Reseller Hosting business came into trend some 10 years ago. In this model, the reseller purchases reseller hosting packages from the web hosting company and then sells it to a niche crowd after branding them as their own hosting packages. The history of this model traces back when hiring a dedicated physical server was very expensive, so clients began sharing the server for cost optimization. The reselling business lost its touch of late with the emergence of VPS Hosting and Cloud Hosting technologies, but still, it can be used as a profitable business if done correctly.
What is Reseller Hosting?
Reseller web hosting allows a client to re-brand their allotted bandwidth and disk space, sell them to end-users, and make profits. The reseller purchases the host’s services in bulk and then sells it to the end customer with a marked-up price.
Hosting Provider —————> small/mid-size reseller business —————–> end user.
Strategies to start a new reselling business
1. Research and select a hosting company
There are many hosting companies in the market offering varied benefits. Choose the company that serves the requirements of your business goals and offers 24/7 customer support as you would need them to answer your client’s queries. Be sure to read reviews and testimonials of the company before zeroing in on one.
2. Know your customer better
Choose a target audience with relatively fewer competitors. The probability of being successful is higher for a niche audience rather than general hosting sales. Targeting and marketing is a crucial factor that shall be thoroughly researched before starting the reselling business.
3. Learn from your competitors
Read reviews about your competitors and note down the pain-points their customers are facing. Try finding a solution and add them to your hosting plans to make it unique.
4. Branding and white labelling
Create a creative logo and brand name for your business. It should reflect the field of your expertise or niche. Also, make sure that the host provider supports white labelling. White labelling helps your brand name flourish as the host company’s name is not shown anywhere in the control panel.
5. Create your own packages
After getting reseller hosting packages, you need to create your own packages for the clients. Take reference from your competitors to settle for market competitive prices.
6. Work on secured payment gateways
Modern websites require highly secured payment gateways. Offer a variety of options to make the payment so the client can choose the most reliable one.
7. Create a buzz
Marketing your product on social media is a great way to make your brand famous even before launching the business. Create Google and Facebook Ads to promote and target a niche audience.
8. Start Earning
Follow the above steps and start making profits in no time.
The best thing about this business is that it requires minimum technical knowledge. You don’t need to be a technical expert for doing this business as all the “dirty” backend work is handled by the provider. This leaves you enough space to concentrate on the marketing and selling aspects of the business. However, it would be a good idea to do some technical research so that you get the best technical support from your provider.