If you are looking to establish a hosting provider business or improve an existing IT infrastructure, reselling web hosting is one of the best ideas. This activity allows you to run a business that is simple in terms of logistics but promises good profit. However, before we proceed to the discussion of the reseller business, let’s answer the main question.
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How Does Web Hosting Reselling Work?
Today it is almost impossible to imagine a business without a website or some other type of online presence. From home-based business to large corporations, everyone needs a website to publicize their products or to become known. If you do not exist on the internet, you do not exist at all. One of the basic requirements to make website visible is web hosting. At this point, a reseller comes in as the main character in the whole hosting picture. As a reseller:
- You order a reseller hosting package from a trustful and reliable hosting provider;
- You share your reseller hosting packages with your customers;
- You control the amount of bandwidth and disk space that each account holder receives;
- You can create custom packages with different hosting needs;
- When you resell hosting plans, you become an intermediary between your hosting provider and your customers.
You can run your business white-labeled, meaning your business is under your brand, and you do not need to care about any maintenance issues, software updates, security, etc. as the leading hosting provider will take charge of the supervision of all the hosting infrastructure.
Few Things To Consider Before Entering The Business of Reseller Hosting
The path to becoming a web hosting reseller may be a bit difficult for those who want to enter the world of web hosting for the first time, in contrast to organizations that decide to use their current resources. For example, IT service providers or web design companies will find it relatively easy to resell an already existing scheme. All they need to do is add a new service under their label.
Both types of aspiring resellers should be aware that the hosting reseller business is highly competitive, and to start successful sales, they should pay attention to the following:
- Upstream host reputation – the partnership with a reliable and well-rated upstream provider ensures that your client does not face any problems. You become the face of the main host, so choosing an unreliable partner may negatively affect your brand;
- Analysis of the target audience – this is the most important task before starting web hosting reseller business. Who is your target audience? Are they small business owners or large corporations? Analyzing this indicator will help you choose the best hosting plan for your future clients and create a strong marketing and support team to provide quality services for them.
In addition to the above, a newbie in this business will also need to create a robust business infrastructure to facilitate brand building that includes:
- Establishing customer support. To achieve a competitive advantage, it is advisable to build your customer support team;
- Hiring marketing specialists. To develop new marketing and advertising strategies on the Internet and in social networks;
- Hiring a business development manager. To increase the network’s visibility in the business community.
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Finally, Here Are The Five Reasons Why It Makes Sense To Start A Reseller Hosting Business In 2019
A new window of opportunity – business is continuously looking for expansion and growth opportunities, and this is an excellent one. However, it is essential to weigh expenses and business prospects before launching any services. Fortunately, web hosting reselling requires minimal investment, and business prospects seem bright indeed.
A great way to receive additional income with no significant cost. However, to make a good profit from the web hosting reseller business, it is essential to develop a realistic margin.
A good way to upgrade existing resources – as the owner of an IT or web design company, you already have the necessary resources and experience. You can keep attention focused on the main business and create a web hosting reseller business.
An opportunity to discover new markets – you may be managing a company that targets a specific group of users. However, when you resell a service, you will come in contact with a different audience. This business may offer you insights that will pave the way to new ideas or innovations.
Give your business a new look – you may be a well-known and recognized web design agency, but if you succeed in resale, your brand will automatically get a new identity. Adding a new service to your business will help promote your brand and attract more customers.
Last Thoughts
Even though the resale of service may seem simple to you, it should be noted that web hosting is a highly competitive area. You will witness fierce competition. Hence you must be able to offer excellent customer support.
To ensure uninterrupted service, you will need to choose a reliable hosting provider. Moreover, it is highly advisable to create a special team for branding and marketing.
