Reseller Hosting is one of the most lucrative businesses that lets you earn a passive or even a full-blown income by selling web hosting plans to your customers at a competitive rate. With minimal setup costs and moderate technical knowledge, you can start your own hosting business and earn a recurring income.
However, since it’s a competitive industry, you need to offer the right services, identify your business goals, and ensure several other things to stay ahead of the competition and make more money.
This article will walk you through some vital strategies that can help you stand apart from the crowd and attract more customers to your business. But first, let’s have a quick look into what Reseller Hosting is.
What is Reseller Hosting?
Reseller Hosting is a business where you buy server resources in bulk from a full-fledged hosting company, then use these resources to create your hosting plans, and sell these plans to your customers.
In the last two years, the global COVID-19 pandemic has led to an intense rise in the number of new websites, and the trend doesn’t look like it’s about to change. So, it’s the perfect time to start a Reseller Hosting business.
Let us see how can you set up and earn easily with Reseller Hosting.
How to Earn Money from Reseller Hosting
- Choose the right parent company
There are three imperative factors for the success of any hosting company—
- Performance: high-quality servers
- Reliability: high uptime guarantee
- Security: best-in-class cybersecurity provisions and failsafe hardware
Given that the parent company owns the servers and maintains them, it’s important to pick a company that delivers on these three important factors. As a Reseller Hosting provider, there’s not much that you can do about the hardware and how it’s maintained.
If you, or your hosting company, fail on any of the factors mentioned above, you can be sure that your customers will leave.
The best way to pick the right hosting company is to do a lot of research. Use independent review websites to see whether old and existing customers are happy with the brand. Also, don’t limit yourself to one website. Get as many viewpoints as you can.
As you do this, you’ll see some clear winners.
- Choose the right Reseller Hosting plan
The best way to pick the right Reseller Hosting plan is by making some realistic calculations.
Reseller Hosting plans are essentially a collection of server resources. Using these resources, you can make hosting plans of your own. As is obvious, the higher the number of resources you buy, the higher the price of the plan.
Before you buy a plan, make a realistic estimate of the number of customers you’re going to have in a period. Once that’s done, try to calculate the number of resources you’re going to need for the number of customers you’ve estimated.
Now pick a plan that best serves your estimation. You have to pay the hosting company irrespective of whether you have customers or not. So, it’s important to make a realistic estimation.
Upgrading a reseller account (scaling it up) is quite easy. So, as you get more customers, you can scale up the resources.
Also, look for a Reseller plan and provider that offer a wide range of support tools and applications to help you better manage your account and web hosting business.
- Pick a niche
Hosting isn’t a new, experimental business. It’s an established business with a robust profit model, meaning that there are already a lot of players. There are hundreds of hosting companies, and in essence, they’re all providing the same service — server resources.
Therefore, you must stand out from the competition. The best way to do that is by picking a niche and catering to the exact needs of that niche.
Each niche has specific requirements. For example, eCommerce websites are resource-rich, meaning that you can offer plans with many resources. Bloggers need barely any resources. The list goes on.
So, pick a niche, research the needs of that niche, and then create plans that cater to the needs of your target audience.
- Market your services at the right places
Marketing is important, of course, but what’s more important is that you market to the people who are more likely to opt for your products and services.
Let’s say you’ve picked the niche of tech startups — that’s the group that you want to sell to. LinkedIn is a much better marketing channel than, say, Instagram. For example, Instagram is a great marketing channel targeting bloggers.
The pith of the matter is quite simple. Make sure that you market to your target audience rather than carpet bombing ads on everyone. This way, your cost of acquisition will go down significantly.
- Customer service
If there’s only one thing that you’re willing to do for the success of your hosting business, let that be customer service.
One question that we’ve not answered in this article is about why Reseller Hosting is getting popular in the first place. After all, hosting companies own the servers and maintain them. So why are customers willing to spend more by buying a Reseller Hosting business hosting plan?
The answer is customer service. Many people who start websites aren’t experts on running a website or hosting. So, they’ll need a bit of handholding.
That’s where Reseller Hosting businesses come into the picture. Reseller Hosting businesses are usually run by small businesses that are more agile and flexible in their approach to customer support and can therefore go that extra mile to help customers. People are willing to pay for this extra support, and that’s why Reseller Hosting businesses are booming.
So, how do you nail customer support as a Reseller Hosting business?
Ensure that you always have at least two channels of communication. Social media is increasingly proving to be an excellent channel to help customers. Phone service, though expensive, is the most preferred by the customers. On the other hand, emails are evergreen, and chatbots are proving to be cheap and cheerful for small and common queries.
Pick at least two methods for customers to get in touch with you. Use good customer support software to ensure that you’re keeping track of all queries. Finally, of course, resolve issues as quickly as you can.
The fact is that customer support is still the most underwhelming aspect of any product for a lot of customers. So if you can change that, for the positive, you’ll see that not only will your customer retention rates increase, but you’ll acquire more customers.
Conclusion
Reseller Hosting is going through somewhat of a boom right now, and it’s a great time to get into the business. However, even if turning it into a profitable venture isn’t as easy and straightforward, many people have launched their own web hosting business to sell customised and personalised web hosting plans to their customers.
So, if you wish to get into the web hosting industry and make money with Reseller Hosting, make sure to implement the five tips and strategies mentioned above, including choosing the right hosting provider for your business.
At ResellerClub, we offer 24/7 on-call expert support with reliable hosting services and tools to make your web hosting journey seamless and convenient so you can focus on serving your customers and making more money. Check out our plans and select the one that best suits your business needs and requirements.
If you have any questions or suggestions, feel free to get in touch with us or drop a comment below!
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