Last Updated: May 23, 2012

May 09, 2011

How to Be in the 10% of Successful Hosting Resellers

The web hosting industry is constantly expanding an exponential rate, as more business owners realize the benefits of expanding their marketing outreach to the World Wide Web. Each year more people are becoming resellers in hopes of earning some of the tremendous profits that are being enjoyed by Web hosting companies with relatively little effort. Unfortunately, 90% of aspiring resellers never solicit client bases large enough to generate a residual monthly income. Although reseller hosting plans provide all of the tools and resources needed to create a successful hosting site and attract prospective customers, they do not provide the esoteric and essential knowledge needed to avoid some of the most common pitfalls associated with reseller hosting. Consider the following mistakes made by 90% of hosting resellers to become one of the 10% of successful resellers.

Focusing Too Much on Price

Most resellers believe that their hosting plans will not sell well unless they are competitively priced, however within today's hosting industry it is nearly impossible to compete with some of the larger hosting providers. By dwelling too much on offering the lowest prices resellers fail to realize the most important aspects of building a client base, and ultimately decrease their own profit margins in an effort to undercut the very hosting companies that are providing their server resources. Instead of focusing solely on price, hosting resellers should focus on plan capabilities, names, and resource allocation, as well as bundling services to provide a unique value that competitors do not yet offer. In fact, the most successful hosting resellers already have established web-based businesses (i.e. – programmers, content developers, and search engine optimization specialists).

Spending Too Much Time Building a Website

While having a professional hosting site is definitely important, most reseller hosting plans include site builder applications that are complete with thousands of predesigned templates, which can be used to establish an effective site within just a couple of minutes. Regardless of how well your site is designed, the success of your hosting company will ultimately rely on your ability to solicit new customers and deal with current clients. In other words, diversifying advertising efforts and focusing on business expansion is far more important than designing interactive and visually appealing webpages that cannot possibly compete with some of the more established hosting providers' websites.

Neglecting Advertising Venues

Most novice resellers focus on one to three advertising venues, usually including pay per click advertising (i.e. – Google AdSense), banner advertising (in which banners are placed on relative hosting sites), and using word-of-mouth webmaster forums. While these three advertising venues can certainly bring success if utilized properly and diligently, for maximum results webmasters should pursue creative advertising techniques, such as approaching local business owners by finding their contact details through online and local business directories. By marketing to a client base that has not yet expanded their outreach into the online industry, resellers can maximize their chances of converting leads into sales.

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