Start Reseller Hosting Business

Every day thousands of websites are getting uploaded on the internet. So investing into a web hosting company is nothing more than a few dollars to pay your service provider. You can start reseller hosting services and make money at little investment.

You may know all relevant domains names are already registered by others so selecting the best fit domain name is the biggest issue you are going to face when you are setting up a new website. Also you need to find the most suitable web hosting company that can provide you best quality web hosting services and a good support for your website.

For any web developer or a web professional who wants to start with web hosting services then reseller hosting is the best suited option for you to get started. You can decide your own price for web hosting and define your own plan structure. There are a number of providers on the internet for the same job. All you have to do is pick a good web site hosting provider with a good quality support and services who is allowing multiple domain name for a large enough limited space or unlimited storage space. Or you can select a provider who provide reseller domain account and they provide reseller web hosting. Some companies offer reseller hosting facility but they don’t give you reseller domain account. It is better to go to a provider who provides both the services.

Many web hosting service provider allows unlimited domains on their web space and some allow limited domains and unlimited web space. So it depends on your requirements and size of your local market and demand to select a provider which fits into your requirements. There are lots of companies who offer free web templates and lots of tools which can be also helpful to you. It is better to choose the provider who provides this kind of extra utilities free along with reseller web hosting.

Unlimited hosting space is not the only key factor to choose web hosting provider. Quality of service, level of support and uptime are other key factors that would affect your clients to stay with you. Imagine that your customers have online websites that sell phone card or hotel deals with you. The websites go down or very slow to load from time to time. Eventually your clients are losing their buyers after they have spent huge amount of marketing costs just because of your service is unreliable. Due to market competitiveness, your clients will move on to other providers and you are losing your clients, subsequently your profits.

Some providers are having services for FrontPage extension web pages on their servers. So if you have knowledge of Front Page and your web site is Front Page extension installed then these providers are most suitable for you. You can update your website at real time with the help of Front Page and you don’t need to take tedious job of uploading web pages on the internet by ftp connection.

You should also check if only limited number of databases is allowed by the provider or you can have any number of databases as required. Because some web hosting provider allows limited databases on their space and you realize down the line that it is not capable to cope with your business growth.

So search for the best provider that suits you. Understand all the teams and conditions check for their reliability in the forums and then select one. It is not hard to start a web hosting reseller business just consider the points listed above and have a good luck with you.

What is Reseller Web Hosting?

The simplest definition is that you buy a ‘reseller hosting plan’ or a dedicated server. You then start your own company, selling web hosting to other people.

That sounds simple…isn’t it more complicated?

Reseller web hosting refers to selling any kind of web hosting. However, it usually refers to an individual person or small hosting company that buys a dedicated server or a ‘small reseller web hosting plan’. Then that person or business sets up a hosting company so that they can sell hosting to other people. It doesn’t matter if you are a sole business person with one dedicated server or a very large company with thousands of servers – the principle is the same.

Why should I start reseller web hosting?

If you already have a have a website with traffic, or better still, a web design business, then you also have a ready-made client base who need hosting for the websites that you are building for them. It makes perfect sense to encourage them to buy that hosting from you instead of another company. This allows you to offer a complete package to people, which is very attractive, especially to people who really are not internet savvy. There are also many other potential customers who just don’t’ have the time to hunt for a web builder as well as a host – so make it easy for them! Hosting their site also keeps the communication channels open so that if they wish to build other sites, you are there – ready and willing! It’s also a good idea for anyone who wants to start their own business but doesn’t have much start-up capital.

Other good reasons…

  • It brings in a steady income
  • There is a huge market because so many people want their own website • If you give it some thought, you can find a niche market that has little competition
  • This means that even if you’re a sole trader or a small company, you can compete with bigger companies.

So how could I make money as a Reseller Host?

Here is an example-

Step One
Buy a reseller web hosting package that has 1,000 MB of disk space and 1,000 MB of bandwidth. Let’s say that this package costs you $15.00 each month.

Step Two:
Break this package down into 10 separate accounts, each with 100 MB of disk space and 100MB of bandwidth.

Step Three:
Sell these ten packages to your customers. If you sell each one for a ‘rental’ of $10.00 per month, you would be bringing in $100.00 each month and your outlay would be $15.00 so you would have a monthly profit of $85.00. Not bad, eh?

Even large, well known web hosting companies resell hosting. They bulk buy space or rent servers from companies bigger than themselves and then sell the hosting to you. Even multi million dollar companies can own or rent servers for reselling.

But how can I compete with million dollar companies?

You can’t – on their terms – because they spent a fortune in advertising, focus on a large community and have enough of a cash flow to wait to recoup that outlay. If you’re a one man band or a small company, you need to find a way to make your hosting different from all of the other web hosting companies.

Small is beautiful

The secret is to find a niche market of people who want websites that are specific to their needs. Let’s say you decide that you’ll provide hosting specifically for people researching their family trees. Visit a few genealogy forums and see what’s already available and what these folk offer. Is there anything that people are asking for on the forums, that isn’t already available? Start making a list of these things so that you can supply them.

Posting on related forums is a great way of advertising and is obviously the right place as it’s read by your target market – but do be careful as many forums have rules about spammers and cold sellers.

However, it only takes a few people to start signing up to your hosting and then word will spread.

Support tips

  • Make life easy on yourself. Try to go for a niche market where the clients won’t be technical experts. That way, they are unlikely to install lots of complicated scripts onto their site that they may want you to help them with.
  • The easiest clients are the ones that upload something and then it just sits there. This obviously includes genealogists (although they will update) but also think about graphics hosting along the lines of photo bucket etc.
  • Or, you could choose a type of shopping cart and offer sites that have that feature already installed for your customers. In reseller web hosting, it’s better to be a ‘master of one trade’ than a ‘jack of all’.
  • If you are a small concern, your reputation is very valuable and can make or break you, so look after it well. When you are small, it’s easier to offer personalized, strong customer service which will pay dividends. Praise is good advertising!

I can’t think of any niche markets…

Here are a few ideas to get you started:

  • Websites offering ready-made blogging facilities for people in your local area
  • Sites geared up for specific games
  • Websites for families or family members such as grandparents or teens
  • Image hosting such as for eBay or just for picture collections
  • If none of the above appeals, think of something that you are very passionate about…duck keeping, collecting autographs, organizing, crafts…

Once you have a shortlist, do an internet search to see what’s already available. If the market is swamped, move on. This is about being different and standing out from the crowd.

Reseller Web hosting if you have a dedicated server

Some people already have their own server – often acquired to play online games with their friends. If this is you, then you are in an ideal position to sell web hosting. Or, you could do it the other way around and sell web hosting and use that income to buy the server.

Either way, it will bring in an income – and you get your own server for your own use too.

Being a reseller web host is a good way to bring in a regular income. Make sure that what you offer is easy to maintain and as unique as possible – but be open to customer suggestions and offer great customer service…and you could be onto a winner.

There are a lot of companies out there offering reseller packages so spend a long time doing your homework for the best deal before you start.

Good luck!