While browsing through a list of web hosting plans, you have likely come across the term ‘reseller hosting.’ This type of hosting allows individuals to start their own business from home. So, what exactly is reseller hosting, and is it a viable business plan? We will be delving into the answer in the article below.
To become a hosting reseller, you will need to have a plan with a provider. Then, you will divvy up the server space and resources and rent it out to other individuals in the form of hosting packages. Ideally, you will have multiple clients hosting from you at the same time.
Typically, a reseller host would offer clients some sort of deal to entice them. For example, the host might design and create the website for the client in addition to managing it. These types of ‘all-in-one’ deals make reseller hosts more appealing to third parties and are sometimes necessary to compete against big named brands.
Reseller hosting in Canada can be a lucrative business because everyone needs it for their websites to function online. With that being said, it is quite easy to lose your stride and fall behind the competition. There are a few tips that you can utilize to help ensure that your reseller business stays viable.
Choose a Good Hosting Provider
To succeed, the first step is to choose a reliable hosting provider. They will be providing you with the hosting plan that you will base your business on. There are several features that you should look for in a provider. These include, but are not limited to:
- White label hosting – Certain hosting companies will require that you use their name when you resell to clients. Others will allow you to attach your personalized brand name to the service. This will help you stand out in the customers’ eyes, as they will see you as being the provider, not the original hosting company.
- High uptime vs. downtime – Be sure to select a company that is well-known for its exceptional uptime. Your clients will depend on you to keep their websites operational for the highest amount of time possible. Realistically, you should be looking for a provider that offers between 99.90% – 99.99% uptime, with the downtime attributed to regularly scheduled maintenance. Do not sign with a company that guarantees 100% uptime, as this is not possible to achieve.
- Excellent customer service record – When your clients have issues with their websites, they will be coming to you for answers. If you need help, you will then turn to the original host. Make sure that they are well-trained in customer service and have a quick response time. Otherwise, your clients will blame you for their dysfunctional site.
Find Your Niche
Next, you will need to figure out which target audience you will be aiming to market your services to. Instead of directly competing for the general population, narrow down a portion of the market. Try approaching local businesses to inquire if they need any web hosting services. Certain companies may not even be set up with a website yet, and so you can add the importance of that into your business pitch. Do some research and find out who are not having their needs met by large hosting companies. Then, swoop in and save the day by offering your services to them.
Determine Your Breakeven Point
To have a viable business, you will need to sort out your financial plan. Part of this includes determining where your breakeven point is. The main cost that you will need to focus on is the price of your hosting plan. Do not choose the cheapest plan, as that is not likely to have enough resources to divvy out to your clients. Choose a plan that is reasonably priced but still offers sufficient storage space and resources to earn a profit.
At this point, calculate what the cost per day is, and then you will have your breakeven point. If you have a plan that costs $25 per day, you will need to be earning at least $0.83 per day. Anything that you earn over this will be your profit. This may not sound like much, but it can be difficult to achieve in the beginning, especially if you do not sign any clients up right away.