Is Reseller Hosting Worth it?
Not everyone who starts a reseller hosting company will find it worthwhile.
11:18 17 September 2020
The answer to the question “is reseller hosting worth it” is subjective. For example, it depends on whether the prospective business owner is willing to invest time and allocate resources. It also depends on whether the reseller host has enough clients to see a return on investment. Ultimately, it’s up to the prospective reseller host to decide whether the pros outweigh the cons.
How Reseller Hosting Can Make You Money
The monthly fee for a hosting reseller plan can be inexpensive. To quote Oregon Marketing Pros owner Ryan Mallory, who used Greengeeks Reseller Hosting: “I was pretty taken back by it being so cost-efficient.” By that, he means that reseller hosting is cost-efficient when the monthly cost of your reseller plan is offset by your income. Your income will come from the monthly fee you’ll charge your clients. Therefore, the more clients you have, the more money you’ll make. Ultimately, the appeal of owning a reseller hosting company is the potential for a high-profit margin.
How Reseller Hosting Works
Overall, the way reseller hosting works is that you pay a hosting company a monthly fee to use its hardware. Then, you find customers to buy web hosting from you. The service is generally white-label, meaning that you can use your own brand for marketing. Since your income depends on the number of clients you have, it’s helpful to have marketing expertise. That’s not to say that you need to have marketing experience to run a hosting reseller business. You can hire people with a marketing background, or you can take the time to develop marketing skills.
How Reseller Hosting Can Go Wrong
Reseller hosting can go wrong if you choose a hosting provider that does not perform well. For example, you could choose a web hosting provider that does not make uptime a priority. Consequently, your customers will bear the brunt of that because their websites will crash. The web hosting provider is in charge of solving problems with the hardware. Therefore, you and your clients are dependent on the hosting service provider to troubleshoot. If your clients run into technical problems, it can reflect poorly on your company. In response, your clients may leave bad reviews online that could inhibit you from growing your client base.
If you do not have enough clients, you will not cover the cost of your hosting plan. In this case, you’ll realize that your reseller business does not have longevity. One reason for this could be that you do not have an effective marketing strategy.
How you can ensure things work out
Since the hosting reseller market is competitive, it’s imperative to specialize. You’ll need to sell your company’s strengths in order to compete. If you do not have a specific approach, it will be difficult to convince clients to choose you over signing up with a mainstream web hosting provider.
It’s easy to gauge whether you want to commit to reseller hosting if you create a plan first. If you write out a budget, it will help you decide if the business is feasible. It’s also necessary to have a business strategy.
It’s important to find a high-quality web hosting. One way to ensure that you do is to take advantage of the 30-day trials that most web hosting providers offer. Then, you can test whether you want to commit to a reseller plan.
If you already own a business that needs web hosting, it’s sensible to start a reseller company. For one, it’s a way to pay less money for high-quality web hosting. For example, maybe you already want to invest in a dedicated server for your business. Signing up for a reseller hosting plan can be an inexpensive option. Even if you do not save on costs initially, you will make an income from your clients who use your web hosting. Ideally, you would eventually have a passive income alongside your main source of income.
It’s an advantage to have technical expertise, especially from a marketing standpoint. That’s because you can easily demonstrate to your customers that you understand their needs. Additionally, you’ll be able to offer customer support. Ultimately, you’ll rely on your hosting provider to solve hardware problems. However, you can effectively placate your clients if you properly troubleshoot. One way to do this is to set up a support line. If you’re not comfortable acquiring technical knowledge or hiring technical staff, maybe it’s not worth it to start a reseller business.
It’s in your best interest to the network. You may need business owners to refer clients to you.
You can talk to business owners and have prospective clients lined up before you even start your reseller hosting company. It’s not a bad idea to get a sense of whether people will sign on to your business before you spend time and money.