Starting a Web Hosting Reseller business is easy and requires minimal cost and basic technical know-how. However, the web hosting industry is competitive, and turning the Reseller Hosting business profitable would require careful planning. When you decide to sell web hosting services, you compete against hosting companies, other resellers, and affiliates. Hence, turning profits can be a challenge. In this article, we will offer tips to make your Reseller Hosting business profitable.
As a Hosting Reseller, you look at the best Reseller Hosting plans and choose the one that suits the needs of your target clients. You also ensure that you create packages after carefully analyzing what your clients expect from the hosting plan. While this can help you get started, here are some tips to help you create a profitable Reseller Hosting business.
Before we proceed, let us first answer the basic question – is Reseller Hosting still profitable? – Check out the following video:
Make your Reseller Hosting Business Profitable
1. Analyze the web hosting demand regularly
Ensuring profitability means having a regular business. Even if you have clients who are renewing their hosting plans with you, it is important to constantly look for new clients. Keep tabs on the demand and supply of web hosting services in your target market segment. This will help you create and launch hosting plans at the right time.
2. Calculate your running costs
When you launch a Reseller Hosting business, you don’t have to spend on the infrastructure needed to offer web hosting services. However, you will have other fixed costs like the cost of Hosting Reseller plans, operating costs, etc. If you want to make your Reseller Hosting business profitable, then you need to understand the running costs and price your hosting packages accordingly.
3. Keep track of your non-billable hours
As a Hosting Reseller, you are the first point of contact for your clients if they face any technical issues. While you might try to troubleshoot the issue, if the problem requires the intervention of the hosting company, then you need to coordinate with the company while keeping your client in the loop. This can take a lot of time that you cannot bill for. Keeping track of these non-billable hours can help you utilize your time optimally and focus on other important tasks to boost your revenue.
4. Price your hosting packages competitively
Many Hosting Resellers find this to be the most challenging part of establishing a profitable business. Since web hosting is a recurring cost for site owners, Hosting Resellers try to offer cheap hosting packages. Competing on price alone can be counterproductive since it can render the business unsustainable. Hence, it is important to ensure that you price your packages based on the features offered after considering all your costs and competition.
5. Create business partnerships
The best way to earn profits in any business is to ensure that you have a steady stream of new clients at minimal costs. Although marketing your reseller services can help, creating business partnerships can be a good strategy too. Look at businesses or service providers that site owners approach, like web designers, SEO agencies, etc., and get into a business agreement with them to get leads.
As mentioned before, starting a Reseller Hosting business has low barriers to entry. However, staying profitable requires a strategic approach. We hope that the tips mentioned above can help you make your reseller business profitable. Good Luck!