Reseller hosting is an emerging service that ends up benefitting the web hosting firm and reseller. The web host is able to extend the reach of its products and services to the specific channels of the reseller, while the reseller has the opportunity to generate recurring profits from an affordable investment.
The options provided by the hosting firm generally include volume discount reselling, affiliate programs and private label solutions. Each of these models have proven to be a very cost effective for entrepreneurs and small companies looking to start their own profitable internet business. In fact, some have even gone from a simple reseller account to becoming a large, successful web hosting firm.
Reselling has become a common fixture on the hosting marketplace as more providers are now offering the service. Let’s take a closer look at this concept to see how it works and how you can get in on the action.
Popular Reseller Methods
Reseller hosting is a solution that gives you a variety of option to choose from. One of the basic methods involves commission sales. In this scenario, you sign up free as an affiliate and direct potential customers to the web hosting firm utilizing banner and link advertisements implemented with a unique tracking code. When a sale is made from your referral, you receive a small share of the proceeds as commission. This method requires that you exert effort into promotions but the web host is the most instrumental because it provides the customer with full service and support.
You can also purchase a volume discount reseller hosting package that gives you a larger share of the profits. With this type of arrangement, you purchase an account, operate from your own website, and have the option of running your reseller business openly or in transparent fashion. After paying your monthly fee, the plans you sell result in pure profits. This method has become quite popular as it provides a great deal of flexibility and profit margin with very little risk.
An increasingly popular method involves reseller hosting under a private label for the utmost in transparency and brand marketing. This is an arrangement that allows you to seamlessly run your business in a manner where customers have no way of knowing that you are not a professional web hosting firm.
The private label model helps to garner the most profits but generally requires you to take on a load of responsibilities. This type of reseller hosting is not recommended for those who are not well versed in website administration and other technical aspects. For businesses who are up for such challenges, this could be the most profitable all of reseller options. Though it will cost you a little more, you can accomplish similar goals by selecting a managed private label solution.
The Role of Your Business Partner
There are many vital aspects that go into a reseller hosting business. The most important of all are customer service and technical support. If you want to survive in this niche market, then you must be able to provide you customers with support at all times.
Almost always, instances such as hardware failures, power outages and service interruptions will be out of your hands as the provider is responsible for such matters. In many cases however, you must be able to effectively communicate these technical problems to your customers while keeping them at ease. In order for this to be a smooth process, there needs to be a clear line of communication between you and the parent web hosting firm. If you are not able to address the concerns of your customers in an efficient and timely manner, these clients just may look elsewhere for hosting. Customer service and technical support can have a tremendous impact on your profits.
In the end, it is the web host that will determine your success with a reseller hosting account. The company must provide you with a platform that is highly reliable, scalable and most importantly, secure. These elements all add to the value of a reseller hosting package. When equipped with the right solution, you have just as much potential to succeed as the next profitable reseller.