5 Tips to Make Money With Reseller Hosting {July} Read It! >> Diversifying your income streams is always a good idea. The struggle is finding complementary services to offer so you don’t end up over your head. Therefore, if your primary gig is offering website-related services, we have a suggestion: become a hosting reseller.
If you’ve already established a customer base, adding hosting services to your packages is an easy way to increase profit. With minimal effort, you boost your bottom line.
What Does It Mean to Be a Hosting Reseller?
Reseller hosting is the practice of purchasing server storage space and bandwidth from data centers, then branding and selling it. Typically, it’s bundled into packages that include web design and upkeep, content creation, and email. However, it is up to you how you sell it and what your bundles include.
In essence, you function as the hosting provider without running or managing the servers.
How to Turn Hosting Into Profit
On its surface, reseller hosting sounds pretty easy. And in truth, it is a straightforward process. Still, that doesn’t mean things can’t go wrong. Here are five tips that should help you avoid common pitfalls and find the best reseller hosting.
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Do Your Homework
Any time you add a new revenue stream, you need to do your research—this article is just the beginning. So, what things do you need to look into?
- Which companies sell server space and bandwidth wholesale.
- What your competitors charge on average for the service.
- How other companies structure their bundles.
- What marketing strategies to employ.
- Which tools will help make your reseller hosting more successful?
Once you’re armed with this information, you can start taking steps forward.
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Select Your Niche
In business, it’s all about knowing your audience.
If you already have a successful web-related business, you likely already know your niche. For example, if you create websites for orthodontists, orthodontics is your niche. On the other hand, if you design for mom-and-pop companies, you’re targeting small business owners.
Remember: you aren’t competing with the giants of the hosting industry. Quite frankly, you can’t. So keep it small but profitable, and tie it into your existing business model.
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Work With the Right Hosting Provider
Out of all the decisions you need to make as a hosting reseller, this is the biggest. Your provider dictates your services and the quality of your hosting. This selection makes or breaks this part of your business.
You’ll feel tempted to go with the most recognizable names. Think HostGator and GoDaddy. But bigger isn’t always better.
To select the right provider, figure out which features your clients actually need. Then, eliminate the providers that either don’t offer these or do, but with too many extras. A good value means not paying for useless extras, no matter how special they seem.
There is an exception here: if you are launching a new business, you might not know your clients’ needs. In this case, you might want to opt for the most features for the price.
Other aspects to look at when assessing providers are:
- Uptime score
- Customer support
- Maintenance
- Security features
- Guarantees
- Customer reviews
Take your time in assessing providers. This is not a step you want to rush on.
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Avoid Overselling Space
More likely than not, your customers won’t fully utilize the hosting included in your bundle. It’s tempting to guesstimate what they will and won’t use, then sell that “unused” space to another client.
Resist temptation. When you oversell, the demand will exceed the server capacity. This translates into lag, generally poor performance, and websites crashing. It’s bad for the client, and it’s bad for your business.
The rule of thumb in reseller hosting is to never sell over 70% of your disk space in your bundles. This leaves a reasonable amount for selling as extra space and provides padding. Additionally, whatever space you sell to a client is theirs, whether they use it or not.
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Expand Your Customer Support
When you add a revenue stream, you take on all the issues that can arise from it. With web hosting, there are a lot.
You need to start working on expanding your customer support capabilities to accommodate this. Depending on how small your business is—perhaps a one-person show—outsourcing customer support might be necessary. Be sure to factor this into your pricing.
If this is a significant concern, select a hosting provider that includes customer support for clients. Just make sure reviews verify the quality of this assistance.
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