Cross Cultural Advertising
by: Neil Payne
Culture is a like dropping an Alka-seltzer into a glass – you don’t see it, but somehow it does something.
Hans Magnus Enzensberger
Culture affects everything we do. This applies to all areas of human life from personal relationships to conducting business abroad. When interacting within our native cultures, culture acts as a framework of understanding. However, when interacting with different cultures this framework no longer applies due to cross cultural differences.
Cross cultural communication aims to help minimise the negative impact of cross cultural differences through building common frameworks for people of different cultures to interact within. In business, cross cultural solutions are applied in areas such as HR, team building, foreign trade, negotiations and website design.
Cross cultural communication solutions are also critical to effective cross cultural advertising. Services and products are usually designed and marketed at a domestic audience. When a product is then marketed at an international audience the same domestic advertising campaign abroad will in most cases be ineffective.
The essence of advertising is convincing people that a product is meant for them. By purchasing it, they will receive some benefit, whether it be lifestyle, status, convenience or financial. However, when an advertising campaign is taken abroad different values and perceptions as to what enhances status or gives convenience exist. These differences make the original advertising campaign defunct.
It is therefore critical to any cross cultural advertising campaign that an understanding of a particular culture is acquired. By way of highlighting areas of cross cultural differences in advertising a few examples shall be examined.
Language in Cross Cultural Advertising
It may seem somewhat obvious to state that language is key to effective cross cultural advertising. However, the fact that companies persistently fail to check linguistic implications of company or product names and slogans demonstrates that such issues are not being properly addressed.
The advertising world is littered with examples of linguistic cross cultural blunders. Of the more comical was Ford’s introduction of the ‘Pinto’ in Brazil. After seeing sales fail, they soon realised that this was due to the fact that Brazilians did not want to be seen driving a car meaning ‘tiny male genitals’.
Language must also be analysed for its cultural suitability. For example, the slogan employed by the computer games manufacturer, EA Sports, “Challenge Everything” raises grumbles of disapproval in religious or hierarchical societies where harmonious relationships are maintained through the values of respect and non-confrontation.
It is imperative therefore that language be examined carefully in any cross cultural advertising campaign
Communication Style in Cross Cultural Advertising
Understanding the way in which other cultures communicate allows the advertising campaign to speak to the potential customer in a way they understand and appreciate. For example, communication styles can be explicit or implicit. An explicit communicator (e.g. USA) assumes the listener is unaware of background information or related issues to the topic of discussion and therefore provides it themselves. Implicit communicators (e.g. Japan) assume the listener is well informed on the subject and minimises information relayed on the premise that the listener will understand from implication. An explicit communicator would find an implicit communication style vague, whereas an implicit communicator would find an explicit communication style exaggerated.
Colours, Numbers and Images in Cross Cultural Advertising
Even the simplest and most taken for granted aspects of advertising need to be inspected under a cross cultural microscope. Colours, numbers, symbols and images do not all translate well across cultures.
In some cultures there are lucky colours, such as red in China and unlucky colours, such as black in Japan. Some colours have certain significance; green is considered a special colour in Islam and some colours have tribal associations in parts of Africa.
Many hotels in the USA or UK do not have a room 13 or a 13th floor. Similarly, Nippon Airways in Japan do not have the seat numbers 4 or 9. If there are numbers with negative connotations abroad, presenting or packaging products in those numbers when advertising should be avoided.
Images are also culturally sensitive. Whereas it is common to see pictures of women in bikinis on advertising posters on the streets of London, such images would cause outrage in the Middle East.
Cultural Values in Cross Cultural Advertising
When advertising abroad, the cultural values underpinning the society must be analysed carefully. Is there a religion that is practised by the majority of the people? Is the society collectivist or individualist? Is it family orientated? Is it hierarchical? Is there a dominant political or economic ideology? All of these will impact an advertising campaign if left unexamined.
For example, advertising that focuses on individual success, independence and stressing the word “I” would be received negatively in countries where teamwork is considered a positive quality. Rebelliousness or lack of respect for authority should always be avoided in family orientated or hierarchical societies.
By way of conclusion, we can see that the principles of advertising run through to cross cultural advertising too. That is – know your market, what is attractive to them and what their aspirations are. Cross cultural advertising is simply about using common sense and analysing how the different elements of an advertising campaign are impacted by culture and modifying them to best speak to the target audience.
by Neil Payne
http://www.kwintessential.co.uk/cultural-services/cross-cultural-communication.html
Thursday, September 22, 2011
Digital Advertising
by: Nash Ville
Business establishments are busy places. People rush here and there. They are either waiting in line at the concession or in the lobby at intermission. Merchants try to attract customers using different kinds of advertising materials, static posters to be specific. How long will they look at these posters and get jaded? How can your message deliver the exact message and stand out from the crowd? The solution - put your advertising message in motion. With this, you’ll stop shoppers in their tracks with an exciting and attention-grabbing digital advertisement. Consider the fact that the visual appeal of moving or changing images is a proven to be very effective.
