It is surprisingly easy to set-up in business as a website hosting reseller. The most common model is where you sign up as a reseller with a large hosting company and for a monthly fee (the wholesale price) get a hosting package which you resell to multiple individual users for a fee you determine (the retail price). You do not have to worry about the technical aspects of providing the service, the areas that require work from you are marketing and sales, customer support and billing (although you may get facilities to help you do this).
Becoming a website hosting reseller should produce recurring income for minimal work (assuming that the service being resold is good) and you should have a good chance of succeeding if:
* It is an obvious add-on to an existing business or:
* You have a niche where you can market the service effectively.
This depends on the service being marketed correctly. I have written articles on choosing website hosting providers which concluded that it is best for an individual to go to one of the big companies where service and continuity are more or less assured. A small company cannot expect to compete with the major suppliers in the mass market. It either needs to be fed by an existing business e.g. a web design company or direct its service at a niche in which there are few or no competitors. If you concentrate on people with a particular hobby or engaged in a particular activity you can aim to become a specialist in providing hosting in that niche(s). You aim should be to position yourself as understanding the specific needs of this niche so that people feel that you will provide a better service than a general hosting company.
Points to consider when establishing a website hosting reseller business
– It is vital to pick the right supplier as you do not want to have to move your customers between suppliers later. Clearly the service must be fast and reliable but must also supply exactly what you need to satisfy your market. Does it support all the features and scripts that your users will need?
– It will be best to start with the cheapest reseller package you can find from your chosen supplier. You will need to be up and running before you sign your first customers but this might take longer than anticipated.
– You must ensure that your website looks professional and time and effort put into this will be well spent.
– Decide what support you will offer, make this clear to your customers and stick to it. Offering telephone support is good as it gives people additional confidence but if you cannot provide this consistently it is better to stick to email.
– Ensure that you do understand their requirements so that your marketing message (and your website) tells them what they want to hear.