Webhosting

You’re the webmaster of more than one website. You design websites for clients. Your business needs more than one site. Is a web host reseller account for you?

1. Individuals or businesses with more than one website

If you have more than one website and the total disk space you need is 500 MB or more, you can benefit from having a reseller account. The cost for web hosting is lower than if you have individual accounts for each site. Also, you can adjust the disk space and bandwidth allocations for each site.

2. Related service providers

A reseller account is also useful for people who provide related services. If you’re a web designer, for example, why stop at designing sites? Provide your clients with web hosting under your company name, and you continue to earn revenue from your web design clients.

Let’s say that you pay $40 a month for a 3-GB reseller account. If you offer 30 100-MB packages at $7 a month, you could earn up to $170 a month (after subtracting your cost) from that reseller account. Add on additional services such as search engine optimization and website maintenance, and your revenue increases again.

Many resellers are entrepreneurs just like you. Most started their Web hosting companies from scratch or as a complement to other businesses.

About the author: Lois S. is a Technical Executive Writer for Website Source, Inc. http://www.websitesource.com. His established writing skills coupled with experience in the web hosting industry have provided internet professionals with marketing, product and service ideas for many years.

A web host reseller account is a web hosting account that allows you to create hosting packages to sell to your clients. You can also host multiple sites of your own using the disk space allotted to the one hosting account.

Typical features of web host reseller accounts:

They come with a reseller-level control panel that allows you to create your own packages.

You can allocate disk space and bandwidth to each site on the account and change the space and bandwidth specifications if the site’s needs change.

Most reseller accounts provide the option for private nameservers (also called private label, personalized nameservers, or virtual nameservers). For example, if your reseller account is with SomeName Hosting and your company name is ExampleName Services, your clients will enter ns1.examplename.com and ns2.examplename.com for the nameservers for their domains.

With a web host reseller account, you handle account setup, billing, and (usually) support for your clients. Your web host provider maintains the servers and answers your support questions.

While a few starter reseller hosting packages are as small as 500 MB, most reseller providers offer packages starting at 1 GB or larger. A range of packages is usually available, a few going as high as 30 GB of disk space.

About the author: Lois S. is a Technical Executive Writer for Website Source, Inc. http://www.websitesource.com. His established writing skills coupled with experience in the web hosting industry have provided internet professionals with marketing, product and service ideas for many years.

Reseller Defined:

The term Reseller according to the dictionary means to sell again i.e. to sell a product or service to the public or to an end user, especially as an authorized dealer, while making sure that you make a profit on the sale.

Reseller Hosting

Reseller hosting is no different either, a reseller buys a Web hosting package from a hosting company and tries to sell it independently. The profit for the reseller lies in either the discount or in the commission s/he gets from selling an account.

For example: The reseller might purchase a package whose features are valued at $100 for $90. So, the reseller stands to make a $10 profit on selling the package to customers. Normally as the customers increase, so does the profit margin for the reseller.

Or, you can get some money by earning commissions from a hosting company. This happens when you refer potential customers to the hosting company. If the customer signs up with the company then you earn a small recurring commission until the customer uses the services.

Most web hosting companies try to outsource their services to resellers as it helps them to extend their business reach without the cost of marketing and sales and also helps them to concentrate on the business side of things.

What can be resold

As a reseller you can decide what kinds of services you can sell. You can provide shared, dedicated or co-location web hosting or merchant accounts, store fronts etc.

If you go with hosting then it might be useful to offer some other hosting related services like domain names, search engines etc.

Of course, if you have problems selling these value added services in the beginning then you can sell them later.

The cost and resources involved

The cost of becoming a reseller and the equipment and people required in order to be successful depends on many factors.

If you just plan to earn commission by referring people to the hosting company by using the Internet, then you do not have to put up a lot of money, all you need is an Internet ready PC and an Internet connection.

For a small start-up not a lot of money and resources are required. You can purchase a good reseller package from a hosting company by paying them some money upfront. All that is needed is a decent computer that can manage the accounts of customers and a good Internet connection.

It is advisable to start small if you are very new to the concept of web hosting and reselling. Then you can expand as you go on and start getting more and more customers in which case offering domain registration is also a very good way to make profits.

If you have the money and the experience then you can go as far as buying all the server equipment required, in which case you will also be responsible for all the server maintenance costs.

The other option could be leasing a server as this will be cheaper than buying the server, but here as well you are responsible for all the maintenance and running costs of the server.

In the above two cases you also need to make sure that you have multiple connections with the hosting company so there are no complications in case a connection goes down.

Upside

The best thing about being a reseller is that you do not require a lot of upfront investment.

There is no need to have a lot of technical knowledge. Account management and Internet skills are all that is required. However, it would be really handy if you have some sales and marketing experience so you can interact with your customers better.

The hosting company generally provides and maintains all the hardware and software.

You do not need to hire a lot of IT staff to provide support. Providing basic support and leaving the more technical issues to the parent company support staff can be easily achieved.

Downside

Support can sometimes be delayed, as you are dependent on the parent company to handle the technical aspects. If there is a delay from their side then you along with your customer are affected.

Sometimes customers leave you if they find out that you are a reseller and not a real hosting company.

Tips for marketing yourself

If you are starting out on a small scale then visiting message boards and posting your services there is a good idea. A lot of potential clientele with relatively small hosting needs also frequent message boards and outline their desired services.

Having contests is a great idea for bringing awareness and interest about your services.

Online ad campaigns, signatures, and text links are very helpful techniques.

Once you have gotten a bigger budget then you can go for Google ad words or PPC search engines.

The best strategy is to try out various combinations of these approaches and work out the best one for your needs.

Ashish Jain
M6.Net

http://www.m6.net

Reseller webhosting can be a great way to earn some extra money on the side for your business or even a full time job once you get into it. Though this can be a great way to do business, it can come with some un-foreseen downsides, headaches and a whole lot more. Not to say that you can’t be successful at it, but you must first take the steps to assure that down the road it doesn’t ruin your business.

An important part when dealing with reseller hosting is that some of the control has been taking out of your hands. This is important because you have to trust in the company you are doing business with and this limits to some things you can do. I speak from personal experience on this, the worst thing you can face when reselling hosting is having a great amount of downtime. If you every want to have some bad emails from your clients, choose a host that doesn’t have good uptime.

How much uptime and downtime you have is really not for you to decide, as you are not the one looking over the server. The company you are going through may not be as professional as you and they figure what is a few hours of waiting to get your site up, Right? Wrong! The worse thing I have seen is clients sites going down and when you go to that company’s website who you do business with, all you think is “oh my, their site is down too and I can’t get in touch with them”. This can cause allot of headaches for your and your clients, it can even cost your business.

The best thing to do before going with a hosting company is to get a list of reference sites if you can, to see if they go down. Also watch the company’s site you are planning to go with and see if it ever goes down. If so, how quick does it come back up? Another great thing to do is ask around, if the company has good or bad service, then there will be people out there to comment on this, trust me. Also don’t be afraid to email those people who had a problem with that hosting company and ask them what exactly happened.

Also when dealing with a company, make sure they offer a good list of services and features that you can offer to your clients. Check with them to see how flexible they are with different scenarios as well as adding on new features. Remember a good company with go the extra mile to show you that they can be trusted.

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Anthony Jewell has over 6 Years experience in the Web & Graphics World. You can visit my business at http://www.logo2d.com

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