Digital Advertising via plasma display panels, liquid crystal displays, computer monitors, and televisions are used to enhance traditional advertising. Using computer-generated images for print advertising and large format graphics can be a unique way of showcasing your products. Is this the end of traditional advertising? Not at this point, maybe. There are still several enhancements that advertising experts are trying to generate about digital advertising.
Why do leaders in the printing, publishing and pre-press industries join forces to push the acceptance of the digital delivery of advertising materials and to document and demonstrate the advantages of the comprehensive digital advertising environment?
Digital advertising has been widely accepted because of its myriad advantages such as dynamic creative elements and interactivity, guaranteed delivery and scheduled display, multiple advertisers with no clutter, co-op revenue opportunities, instant digital changes for season, price, or promotion, rapid ability to update content, timely insertion of trailer loops with advertising content, instant digital programming with informative and entertaining content, and the ability to deliver specific messages to specific audiences in specific locations. It also helps to combine the industries of advertising networks and point of purchase display merchandising.
The impact of digital advertising is sensational - whether the presentation is on a single stand-alone floor display or a giant multi-screen format - messages can be delivered with energy, focus and entertainment. When digital advertisements are deployed in public spaces, they present compelling alternatives to traditional media. Digital advertising allows multiple clients to share valuable advertising space at reduced cost per exposure. It also drives them to search out new media alternatives to compliment their existing marketing plans. This tremendous versatility gives operators the option to choose the large format displays of their choice for the greatest impact in their venue.
The objective of the Digital Advertising Project to have its students recreate the effects in an interesting advertisement with a manipulated photo using their own images is a simple yet very valuable and timely means of promoting digital advertising. With this concept, they will be able to realize the importance of digital advertising in making our world a better place to live in. They will also be informed about the purposes of these advertisements in helping us out in choosing from a wide range of products that we need in our everyday existence – from the clothes we wear, the foods and the vitamins we eat and take, the best mobile service providers and banking institutions we use, etc. Truly, digital advertising is an innovation destined to become important.
The technology media cycle has really fascinated many advertising experts. Technology drives media, media drives societal growth, and marketers track societal growth in an attempt to take advantage of the advertising opportunities that new media presents. The commercial implication of a shift in media consumption patterns leads to a change in advertising spend patterns that turn into big money. Simply, the medium is what advertisers make of it – digital advertising offers a fresh set of opportunities.
This article is supplied by our team to propagate the advancement of poster printing technologies out in the market and may refer to other existing articles.
About the Author
For comments and questions about the article and the author you may contact The Large Format Posters Moderator at 888 888 4211 or visit http://www.largeformatposters.com
Business establishments are busy places. People rush here and there. They are either waiting in line at the concession or in the lobby at intermission. Merchants try to attract customers using different kinds of advertising materials, static posters to be specific. How long will they look at these posters and get jaded? How can your message deliver the exact message and stand out from the crowd? The solution - put your advertising message in motion. With this, you’ll stop shoppers in their tracks with an exciting and attention-grabbing digital advertisement. Consider the fact that the visual appeal of moving or changing images is a proven to be very effective.
Digital Advertising via plasma display panels, liquid crystal displays, computer monitors, and televisions are used to enhance traditional advertising. Using computer-generated images for print advertising and large format graphics can be a unique way of showcasing your products. Is this the end of traditional advertising? Not at this point, maybe. There are still several enhancements that advertising experts are trying to generate about digital advertising.
Why do leaders in the printing, publishing and pre-press industries join forces to push the acceptance of the digital delivery of advertising materials and to document and demonstrate the advantages of the comprehensive digital advertising environment?
Digital advertising has been widely accepted because of its myriad advantages such as dynamic creative elements and interactivity, guaranteed delivery and scheduled display, multiple advertisers with no clutter, co-op revenue opportunities, instant digital changes for season, price, or promotion, rapid ability to update content, timely insertion of trailer loops with advertising content, instant digital programming with informative and entertaining content, and the ability to deliver specific messages to specific audiences in specific locations. It also helps to combine the industries of advertising networks and point of purchase display merchandising.
