Reseller Hosting Will Be a Great Venture
Monday, January 19th, 2009 Subscribe To Our Feed
When someone has a reseller hosting account with a web server hosting provider, the reseller has the right to use the resources that they buy each month and repackage and sell those hosting services to their own clients. These third party clients of the reseller do not deal directly with the hosting provider, only the reseller. The web server hosting is purchased at a wholesale price by the reseller, and is resold to the customer for profit.
Users of reseller web hosting plans are simply entrepreneurs who are acting as middlemen. They offer the hosting services that they have leased from another web host’s server rather than purchasing and maintaining their own equipment. Most of the time, the quality of services that are offered by resellers is so good that the consumer is not aware that they are dealing with resellers who do not own their own web servers. Because they can pick and choose from many dedicated hosting services, the resellers are in a position to provide their customers with the best of web server hosting plans.
There are many reseller hosting businesses that are quite successful and profitable, and anyone who understands the margins and the numbers can turn some profit in this way. The basis of the profit comes from the fact that a reseller can purchase, for example, approximately 1,000 MB of hard drive space from their web server hosting provider for about $25 a month. They can then repackage that allotment of resources into smaller packages for numerous customers.
It is typical to be able to sell a web hosting plan that provides people with about 25 MB of space for a price of about $5 per month. The reseller then has the ability to create 40 hosting packages, and the monthly income could be about $200. While this is not a huge amount, it is basically turning a $25 per month investment into $200, and this process can be repeated to support as many customers as the reseller is able to find.
Often, when a new hosting company is first starting out, there isn’t enough capital to provide the necessary round the clock server maintenance, in addition to trying to market and grow their new web server hosting venture. In this case, a new hosting company can start out as a reseller of hosting services and operate that way indefinitely, or until they have enough customers and revenue to justify the capital expenditures to purchase their own dedicated web servers, and hire the support staff to manage and troubleshoot the equipment.
In most cases, the reseller hosting accounts that are purchased through the major web server hosting companies allows the reseller to customize the web hosting plans that they will resell to their customers. In addition, the resellers can “brand” the resell site and control panels of the hosting account so that they can build their name recognition with their customers.
Check out best reseller web hosting for more information
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