Friday, September 9, 2011

What is reseller hosting?

Everyone is looking for new ways to make money online these days, web hosting is one way you can make passive income to help pay the bills. There are many established web hosting companies offering "reseller hosting" packages that allow you to become your own web host and offer hosting services to your own clientele. Basically you set up your own hosting package that includes a certain amount of
bandwidth and storage space, then you can sub-divide that package into smaller hosting plans for your own clients.

What are some of the benefits of reseller hosting?
Unlike most business models, reselling hosting services has almost no overhead whatsoever so you can get started right away without having the initial costs that usually come with a traditional business. There is no need to pay rent for commercial space, no need for employees, and no need to purchase any type of equipment like servers or state-of-the-art computers. The infrastructure is in place already, the established web host has their own team of technical experts charged with the task of ensuring that the servers are working and that the service is available at all times.

Most hosting companies allow you to quickly and easily set up new accounts for your customers, so they each have control of their own cpanel. Even the billing of your customers is made effortless with assorted customer billing systems, that way you can easily receive your monthly payments through a service like PayPal.
So bottom line, as a reseller it is very attainable to be profitable even on a very small scale and as your customer-base grows so will your profits.

What are the challenges of being a reseller?
The main challenge in reselling is acquiring new customers, the web hosting market is extremely competitive and the is no shortage of web hosting companies to choose from. What many people do is provide hosting services within their own network of family and friends. Another option is to avoid the over saturated hosting advertising online by simply advertising locally in media like local newspapers.
You don't need hundreds of customers to turn a profit, your company can be as big or as small you you want.

Does this actually make money?
Start out small with a few customers and make some passive income, even with just a couple of customers you can get your own hosting payed for and maybe make a little money in the meantime. You can start out with a standard $24.95/mo reseller plan, which would provide you with 250GB of bandwidth and sub-divide it in amounts that make sense for your customers. You can upgrade your plan easily if
you outgrow it, allowing you to grow incrementally as your customer-base grows.

For Example: If you have a reseller account at $24.95/mo and 250 GB of bandwidth, you can easily sub-divide that into 15 hosting packages for $10/mo (each account gets over 16GB of bandwidth/mo). Your investment of $24.95 just became $150 with very little effort. Even on this small scale, that's $1500 of profit for the year AND no charge to host your own websites. Not bad!

Now go out there and make some money! This is a great way for you to generate passive monthly revenue without having to spend all the time and effort to maintain a traditional business.

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