The industry surrounding reseller web hosting has been allowing people to capitalize off of larger hosting companies for years now with a vast array of reputable packages to choose from. The key to becoming a successful reseller is to gain a proper understanding of how these operations work, and what you need to do to get started. The initial step in venturing into the host reselling industry, is to become familiar with the relevant terms, rates, and procedures that go along with the buying and selling process.
How Exactly Does Reseller Web Hosting Work?
The easiest way to illustrate the process of reseller web hosting is to look at it as a three tier system. The first and largest tier would be the main hosting company that is offering you various reseller packages to choose from. The second tier would be the actual hosting package that you end up purchasing. Once you’ve purchased this particular package, the third tier comes in, which consists of the pieces of that package that you end up breaking up and distributing in whichever way you choose.
All in all, you are basically purchasing a large server from an even bigger server, and distributing the bandwidth to customers, generating profit off of each sale. Bandwidth consists of numerous ports, and higher amounts of ports correlate with the server being able to handle more traffic. Therefore, customers typically look for larger bandwidth packages that can handle accelerated levels of traffic, resulting in you making a higher profit.
What a New Reseller Needs to Get Started
The basic necessities of becoming a web hosting reseller go without being said. You are of course going to need a desktop or laptop with a reliable high-speed Internet connection, and a way to receive any funds that you acquire from sales such as a PayPal account or an ecommerce site. If you’re planning on creating a larger business, then it is also advised to obtain and complete any required tax forms and licenses for you and your consumer’s protection.
You are also going to want to become knowledgeable about the control panels necessary to operate all of the customer accounts that you’re managing. As a new reseller, it is good to start with a control panel that has a user-friendly interface, and one that is easy for beginners to navigate. cPanel is a good option for novices due to it being so popular in the reselling industry, as well as its additional features that create an experience that is much more easy to adapt to. DirectAdmin is also a platform that is easy for new resellers to navigate, especially because of their panel not requiring users to be experts in installing scripts.
Tips on Maintaining Steady Profit
An almost foolproof way to ensure steady sales is to use some of the bandwidth that you have purchased to build individual websites for sale. Be sure that each site is already successfully optimized, and that traffic is already being generated to the site on a continual basis. Building a site that is already getting marketable traffic will cause customers to be much more apt to go through with the sale, knowing that they are guaranteed to profit from the website immediately.
Whether or not you intend on selling premade sites individually, creating package deals can also be a profitable business tool to promote your new reseller business to a more broader audience. For instance, offering consumers free hosting for an extended period of time has the potential to attract a very large clientele base. You may also want to consider offering complimentary tutorials or additional freebies in these packages in order to boost sales even further. Some consumers prefer to have access to an external site completely dedicated to tech support and related concerns, so this could also be a beneficial investment for your growing business.
Another innovative way to increase sales is by hosting a membership site on your purchased server, and charging members for each sign up. You can use these membership sites to allow users to create their own web pages or blogs advertising their services in a way that is much more hassle-free than hiring a developer. Many business owners would prefer building their own web pages and blogs, but they may not be very technologically inclined. Providing them with an interface that they can log in to and start building will create a much more user-friendly process for them. Many consumers on the market would be more than willing to pay for a small sign up fee if it meant the freedom of being able to build their own web pages and blogs with the aid of templates and other helpful features.
Typical Web Hosting Reseller Rates
Of course when striving to become a web hosting reseller, one has to become accustomed to the rates that most hosting packages sell for on the current market. In the United States, the cost of bandwidth is set at around ten dollars for each megabit per second on a monthly basis. Now of course with your original server costs and the time that you have put into your new business, you are going to want to charge a bit more than the relative bandwidth cost. This is where package deals and promotional offers will come in handy in order to help you stand apart from your competitors by still offering exceptional deals.
Business for host resellers is maintaining its profitability, and the prominence of technology is sure to keep it growing over the next decade. These tips should give you an idea of how to establish your own hosting business in the reseller field for a promisingly rewarding future in the industry.