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What is Reseller Hosting?

Reseller Hosting, in its essence is same as any retailing business – it is the middle man of website hosting industry. The reseller purchases the hosting facilities (bandwidth/CPU power/hard disk space/software/) themselves from a web hosting giant at cheaper rates and then sell them at higher retail rates. Also, it requires very low investment and almost no requirement of technical knowledge, resources and hardware installation. All one needs is a genuine/trustworthy provider, intelligent plans and a professional website to diversify his income stream and bring home set income on a regular basis.

Here’s an example: let’s say that you purchase a reseller account for a flat fee of $50 per month from a web hosting giant. Let’s also say that you currently have twenty customers who’d pay you to host their website. Here’s a foreshadowing of of your earnings each month if you charged:

• $10per month: 20 customers x $10 = $200 per month – $50 for the reseller account = $150 profit each month.
• $20 per month: 20 customers x $20 = $400 per month – $50 for the reseller account = $350 profit each month.
• $40 per month: 20 customers x $40 = $800 per month – $50 for the reseller account = $750 profit each month.

And this is just a tip of the iceberg if you’ve, say, 100 customers instead of just 20 (in which case you’ll have to spend more on the hosting plan, depending on your clients’ traffic) and combine your web hosting offer with other products and/or services, such as website design/developments, web solutions or business consulting. In fact this is how most of the reseller hosts set themselves apart from standard big hosts- by offering alternate services that complement web hosting.

Reseller Hosting Sounds like something I want to try. How do I start?

Web hosting companies that offer reseller hosting make it extremely easy. You can do this by following these easy steps:

• Log onto the Internet and research web server providers. This will allow you to know what other resellers are doing, who provides the best web hosting packages and the web server companies that offer the best services. Research the best names for your reseller business. Select a name that says what your business does instantly. Register your domain name with a domain service provider.
• Consider how many customers you think you can get added to your new company immediately. This will determine the package you will need.
• Determine the types and size of packages you will offer your customer.
• Determine the price you will sell your packages at or if you will use the hosting as a value added service to a related service.
• Compare reseller hosting plans to determine which ones will best suit your needs and your budget.
• Sign up for the reseller package that best suits your needs with your preferred server provider.
• Follow the instructions provided to you by the parent host to set up each of your packages that you will offer your customers.
• Build your website to announce your web hosting reseller business. Website owners will sign up for your services and pay you through your website.
• Optimize your website so that it will stand out among the thousands of other hosting company websites. This includes submitting your website to directories, using keywords and search engine optimization (SEO), advertising, and social networking. If your website is popular and visible to Internet users, you may be able to build a greater customer base. After this, begin marketing your new business and sign up customers.
• Support your new customers and watch your business grow.

How do I choose a good reseller hosting provider?

Here are some important consideration factors when you are searching for the right reseller hosting provider.

Reliability:

The quality of your provider’s servers is directly proportional to your reputation in the market. Make sure that you pick up a reseller hosting provider that has a strong uptime record, has existed for more than a month and shows no signs of folding their tents in the near future.

Customer Support:

The rate at which your client base grows is directly proportional to the chances of your customer services being screwed up. A dedicated team of technical support to respond to your requests is a must.

Web Hosting Features:

No rocket science here, just simple facts. Basic hosting features like bandwidth and disk space directly affect the amount of accounts you can create and sell. More allocated bandwidth = more profit.

Scalability:

When you start reselling hosting services, it is advisable that you pay only for a few domains and provide a modest range of applications. But years down the line ,as your client base expands, the number of sites you service will increase . Make sure that you choose a host that provides a hassle-free way to upgrade from a shared server arrangement to a dedicated server .

Wrapping Things Up

With the aforementioned considerations fully kept in mind, it’s time to find a reseller hosting plan that makes fiscal sense and offers a great opportunity for both profits and professional development. The hosting industry has reached its adolescent stage and is growing quickly, and so are the opportunities for advancement. So get out there and make a splash among web hosts.