Out of many types of different web hosting services, re-seller hosting basically involves indirect selling of a hosting plan. It’s basically being a middleman between a hosting purchaser and a seller. The seller doesn’t own the hosting server; he basically sells a hosting from some company in probably a discounted rate. To create own hosting server spaces, it’s required to purchase a whole lot of resources like data storage’s, servers, big damn computers, interlinks between them and of course bandwidth in a huge amount. On the other hand, when someone decides to resell hosting subscription from some company, it’s just some paperwork and being permitted to do so.
To keep the business up and running, re-seller hosting packs has to go for lower price than the usual rates. At the same time, it has to make some profit. All successful re-sellers usually find a way to balance between these do and as an entrepreneur, if you are planning to go for this business you must figure out your own ways. Depending on how many hosting plans you can sell, the more you will make money on an exponential basis. This whole thing is a bit complicated and one should be giving second thoughts before getting into the job.
Saves Money for a Startup
If you plan on starting a hosting business and don’t own enough money to set up your own data centers, then a reseller hosting is a much smaller yet timely alternative. Maybe when you make enough money you could set your own servers up? Well don’t expect to be rich overnight just selling other companies’ hosting plans, but you could always make more money by working hard. Search for a company that sells resell hosting plans and offers easier reachability. Purchase their plans and also get a decent amount of bandwidths as well. The bigger your lump is, the more money you stand a chance to make.
Decide your Reselling Price
Setting the price in the perfect level is one most difficult job for hosting re-sellers. The purchasing price is quite high for a business and one has to make the profiting window out of that. We assume the server space and bandwidth chunk amount you have purchased is remarkably large, hence there should be a moderate price which would get you a head start with moderate profit in the beginning. As time goes and your business gets bigger, you may readjust the pricing structure for a bigger profit window. Better review your marketing courses and also use your brain to make the correct decision since it’s one of the most difficult parts in a hosting reselling business.
Make Catchy Promotions
Let people know there’s a new cheap web hosting re-seller in town. Also ensure that this service might be inexpensive but not cheap, they are getting a whole lot of advantages for the competitive price. The better the promotion is, the more market growth you could expect. Promotion online might take some SEO knowledge, and offline promotion takes a basic set of knowledge in marketing. The whole thing is a bit technical, but you have to learn these.
Once you are done doing the above steps, your business should get into a smooth velocity. Given that everything goes right, you can expect moderate to high profit in a short term.