Web Hosting Reviews & Ratings

September 28, 2010

Reseller Hosting – Tips for Higher Profits

Reseller hosting gives anyone the opportunity to form their own profitable web hosting company, by providing all of the tools and resources necessary to build a professional web hosting site, solicit new customers, and provide custom hosting plans to clients. If you want to catch a piece of the profitable web hosting industry then reseller hosting is by far the best way to do so without a substantial investment.

The Truth About reseller Hosting

Unfortunately, the majority of hosting resellers are not successful, and most of them never make enough to cover their initial investment, let alone pass the cost of the monthly hosting bills. Nonetheless, with the right techniques and selling strategies you can be one of the small percentage of people that own and operate a profitable reseller hosting business. The following information will help you maximize profits and make more from less with reseller hosting.

Buying in Bulk

Many people don't realize that the the primary reason their web hosting company fails is because they are unable to offer competitive pricing in an industry that is almost as competitive as the internet itself. The key to becoming a successful reseller quickly is stepping out on a limb and making that initial investment that will give you the server resources and flexibility needed to offer competitive plan pricing from the beginning.

By purchasing a larger reseller hosting plan you're acquiring more power at a lower relative price, which means you'll be able to divide your total resources into smaller plans that are incredibly affordable for the average webmaster. In fact, if you are willing to take a small enough profit, you can sell high volume because it is possible to offer plans that are amongst the lowest prices online. In fact, larger hosting companies sell hosting plans for higher prices than resellers in many cases.

Dividing Plans Properly

The most important aspect of being a reseller web host is providing plans that are powerful yet properly priced. To get an idea of the market value of hosting resources you should consider the prices of other popular web hosts. Try to offer plans that are different from anything else, yet still a good value for the cost. This will be beneficial because prospective clients will not be able to compare your plans to competitors in a straightforward fashion, instead they'll have to rely on the individual features  of your plan as an indicator of the overall value of your service.

For example, if your competitors are offering hosting plan that contains 30 GB of disk space and 500 GB of bandwidth for about $40 per month, then you could create a plan that contains 50 GB of disk space and 700 GB of bandwidth for $50 per month.  At this rate you would still make a small monthly profit off of each client, and your clients would view your company as offering the best value, based on their relative perception.

Tags: reseller hosting,  solicit customers,  custom hosting plans,  successful reseller