Last Updated: May 23, 2012

September 13, 2011

New Reseller Pitfalls – Mistakes to Avoid

As a new reseller, you know you are fighting against a flood of competitors.  The World Wide Web has long since become inextricably merged with our modern business world.  For most major industries, not having a web site is no longer an option, and even for those for whom it is an option it's one chosen less and less.  Everybody is on the web.

This means that there are plenty of people like you fighting for the mass pool of revenue from people who want to be on the web but want someone else to handle the bulk of the details.  You're getting started and are pretty confident that you can succeed.  You can, but to do so you will need to avoid some beginner errors.  Let's take a look at them:

Don't hide the host

It's a beginner's fear that if their end user were to know about the web hosting company that you are working with that they will leave you and just host directly with them.  This is an irrational fear for several reasons.

First, the reason they are with you typically is that they don't want to think about the technical side of things.  Knowing who you are using won't change that; they still want you to do the dirty work.  Second, even if they could do it themselves, there are things that you are (or should be) bringing to the table that they will want an expert handling (see more about that below).  Finally, instead of looking at it as a liability, you can use the strength of your web host's services to more strongly sell your own: you are contracting with them after all, and you can thus make that part of your pitch.  You are working with the best to give your customer the best.

Offer more than hosting

As alluded to above, if you are reselling you should optimally be doing more than just reselling space.  If that is all you are doing then the fear that your customer will cut out the middle man (you) might be more justified.  But there are a world of services that you can easily be offering that will ensure this thought doesn't enter your client's mind.  Marketing, domain name registration and maintenance, design, programming, language support (both spoken and electronic), SEO, and more. There is world of common services that you can add to yours that will make what you have to offer more than the customer would get just by hosting their site directly.

Honesty is the best policy

Finally, let us remember that, despite some rumors to the contrary, the business world does have an ethical code.  Being open with your client at all times about what you are doing is the best way to make sure that not only you keep them but, if they do change their mind later, that they leave you with your good name intact, meaning the new referrals will keep coming your way.  Especially in the information age this is critical.  Bad reviews are easy as pie to post, and difficult to make go away.

These are easy mistakes to avoid, but you would be surprised how many resellers still make them.  Don't do so yourself, and this will be their loss, not yours.

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