Web Hosting Reviews & Ratings

December 21, 2010

Reseller Hosting and Things To Avoid

If you’re looking to start up a hosting company, chances are you’re talking about reseller hosting.  Reseller hosting is a small business venue that seems to really be making a move due to the minimal effort involved in startup. Reseller hosting plans are easy to find and the management of these plans is extremely simple due to the help of modern day server management panels. However, although it’s easy to set up and run, there are a few things you should avoid when running a reseller hosting company.

Not Buying a Proper Plan

A lot of new hosting sellers will attempt to minimize their risk in the beginning by buying a small hosting plan from a reseller. While this may make sense in the beginning, lower costs yielding higher profits, most things in the server world are priced on quality.  Having said that, these are not neccessarily bad plans to start with.  Pay attention to the pricing scheme and ask questions about upgrading. All this information will help you pick your first plan. The idea is to grow your business. It is important to understand what cost will be associated with that growth. However, you also don’t want to buy such a large plan that you can’t afford it in the long run.

Making It All Back In One Instance

Don’t try and make all your money with one customer. This may seem obvious but it happens often. Many resellers will take this approach and assume that higher prices and a few customers is more ideal than lower prices and more customers. The reality is, however, that higher prices will cause some clients to look for deals elsewhere and eventually move to those deals. Lower prices will ensure customers stick around. You may not make all of your money back in the first month, but you will be set up for continued growth of a client base.

Something Different

There are many hosting companies out there. However, there are very few unique ones. Uniqueness is what drives a small business to be better than its counterpart. You can be unique in a couple of ways. First, brand yourself.  Come up with a name and a brand and stick with it. Second, try offering extra services like web page design and SEO efforts. All of these things can make you different from your competition.

Starting a hosting company can be a great way to make more money. Just be sure you really think about your business and where you want it to go before you get started. Get the proper plan and set the proper prices and watch the residual income roll in.

Tags: reseller hosting,  reseller hosting account,  web hosting plan,  server management,  reseller hosting plans