Best Startup
Without making things too complicated, a hosting reseller basically rents server space from a larger company, then rents it in turn to other companies using another brand name. The original hosting provider does most of the work, so it’s easy to get started.
There are many reasons to set up a reseller business in 2023. Digital businesses, in particular, will find it an excellent source of additional revenue. Adding web hosting under your name makes perfect sense if you’re already providing web design or development services.
You don’t have to be an expert
You don’t need much technical knowledge to get started. Usually, the reselling experience is very easy, even for a complete novice.
It’s not expensive
When you consider reseller web hosting’s costs, you’ll find they are far lower than what you’d need to start another type of business. It’s simple to scale your new business to match your aims and your budget.
Other pluses
- There are dozens of hosting partners to choose from
- It’s easy to set up
- It can be a lucrative additional revenue stream
- You can customize packages to fit your niche
Minuses
- You can lose clients if the main provider performs poorly
- You don’t have full control over the back-end
Startup Costs
Starting a reseller hosting business has many advantages, not least of which are the very low setup fees. You can rent a server from an established hosting business and benefit from its intuitive interface and tutorials. As this is a competitive market, however, you must have a good grasp of the industry and what there is demand for to stay abreast of the competition.
What’s more, you need to dedicate time to marketing and branding, as you will not have full control over website hosting.
You’ll need to work very hard to see good returns from your future web hosting business. On the plus side, most of your clients will be making monthly installment payments based on your various reseller packages. Most resellers will have no problem budgeting if they know what to expect.
The main challenge with this business lies in keeping existing customers and getting new ones. Here are a few things to take into account before getting started.
Define a brand
To define your brand, you must possess in-depth knowledge of the web hosting market. Be certain of your reasons for wanting to become a reseller. Perhaps you want to provide the best customer service out there, or you’re an internet professional who saw that small enterprises are paying too much for hosting.
You need to differentiate yourself. The best way to achieve that is by setting a lower price point, offering better customer service, or having a new and innovative feature or function. You can have another unique selling point, like being a green hosting provider.
Find a niche
There are already hundreds of web hosting providers offering generic services. Those who have succeeded in the market did so by finding a niche. You might wish to focus on hosting for a specific type of customer, like startups only, or on becoming a carbon-neutral service provider. Whatever your niche, it’s crucial to discover it.
How much will you pay?
Your budget depends on what security measures you’ll apply, how much server space you rent, and what type of hosting you provide – shared, cloud, etc.
Choose a customer service model
The most popular support channels are live chat, phone, and email. Ideally, you’ll have all three. A 24/7 live chat is a good idea because you might have customers with urgent issues. For less pressing ones, an email ticket should suffice as a support option, provided you don’t take too long to reply.
To bring in clients, create a website that displays your services. It will be the main way consumers find you. The website should provide details of your hosting packages and support.
Develop a memorable logo and invest in promotional materials. This may include making flyers, business cards, and other promotional materials to draw attention.
Remember to leverage the power of social media to advertise your new hosting business and services.