The impact of digital advertising is sensational - whether the presentation is on a single stand-alone floor display or a giant multi-screen format - messages can be delivered with energy, focus and entertainment. When digital advertisements are deployed in public spaces, they present compelling alternatives to traditional media. Digital advertising allows multiple clients to share valuable advertising space at reduced cost per exposure. It also drives them to search out new media alternatives to compliment their existing marketing plans. This tremendous versatility gives operators the option to choose the large format displays of their choice for the greatest impact in their venue.
The objective of the Digital Advertising Project to have its students recreate the effects in an interesting advertisement with a manipulated photo using their own images is a simple yet very valuable and timely means of promoting digital advertising. With this concept, they will be able to realize the importance of digital advertising in making our world a better place to live in. They will also be informed about the purposes of these advertisements in helping us out in choosing from a wide range of products that we need in our everyday existence – from the clothes we wear, the foods and the vitamins we eat and take, the best mobile service providers and banking institutions we use, etc. Truly, digital advertising is an innovation destined to become important.
The technology media cycle has really fascinated many advertising experts. Technology drives media, media drives societal growth, and marketers track societal growth in an attempt to take advantage of the advertising opportunities that new media presents. The commercial implication of a shift in media consumption patterns leads to a change in advertising spend patterns that turn into big money. Simply, the medium is what advertisers make of it – digital advertising offers a fresh set of opportunities.
This article is supplied by our team to propagate the advancement of poster printing technologies out in the market and may refer to other existing articles.
About the Author
For comments and questions about the article and the author you may contact The Large Format Posters Moderator at 888 888 4211 or visit http://www.largeformatposters.com
Wednesday, September 21, 2011
3 Simple But Powerful Off-Line Advertising Strategies
There are several ways to advertise and get the word out about your business online and the best of them include f-ree search engines, pay per click search engines, writing articles, utilizing press releases, doing joint ventures/ad co-ops, and posting to message boards and forums related to your target market.
But one advertising method that's neglected by most online marketers is off-line advertising.
There are several low/no cost ways to advertise off-line and I want to share 3 of them with you.
1) Business Cards
If you are serious about your business you must have business cards. They are cheap and are a great way to attract potential prospects or customers. Simply hand them out to people who you feel may be interested in your business.
Also, whenever I visit a restaraunt, bar, or club, I'll leave my business cards in all of the bathroom stalls. (Just make sure nobody is in there of course... lol!)
And don't laugh at this! It really works. When I visit the bathroom an hour or two later, I'll find that all of my business cards are gone and I'll have a fresh new set of sales the very next day.
You can get f-ree professional looking business cards at VistaPrint.com, all you have to pay is shipping and handling:
http://www.vistaprint.com
2) Flyers
With today's technology, flyers are very easy to make. You can simply design a flyer online and just print it out and make copies. Then you can post them in area businesses where you feel your potential customers may hang out. (Just make sure you ask permission from the business owner.)
Or simply hand out your flyers to people you meet on the street. Many bars and clubs don't have a problem with posting flyers in their establishments either, especially if you are a patron.
And don't forget about supermarkets! Many have bulletin boards, at least here in New Jersey where I live, and you can post your flyer there. There are hundreds of people walking into supermarkets everyday and they are in a buying mentality. Take advantage of it and post your flyers often.
Here's a site that lets you create and print flyers or brochures online for f-ree:
http://www.mybrochuremaker.com/
3) Automobile Advertising
What... ? Yes you read that right! Your car is not only a driving vehicle but a great advertising vehicle as well. You can stick magnetic signs or plates on your car with your company name and/or domain name for all to see.
Your business can be exposed to hundreds, if not thousands of people everyday whether your car is parked, you are driving, or even when you are stuck in traffic. It's fairly inexpensive and a great way to "drive" home your message.
Here are a couple of sites to check out for this very sort of thing:
http://www.iditplates.net
http://www.magneticsigns.com
Those are just a few of the ways to advertise off-line. I'm sure you can come up with other clever ways as well.
You've got a brain... use it!
Al Martinovic runs a successful "niche" business at http://www.ineedsmokes.com and publishes a popular internet marketing newsletter at http://www.milleniummarketers.com
But one advertising method that's neglected by most online marketers is off-line advertising.
There are several low/no cost ways to advertise off-line and I want to share 3 of them with you.
1) Business Cards
If you are serious about your business you must have business cards. They are cheap and are a great way to attract potential prospects or customers. Simply hand them out to people who you feel may be interested in your business.
Also, whenever I visit a restaraunt, bar, or club, I'll leave my business cards in all of the bathroom stalls. (Just make sure nobody is in there of course... lol!)
And don't laugh at this! It really works. When I visit the bathroom an hour or two later, I'll find that all of my business cards are gone and I'll have a fresh new set of sales the very next day.
