One of the benefits of becoming a hosting reseller is the ability to create recurring revenue. However, there are some things that you have to look out for when deciding to be a hosting reseller. This article will review what a hosting reseller is and how to become successful in this field.
What does it mean to be a hosting reseller?
A hosting reseller is someone who purchases wholesale hosting services from a verified web hosting provider. They then divide up and repackage the hosting services into individual packages that they then sell to their clients.
As a hosting reseller, you have the option of selecting an SSD reseller hosting plan. This type of hosting provides you with an SSD drive rather than an HDD drive. An SSD drive is faster than HDD, which reduces page loading times, it doesn’t break down easily, uses less power and improves SEO.
What you need to become a hosting reseller
Offer a Competitive Price
Given the somewhat saturated hosting market, one thing that will set you apart from your competitors is offering a reasonable price. This price should be better than prices offered by other businesses selling and reselling hosting services. However, it also needs to be high enough to provide you with a profit. Therefore, you should start by researching the different wholesale hosting providers and find one that offers the lowest price for the services you want. However, you should never compromise quality for price, so make sure to research the web host’s reputation and features thoroughly.
After you’ve selected a hosting provider, you need to figure out what’s the lowest price you can resell your hosting services for and still make a profit. If, for example, it costs you $100 a month for serving ten clients then you should resell this hosting for $20 a month, making you $100 in profit. If $20 a month is less than what your competitors are offering, then you’re all set.
Choose a Host with the Best Uptime
As we’ve mentioned, you never want to sacrifice quality for the price. Your customers will expect the hosting you offer them to be reliable, meaining you need to buy hosting from a provider that offers excellent uptime. Uptime is the amount of time that a company’s servers are known to be up and running without any issues. The higher the uptime rate, the more reliable the hosting service.
Select a Localhost
A localhost is a hosting company that operates a data center from a location that’s close to your customers. The closer your host’s data center is to your customers, the faster their websites will load. Fast loading speed is a crucial aspect of a website’s performance. In other words, a fast-loading website equals happy customers. If you mainly cater to people in North Carolina, you may want to select a host with a data center in this area.
Focus on a Niche Market
As a hosting reseller, you can’t compete with big hosting companies, so instead, you need to focus on appealing to a niche market, by offering specific services that the big companies don’t provide. These services should cover the needs of your target audience. For example, you might want to target small business owners in your hometown, which will allow you to put a local, friendly face to your services that other small businesses will appreciate.
The primary advantage of being a hosting reseller is the ability to create recurring revenue. However, the web hosting industry is vast, so to compete in this industry, you’ll need to do a few things.
For starters, you’ll need to offer a price that’s competitive in comparison to what other hosting providers are offering. However, you still need to ensure that you can offer great services and can make a profit. Therefore, you need to invest in wholesale hosting from a company with reliable uptime and the features that your customers want. You might also want to choose a host with a data center near your customers to ensure their websites load quickly. Lastly, you’ll want to target a niche audience to whom you can offer services designed to meet their needs. Doing so, you can compete against the more prominent companies that provide only general hosting services.