What is reseller hosting? The answer is quite simple. You buy or rent hosting services from a vendor and sell them to your customers at your price. You get a reseller hosting plan from a reliable hosting company, you customize the server space you get, and after you sell it under your own brand.
The hosting service that you get can in the plan include many things: server bandwidth, disk space, CPU, RAM, etc..Depending on them you can look for a number of customers that can use them. In this way, you can take a little chunk of the multi-million dollar hosting industry.
The business model is quite straightforward. There is a huge opportunity to make a profit if you are determined to learn what it takes to become a successful reseller.
In this short article, we will try and give you an answer to a few very important questions.
If you are looking for additional resources, check out this in-depth blog on how to resell hosting.
Do I need a lot of money to start this money-making journey?
Not really. Starting with a high budget rarely guarantees success. You can always start small. Then, as the revenue comes, you can invest your profits to buy more hosting space. The most important thing is the pricing.
Your selling price is as important as the buying price. If you set the price too high, you risk losing customers. If you sell at a low price, you lose revenue. Always do your research on your competition and their price range. Try to keep up with them, or somewhere close.
You also need to pay close attention to the price of the reseller plan you get. You need to make sure that you have a solid profit margin, meaning the difference between what you pay and what you get should be significant. It doesn't make sense to put your time and effort into a business that doesn’t reward them.
What should I look for in a hosting company?
Choose your hosting company wisely. Do a lot of research on it. The right hosting service can help your business a lot. The hosting provider is a crucial factor that determines a lot of aspects of your business.
The most important thing to look for is their future goals and make sure they align with your own. For example, if your future goals are to expand and resell to more and more customers, you want a hosting company that has the capabilities to allow your growth.
There are also a few other things to look for besides the pricing and the growth opportunities. Fast website loading speeds, customer support, order management, scalable plans, the ability to install software applications are some of the basic features your hosting company should have.
To make sure that you sign up with the right provider, take a look at reviews and ratings they have. Reading their clients' experiences will give you a better understanding of what you can expect. Take your time and do your research so you are confident in your final decision.
How do I find customers for my reselling hosting business?
You start with the basics. You identify your target customer. It all depends on the hosting services you are providing. You may also have more than one target customer. For example, if you decide to provide hosting for RAM and hosting for server bandwidth. Those are two entirely different target groups.
After identifying your target groups, you set realistic goals on what you are willing to achieve.
You can go many different ways with the promotion of your business. Many of them are free, but that doesn't make them less effective. Set up a google business, this will allow your company to pop up more often on Google searches.
Another approach you can take is to create social media to engage with potential customers and promote your business. It is free of charge and a great way to reach people all over the world. You can also create engaging content to raise brand awareness through blogs and video tutorials.
One of the best ways to promote an online business is to get people to talk about it. Get involved in an online community. Build relationships and meet new people. Of course, you can always pay for ads on TV, radio, social media promoted posts, pay-per-click ads.
Once you get customers, the most important thing is to keep them happy and satisfied with your services. No matter if you plan to expand your business or not, having a loyal customer base means having a steady way of income.
Final take
Starting any new venture is a scary and challenging journey, but don’t let that stop you!
Getting into the reseller hosting business is a great opportunity to achieve your financial freedom and take control of your time. It requires a lot of research and effort, but if you are willing to do it, your changes or success are high.
If this article achieved its purpose, you now have some basic idea of what it takes to be a reseller and you are interested to find out more. So keep on reading and learning.