You can get f-ree professional looking business cards at VistaPrint.com, all you have to pay is shipping and handling:
http://www.vistaprint.com
2) Flyers
With today's technology, flyers are very easy to make. You can simply design a flyer online and just print it out and make copies. Then you can post them in area businesses where you feel your potential customers may hang out. (Just make sure you ask permission from the business owner.)
Or simply hand out your flyers to people you meet on the street. Many bars and clubs don't have a problem with posting flyers in their establishments either, especially if you are a patron.
And don't forget about supermarkets! Many have bulletin boards, at least here in New Jersey where I live, and you can post your flyer there. There are hundreds of people walking into supermarkets everyday and they are in a buying mentality. Take advantage of it and post your flyers often.
Here's a site that lets you create and print flyers or brochures online for f-ree:
http://www.mybrochuremaker.com/
3) Automobile Advertising
What... ? Yes you read that right! Your car is not only a driving vehicle but a great advertising vehicle as well. You can stick magnetic signs or plates on your car with your company name and/or domain name for all to see.
Your business can be exposed to hundreds, if not thousands of people everyday whether your car is parked, you are driving, or even when you are stuck in traffic. It's fairly inexpensive and a great way to "drive" home your message.
Here are a couple of sites to check out for this very sort of thing:
http://www.iditplates.net
http://www.magneticsigns.com
Those are just a few of the ways to advertise off-line. I'm sure you can come up with other clever ways as well.
You've got a brain... use it!
Al Martinovic runs a successful "niche" business at http://www.ineedsmokes.com and publishes a popular internet marketing newsletter at http://www.milleniummarketers.com
Tuesday, September 20, 2011
Go Daddy Domains Part 2
I just made the investment and purchased domain names from Go Daddy. It was very cheap and I got tons of extra features to get the ball rolling on my new websites. I bought a .com and a .org for $15 total. This blog will transfer over to my new sites as soon as I am done setting setting them up. I highly suggest getting your own website.
Friday, September 16, 2011
Ten Ways to Effectively Advertise
Found this article, and thought it was pretty good. Enjoy.
The goal of advertising is to cost-effectively reach a large audience and attract customers. If done correctly, advertising can enhance the success of your business. Here are 10 advertising tips to pay attention to:
1. Go after your target audience. An advertising campaign should be geared to your niche market. It is a common mistake to create generic ads that do not speak the language or grab the attention of your potential customers. For more information, read How to Identify and Reach Niche Markets for Your Business.
2. Highlight your competitive advantage. One of the keys to all advertising is to accentuate the pros of your company, those factors that give you your competitive edge. Too many ads are clever but fail to sell the benefits of the product or service.
3. Establish an image. You can recognize the McDonald's arches while whizzing by on the highway. Likewise, there are plenty of products that you recognize by their packaging or logo. Image counts when it comes to advertising and promoting your business. Too many advertisers do not work to build a consistent image. Check out Three Brand Identity Myths That Will Bring Your Business Down for additional issues to avoid.
4. You have to spend money to make money. There are ways to save money, but typically advertising is not the place to cut corners. It will affect sales, and that affects the bottom line. Successful advertising may cost some money, but that is because it works. Check out More Bang for Your Advertising Buck for cost-cutting tips that won't cut your goals.
5. Advertise in the right places. Your favorite magazine, radio station, or even television program might not be a favorite of your audience. Know what they read, watch, and listen to, and advertise in media that reaches your target market.
6. Don't allow your budget to run your advertising campaign. If you budget $5,000 per month for advertising, you've made it very easy from a bookkeeping perspective. However, if like most businesses you have seasonal highs and lows, you are spending too much money advertising during down times and not enough when you want to attract customers. Too many entrepreneurs do not budget according to their seasonal advertising needs.
7. Diversify. It is all too common for business owners to choose the best place to advertise based on price and potential rate of returns and then stop. As is the case with investing, you do not want to put all of your eggs in one basket. Spread your advertising dollars around.
8. Don't try to be everything to everyone. No product or service will appeal to everyone. Many business owners, including corporate executives, try to come up with ways to reach every market. Typically, this does not work. It can spell disaster for small businesses, who cannot afford to spread themselves too thin. Therefore, find your market and be everything you can be to that audience.
9. Test your ads in advance. If you have the time or money to invest in focus groups, you should test your ads on other people. Do they understand and accept the message that you are trying to convey? For further information, read Focus Groups: How They Can Work for Your Small Business. There are other less-expensive ways to test your ads as well: questionnaires, for example. The article Creating Questionnaires for Gathering Market Research can be helpful.
