for more articles
The term Reseller according to the dictionary means to sell again i.e. to
sell a product or service to the public or to an end user,
especially as an authorized dealer, while making sure that you
make a profit on the sale.
Reseller hosting is no different either, a reseller buys a Web hosting
package from a hosting company and tries to sell it
independently. The profit for the reseller lies in either the
discount or in the commission s/he gets from selling an account.
For example: The reseller might purchase a package whose features are valued
at $100 for $90. So, the reseller stands to make a $10 profit on
selling the package to customers. Normally as the customers
increase, so does the profit margin for the reseller.
Or, you can get some money by earning commissions from a hosting company.
This happens when you refer potential customers to the hosting
company. If the customer signs up with the company then you earn
a small recurring commission until the customer uses the
Most web hosting companies try to outsource their services to resellers as
it helps them to extend their business reach without the cost of
marketing and sales and also helps them to concentrate on the
business side of things.
What can be resold
As a reseller you can decide what kinds of services you can sell.
You can provide shared, dedicated or co-location web hosting or merchant
accounts, store fronts etc.
If you go with hosting then it might be useful to offer some other hosting
related services like domain names, search engines etc.
Of course, if you have problems selling these value added services in the
beginning then you can sell them later.
The cost and resources involved
The cost of becoming a reseller and the equipment and people required in
order to be successful depends on many factors.
If you just plan to earn commission by referring people to the hosting
company by using the Internet, then you do not have to put up a
lot of money, all you need is an Internet ready PC and an
For a small start-up not a lot of money and resources are required. You can
purchase a good reseller package from a hosting company by
paying them some money upfront. All that is needed is a decent
computer that can manage the accounts of customers and a good
It is advisable to start small if you are very new to the concept of web
hosting and reselling. Then you can expand as you go on and
start getting more and more customers in which case offering
domain registration is also a very good way to make profits.
If you have the money and the experience then you can go as far as buying
all the server equipment required, in which case you will also
be responsible for all the server maintenance costs.
The other option could be leasing a server as this will be cheaper than
buying the server, but here as well you are responsible for all
the maintenance and running costs of the server.
In the above two cases you also need to make sure that you have multiple
connections with the hosting company so there are no
complications in case a connection goes down.
The best thing about being a reseller is that you do not require a lot of
There is no need to have a lot of technical knowledge. Account management
and Internet skills are all that is required. However, it would
be really handy if you have some sales and marketing experience
so you can interact with your customers better.
The hosting company generally provides and maintains all the hardware and
You do not need to hire a lot of IT staff to provide support. Providing
basic support and leaving the more technical issues to the
parent company support staff can be easily achieved.
Support can sometimes be delayed, as you are dependent on the parent company
to handle the technical aspects. If there is a delay from their
side then you along with your customer are affected.
Sometimes customers leave you if they find out that you are a reseller and
not a real hosting company.
Tips for marketing yourself
If you are starting out on a small scale then visiting message boards and
posting your services there is a good idea. A lot of potential
clientele with relatively small hosting needs also frequent
message boards and outline their desired services.
Having contests is a great idea for bringing awareness and interest about
Online ad campaigns, signatures, and text links are very helpful techniques.
Once you have gotten a bigger budget then you can go for Google ad words or
PPC search engines.
The best strategy is to try out various combinations of these approaches and
work out the best one for your needs.
About the author:
By Ashish Jain