Website Hosting Reseller – A Good Business Opportunity?

It is surprisingly easy to set-up in business as a website hosting reseller. The most common model is where you sign up as a reseller with a large hosting company and for a monthly fee (the wholesale price) get a hosting package which you resell to multiple individual users for a fee you determine (the retail price).  You do not have to worry about the technical aspects of providing the service, the areas that require work from you are marketing and sales, customer support and billing (although you may get facilities to help you do this).

Can anyone become a Website Hosting Reseller?
The basic aim of becoming a website hosting reseller is to generate a recurring income for minimal ongoing work.  Assuming that the underlying service is good you should be successful if:
*  It is an obvious add-on to an existing business.
*  You have identified a niche in which you are knowledgeable and/or have contacts.

Can a new small hosting business really compete with the big boys?
This depends on the service being marketed correctly. When asked by individuals I usually advise that they go to one of the major companies as the safe option because good support and continuity are pretty certain.  A small company cannot expect to compete with the major suppliers in the mass market.  It either needs to be fed by an existing business e.g. a web design company or direct its service at a niche in which there are few or no competitors. If you concentrate on people with a particular hobby or engaged in a particular activity you can aim to become a specialist in providing hosting in that niche(s). Your aim should be to position yourself as understanding the specific needs of this niche so that people feel that you will provide a better service than a general hosting company.  

Points to consider when establishing a website hosting reseller business:

Whose Service to Resell – The last thing you want is to have to move your customers between suppliers so it is worth spending time selecting the right supplier at the outset. Clearly the service must be fast and reliable but must also supply exactly what you need to satisfy your market.  Does it support all the features and scripts that your users will need?

Start Small – It will be best to start with the cheapest reseller package you can find from your chosen supplier. You will need to be up and running before you sign your first customers and this might take longer than anticipated.

Your Web Site – You must ensure that your website looks professional and time and effort put into this will be well spent.

Customer Support – Decide on the level of support you can provide, by what means and to what timescale.  Then deliver it – do not promise anything you cannot deliver. Offering telephone support is good as it gives people additional confidence but if you cannot provide this consistently it is better to stick to email.

Research your market – Ensure that you do understand their requirements so that your marketing message (and your website) tells them what they want to hear.