10. Monitor your ads. It is very easy to ask new customers or clients where they heard about you. As simple as this is, many entrepreneurs do not bother to do so. It is advantageous to know which ads generate business.
The goal of advertising is to cost-effectively reach a large audience and attract customers. If done correctly, advertising can enhance the success of your business. Here are 10 advertising tips to pay attention to:
1. Go after your target audience. An advertising campaign should be geared to your niche market. It is a common mistake to create generic ads that do not speak the language or grab the attention of your potential customers. For more information, read How to Identify and Reach Niche Markets for Your Business.
2. Highlight your competitive advantage. One of the keys to all advertising is to accentuate the pros of your company, those factors that give you your competitive edge. Too many ads are clever but fail to sell the benefits of the product or service.
3. Establish an image. You can recognize the McDonald's arches while whizzing by on the highway. Likewise, there are plenty of products that you recognize by their packaging or logo. Image counts when it comes to advertising and promoting your business. Too many advertisers do not work to build a consistent image. Check out Three Brand Identity Myths That Will Bring Your Business Down for additional issues to avoid.
4. You have to spend money to make money. There are ways to save money, but typically advertising is not the place to cut corners. It will affect sales, and that affects the bottom line. Successful advertising may cost some money, but that is because it works. Check out More Bang for Your Advertising Buck for cost-cutting tips that won't cut your goals.
5. Advertise in the right places. Your favorite magazine, radio station, or even television program might not be a favorite of your audience. Know what they read, watch, and listen to, and advertise in media that reaches your target market.
6. Don't allow your budget to run your advertising campaign. If you budget $5,000 per month for advertising, you've made it very easy from a bookkeeping perspective. However, if like most businesses you have seasonal highs and lows, you are spending too much money advertising during down times and not enough when you want to attract customers. Too many entrepreneurs do not budget according to their seasonal advertising needs.
7. Diversify. It is all too common for business owners to choose the best place to advertise based on price and potential rate of returns and then stop. As is the case with investing, you do not want to put all of your eggs in one basket. Spread your advertising dollars around.
8. Don't try to be everything to everyone. No product or service will appeal to everyone. Many business owners, including corporate executives, try to come up with ways to reach every market. Typically, this does not work. It can spell disaster for small businesses, who cannot afford to spread themselves too thin. Therefore, find your market and be everything you can be to that audience.
9. Test your ads in advance. If you have the time or money to invest in focus groups, you should test your ads on other people. Do they understand and accept the message that you are trying to convey? For further information, read Focus Groups: How They Can Work for Your Small Business. There are other less-expensive ways to test your ads as well: questionnaires, for example. The article Creating Questionnaires for Gathering Market Research can be helpful.
10. Monitor your ads. It is very easy to ask new customers or clients where they heard about you. As simple as this is, many entrepreneurs do not bother to do so. It is advantageous to know which ads generate business.
Wednesday, September 14, 2011
Go Daddy Domains
If you are looking for an alternative domain for you website, look into GoDaddy. Go daddy is known by many people because of the secy Super Bowl ads that we see every year. They are a very well known and trusted service. I looked into getting a domain from them for my this blog. The first thing I did when I went to the site was check to see domain availabilities. I typed "Howtoad" into the engine and it listed all the .addresses and their prices, making it easy to find one within my budget. The prices ranged from $1.99-29.99 /year, so their really is a domain for any budget. Th registration process is very quick an easy. They have a variety of upgrades to secure your website including certification, email hosting, web hosting (up to 250GB), advanced privacy settings and much more. They also offer domain package deals. For example you can purchase howtoad.info, and then claim howtoad.org and howtoad.net for just a few dollars more.
Go Daddy is probably the easiest place to register you domain and set up you website, and Danica Patrick makes it so much better. At Go Daddy, you can register a domain for up to 70% less than other registrars AND get hosting, an easy-to-use site-builder, personalized email account, blog/podcast tool, photo album and more - all absolutely FREE. They get you up and running on the Web for just the cost of your domain registration.
I will likely register a domain with Go Daddy sometime this week. I just can't decide whether I want a .info or .net. You guys should really check this place out. Having your own domain for $1.99 is just too good of a deal to turn down.
Go Daddy is probably the easiest place to register you domain and set up you website, and Danica Patrick makes it so much better. At Go Daddy, you can register a domain for up to 70% less than other registrars AND get hosting, an easy-to-use site-builder, personalized email account, blog/podcast tool, photo album and more - all absolutely FREE. They get you up and running on the Web for just the cost of your domain registration.
I will likely register a domain with Go Daddy sometime this week. I just can't decide whether I want a .info or .net. You guys should really check this place out. Having your own domain for $1.99 is just too good of a deal to turn down.
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.
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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