There are a variety of online businesses that you can run from your home, but one that isn’t often talked about is reseller hosting. Reseller hosting is a great way business venture, or it can be used to diversify your income. However, reseller hosting can be very competitive. Therefore, if you want to earn money in this area, you’ll need to get ahead of the competition. This means providing the right services to the right customers by using strong branding and a consistent marketing message.
This article will look at what exactly reseller hosting is and how you can make money from it.
Reseller Hosting Defined: What Exactly Is It?
When you have a reseller hosting business, you’re not running or managing any hosting servers yourself. Instead, you rent hosting space wholesale from a large web hosting provider. This is usually done in the form of reseller hosting packages. You then divide up the server space and sell parcels of it to customers.
In most cases, everything is white label, so it looks as if you’re running your own web hosting services. This means that your clients won’t ever know that they are using another web host’s servers.
With reseller hosting, you can create your own hosting plans, take payments, offer additional features like email and backups, and more.
Reseller Hosting Requirements: What Do You Need?
The web hosting market is very competitive. Larger hosts tend to dominate it, competing on price. However, that doesn’t mean that there isn’t room for you.
Since you’ll be renting customers a certain amount of server space for a specific period of time, your profit comes from the difference between the cost of renting the server space and the price you’re charging customers. However, it’s unlikely that you can match the prices offered by the “big guys.” Therefore, you need to find a way to make your service more appealing so customers will choose you. This could mean marketing to a specific niche or offering hosting as part of a larger package, such as web development.
In addition to packaging your hosting services, so people are willing to pay your prices, you’ll need to have some technical skills. You don’t need to be a programmer, but you need to have a thorough understanding of how servers work. It’s also helpful if you have basic web design and development skills.
Making Money with Reseller Hosting: How To Do It
- Do your research. By now, you should have a good idea of how you’re going to set your reseller hosting service apart from all the others. For instance, if you’ve decided to target a specific niche, maybe you’re going to focus on catering to plumbers in your area. Regardless of your focus, you’ll want to research it thoroughly. You’ll want to know if you have any competitors in this area as well as become familiar with the needs of this niche so you can address them with your service.
- Figure out your core offerings. Once you understand the needs of your niche market, you’ll know what to offer them. When it comes to reseller hosting, you usually have a few different types of hosting you can provide, in addition to some bundled features provided by your parent hosting provider. For example, you need to decide whether it’s best to offer your clients shared, VPS, dedicated, or WordPress hosting. Additionally, depending on your parent host, you can possibly offer additional services such as domain name management and email accounts.
- Provide Exceptional Customer Support. As a small host, you have to provide stellar customer support. This will not only make your company stand out, but happy customers are the best form of advertising. Customer support begins the minute someone arrives at your site. If a visitor has any questions, they need to be able to find the answer right away.
Furthermore, the website should be simple to navigate and seamlessly guide users through the process of signing up for your web hosting services. After they’ve signed up, you need to be sure that you’re available to address their issues 24/7/365. Some hosts offer this service with their reseller accounts, while others do not. If your host doesn’t offer this, you’ll need to outsource this job to a technical support company.
A great thing about reseller hosting is that your target audience generally has a high customer lifetime value. This means that your clients should stay with you for a long time as long as you provide great service. As a result, you can pay more upfront for customer acquisition as every customer is worth a lot to your business.