The most popular type of reseller hosting is an arrangement wherein the client purchases the host’s services at a wholesale price then resells the bandwidth and server space to customers. There are two methods to this type of hosting. First, the reseller rents a dedicated server from the host and sells the space and bandwidth or they may resell the shared server space.
This is a very lucrative market as it does not require the reseller to have extensive technical knowledge of web hosting, simply smart business sense. Another benefit for the reseller is they do not have to maintain the servers. All downtime issues, upgrades, recovery centers, hardware and general infrastructure are preserved by the hosting company.
The downfall of being a reseller is the extensive advertising costs involved. It’s difficult to go head-to-head against large web hosting providers when it’s simply a reseller service. A large budget in advertising is a must for any reseller to be profitable. Also, this is a low margin business so most money is pumped back in to advertising.
The typical web hosting resellers are web developers, system integrators, and web design firms. They tend to offer the hosting services as an add-on to their already established business. Entrepreneurs are also attracted to reseller hosting as it’s an inexpensive way to start a business with little overhead.
Most hosting companies allow reselling to occur. Many actually permit the reseller to customize their hosting plans as well as pricing structure. This allows resellers to create branding of their services based on the unique plans that are established. All actions can be monitored via the web in a control panel.
Affiliate Reseller
Another form of hosting is more on the affiliate level. The reseller acts as an agent for the hosting company by advertising the hosting services. Customers purchase the service directly from the host, but the reseller makes a small commission for their advertising efforts.
Marketing Reseller
An additional form is where the reseller acts as a marketer for the hosting company. Customers purchase the service from the reseller, but only deal with the hosting company thereafter. The reseller acts as a middle man only selling the service, but not dealing with any follow-ups, technical issues or complaints.
Portioning Reseller
The final type occurs when the reseller purchases a large chunk of bandwidth and storage space, then breaks it up into smaller portions and sells it to consumers. Customers contact the reseller for any issues.
There are many different types of resellers within the web hosting industry. Since this industry generates tremendous profits, resellers get a small piece of that without having to invest much upfront capital. This is a great way to start a business and also obtain inexpensive web hosting.
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This is a very lucrative market as it does not require the reseller to have extensive technical knowledge of web hosting, simply smart business sense. Another benefit for the reseller is they do not have to maintain the servers. All downtime issues, upgrades, recovery centers, hardware and general infrastructure are preserved by the hosting company.
The downfall of being a reseller is the extensive advertising costs involved. It’s difficult to go head-to-head against large web hosting providers when it’s simply a reseller service. A large budget in advertising is a must for any reseller to be profitable. Also, this is a low margin business so most money is pumped back in to advertising.
The typical web hosting resellers are web developers, system integrators, and web design firms. They tend to offer the hosting services as an add-on to their already established business. Entrepreneurs are also attracted to reseller hosting as it’s an inexpensive way to start a business with little overhead.
Most hosting companies allow reselling to occur. Many actually permit the reseller to customize their hosting plans as well as pricing structure. This allows resellers to create branding of their services based on the unique plans that are established. All actions can be monitored via the web in a control panel.
Affiliate Reseller
Another form of hosting is more on the affiliate level. The reseller acts as an agent for the hosting company by advertising the hosting services. Customers purchase the service directly from the host, but the reseller makes a small commission for their advertising efforts.
Marketing Reseller
An additional form is where the reseller acts as a marketer for the hosting company. Customers purchase the service from the reseller, but only deal with the hosting company thereafter. The reseller acts as a middle man only selling the service, but not dealing with any follow-ups, technical issues or complaints.
Portioning Reseller
The final type occurs when the reseller purchases a large chunk of bandwidth and storage space, then breaks it up into smaller portions and sells it to consumers. Customers contact the reseller for any issues.
There are many different types of resellers within the web hosting industry. Since this industry generates tremendous profits, resellers get a small piece of that without having to invest much upfront capital. This is a great way to start a business and also obtain inexpensive web hosting.
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2 comments:
It's really nice explanation about reseller hosting.I found the site http://www.goresellers.com/ .This site provides the two reseller packages such as basic and pro.Each package provides more features.I am planning to buy a basic reseller package.
good info
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