Airbnb and Uber reached tremendous levels of success because they used property already bought and paid for by their users. This’s similar to reseller hosting, which allows you to borrow resources of an established web hosting company and sell their services as your own.
Many people don’t know web host reseller packages are available. They’re so preoccupied with building their website they don’t realize they can turn a profit from selling hosting services themselves. So, who can benefit from reseller hosting?
First of all, it’s important to distinguish between shared vs. reseller hosting. It’s an easy mistake to make because of the same infrastructure involved.
Shared hosting is one physical server that hosts multiple websites to host their customer’s websites. If you want to start your own web hosting business to make money, reseller hosting is what you want, not shared hosting.
Are you a web designer or developer with clients? How about a recent tech graduate with a lot of potentials? Maybe you’re just tired of the daily grind and want to diversify your cash flow. You can purchase a bulk of the amount of hosting space and then resell it at a healthy profit. People love this because there are almost no upfront costs or software licenses.
No one is too late to hit the market. Let’s cover what you need to know to hit the deck running.
Who Benefits from Reselling Web Hosting?
If you want to offset hosting costs, grow a side business, or you’re just passionate about reselling, web hosting can be a fruitful business.
This segment of the industry doesn’t maintain a high cost of entry for professionals or beginners. This is especially true when you compare the cost of reselling to beginning a brand new web hosting service.
Don’t worry about having a small pool of clients, tailoring your reseller plan with a pricing plan that feels for customers can quickly turn into monthly revenue because a happy customer is a loyal customer. It’s important to manage reseller hosting as a business like you would operate any other venture. This includes understanding market share or service conditions, competition, industry trends, revenue targets, and all the usual suspects.
Paying close attention to what your customers want means you need to price your services to be alluring yet practical for your expenses.
Who are Your Customers?
Sometimes newcomers believe reselling web hosting means targeting web users that aren’t using major hosting services. It’s a fair point, but it shouldn’t deter your goal.
Yes, reselling usually means there’s no need to hook up a server, run a network, start a hosting company, and wait for all the web walkers to line up for your service. This doesn’t always mean established web hosts have way more credibility. Your target market is diverse, and their needs don’t always align with the big players out there.
Many understand the value of creating their website these days. From freelancers and developers to web businesses and software communities, your client portfolio can consist of many customers from all walks of life.
Questions to ask yourself when targeting your market:
- How do they like to communicate with hosting providers?
- Do they want their website to look a certain way?
- Do they want to avoid technical features?
- Do they prefer advanced features?
- What pain points can your service solve?
Showing customers how well you understand their needs can make your service more suitable than seasoned web host service providers.
This doesn’t mean clinging to a target market that relates to you. There’s a community that matches your niche across multiple countries just waiting to make the jump with the right push.
For example, an IT director creates a new SaaS product to help professionals manage files across every mobile device. Sounds very specific, right? Not really. Your reselling business can adhere to professionals that already have a full-time job. So how can your reseller service help someone who doesn’t have all the time in the world to market their product or service?
If running multiple sites sounds like a worthwhile business, the growth and revenue opportunity can go as far as you can take it – despite how competitive the market seems.
All entrepreneurs alike shouldn’t underestimate the value of reseller web hosting by providing essential value to their clients.