Before we discuss how you can make money reselling hosting, let’s talk a little bit about how reselling actually works. Every site needs space and bandwidth, and this space and bandwidth usually comes from dedicated servers run by vast companies. Since these companies are not always able to sell out all the bandwidth on their servers, they are often willing to allow middlemen, also called resellers, a piece of the proverbial pie in order to maximize their sales of web space.
The reseller purchases a block of bandwidth and space from the parent hosting company for a fixed price, for example, for about one hundred dollars annually. The reseller then takes that space, breaks it up into ten or twenty portions and sells each portion for something like twenty dollars annually. This is how they usually resell hosting. As you can see, depending upon how many lots of space a reseller sells, the profits can expend incrementally. It’s all about how good a salesmen a reseller is, the techniques the reseller uses and the knowledge that he or she has of the World Wide Web.
So obviously, if you’re going to be a success as a reseller, it is not enough to merely set up a reseller site and buy a block of space to resell hosting. You really need to understand that turning a profit means selling that space. This is the whole key to a successful reseller marketing strategy. Of course, there are a lot of factors that you might want to consider when searching for a good hosting company to buy your reseller space from, but really the most important thing is to have a good sales strategy.
I’ll be talking about a few sales strategies that might be useful for you if you are thinking to resell hosting, right here in this article. Now, one of the best strategies when reselling space is to have a few interesting websites that people will like to visit, and to maximize traffic on these sites. This isn’t as hard as you think, if you create the right ‘search engine optimized’ content for your sites, and more than that, ensure that the content is well written and truly valuable to the person reading it. If you intend to hire someone to write your content, makes sure that that someone will truly do a good job for you, by looking at a few examples of their past work. And even better idea than this is to start a forum, and to hire people to post the original topics and discussions on the forum. This is easier than you think – as a matter of fact, I personally know a guy who has build a perfectly profitable web business using just this model.
How does it work. It’s very simple. You put some original content on the forum, and offer people free web space so long as they make a certain minimum number of posts on your forum every week. This will draw people for free web hosting like flies to honey. Then all you need to do is capitalize on this. Offer a very basic space and bandwidth package for free, and all sorts of wonderful options if people pay a certain very nominal annual fee. This is an incredibly efficient way to enhance your business. Don’t look for too much profit in the beginning, but concentrate on just being able to break even.
In time, once you become recognized, both by people and by online search engines, once your business starts to increase, you can introduce an increasingly commercial business model. And don’t forget, there’s another source of income from setting up a reseller hosting this way – you can place ads on the free site you give out, as well as on your forum, and earn off those ads. The money coming in from the advertisements itself should allow you to break even, and your earning from reselling are pure gravy off the top.
One important hint for those who are going to resell hosting – as a reseller, you should cultivate a reputation for honesty, dedication, and for truly caring for your customers’ needs and of sincerely trying to give them the best deal possible. This is really the key to a successful reseller model, and especially if you want to shift from a low-priced beginners business model, to a high paying professional resellers business model. You have to win the trust of the people who will pay you their hard earned money for a presence on the world wide web.
One more thing that you absolutely must have is efficient customer support around the clock. Talk things over with your parent hosting company. Find out what systems they have in place and how they troubleshoot, and how they can help you solve issues as quickly as possible. Ultimately you might want to hire your own dedicated servers for your resellers business, but I wouldn’t recommend it to begin with, because a dedicated server becomes your own responsibility. Instead, find the best deal for bandwidth and space with the most reliable parent hosting company you can find, and never, ever forget, in a resellers business, the sales you generate are really everything, the ultimate key to your success.