Reseller hosting is the new and trending online-income business. The business does not require large investment or technical skills and hence could be done by anyone. However, the competition as of now remains low in this field. It is ideal for people who want to become their own boss or for those who are waiting to make a safe income on the side.
What is Reseller hosting?
Reseller hosting is a webhosting business with a simpler concept. A larger firm rents out a part of their disk space and bandwidth to an individual. The individual who acquired the package will separate it into several smaller packages and then resell it to his/her own clients at a cheaper rate. This idea of reselling known as the Reseller Hosting.
Reseller hosting business allows you to become a middleman between the web host and clients. Although the separated packages are sold for a lower price, the collective sum would eventually add up, reaching a higher price and generating a profit. Many companies at present offer reseller hosting with unlimited hosting options. However, this is based on pre-paid principle, which is often becomes a trouble against budget plans. Finding clients beforehand would solve this issue.
The hosting service is a potential source of income. It exhibits demand in a wide range of clients. Most business of these days have an imminent need to host their website, least in a smaller scale. Hence, a reseller hosting service which is normally at a cheaper rate makes more attractive to all these clients.
Advantages of reseller hosting
No technical knowledge required. Only smart business sense.
No expensive equipment or tools needed.
No server maintenance required. Server and all related issues are handled by the company.
No workspace required – can work even from home.
Faster return of investment.
Disadvantages of reseller hosting
Advertising costs. Hard to compete in advertising against larger firms.
Take accountability. Advising clients with technical and customer service support.
Types of reseller hosting
Affiliate level is another form of hosting. The reseller advertises the hosting company acting more like an agent. Customers contact the webhost through the reseller and obtain the service directly from the host. The reseller obtain a small commission for the advertising efforts.
This is another form of reselling where the reseller acts as a marketer for the company. Customers purchase the service from the reseller, but will be dealt with the company afterwards. The reseller will not deal nor will take responsibility for any customer support, technical issues, or complaints.
This is the most known form of reseller hosting. The reseller will take the risk of buying the package from the main host and sell it to customers. No portion of the amount paid for the reseller will be given to the main host except for the agreed rental fees. Customers will contact the reseller directly to sort out any technical issues.
It would be a good idea, when looking at becoming a reseller hosting provider to look into specializing in the services you offer, rather than over offering services in a wider range, especially if you’re just one person. Whatever reseller-hosting method you decide to choose, if done right you will be able to make a lot of money with very little cost.