low start-up costs. You will not be responsible for purchasing the servers or powerful computer equipment since you are merely renting the resources from the provider. In addition to this, some web designers or developers will find hosting to be the next step in services that they can offer. They are already familiar with the terminology, technology, and clients’ websites. It is a good way for them to increase their revenue by receiving a reoccurring charge from clients.
Features to Look For
While on the lookout for your hosting plan, there are several features that you should keep in mind. These will help you become a successful reseller, as they are things that your clients will want to have as well.
- Good security features: The host should be providing strong antivirus software to keep your and your clients’ files safe from hackers. This software should undergo updates regularly.
- Bundles: Many plans come with additional other features bundled together, such as cPanel, site builders, and email hosting.
- Customization options: Clients appreciate it when they can customize their plans. This way, they can choose exactly what suits them, without having to pay for extra things that they won’t need, such as additional storage.
Another feature to pay attention to is whether or not the hosting provider offers troubleshooting services. If you are fairly knowledgeable in the field, you may not need the provider for help. Otherwise, it may be beneficial for you to have. This is because when the client has issues with their web hosting, they will be coming to you for answers. Being able to turn to your provider for help can help solve the problem quickly and keep the customer happy.
What Price to Charge?
The key to reseller hosting is to find a fair price to charge clients. Ideally, you will want to cover your cost of the plan and then make additional money on top of that. You will not want the price to be too high because then your clients will leave you for a cheaper competitor. To make a profit, you will likely need multiple clients at once.
Once you have several loyal customers locked in for a certain amount of time, you should be able to easily make a profit. If a customer is happy with their hosting provider, they are unlikely to ever leave.
Find Your Niche
When it comes to reseller hosting, you will come across many big-name providers. These are companies that have been in the industry for decades and control most of the market. There is no point trying to compete with these companies with your start-up business. The better plan would be to select a niche market and tailor their services to meet that need. Examples of these niches include photography businesses, restaurants, real estate agents, etc.
To make a profit, networking is key. Use the resources that you have available to make yourself known to potential clients. For instance, you could browse through online hosting forums to see what features people have an interest in and what they want from their hosting provider. Use this knowledge to enhance your offered plan.
It can be beneficial for you to call or visit companies in the industry you are focusing your efforts on. Ask them if they currently have a website and give them your pitch. If you are lucky, they may be willing to give you a shot. Many smaller companies will appreciate an entrepreneur approaching them rather than having to go with an industry giant.