Mon. Apr 6th, 2020

Crimson Blood

General Blog

How to Stay Profitable in the Reseller Business

3 min read

It has become much easier for small businesses to host their sites with reseller hosting. It has also become easier for web host users to make extra money by reselling their plans and hosting capabilities. This is all the more profitable for designers or developers who can create a regular income stream with reselling and also expand their work portfolio.

It requires much lesser investment for you as a reseller, as well as for your clients, who have a limited budget at their disposal. Once you buy the main hosting services from an established hosting provider, you can sell/lease out a part of the same. You can create multiple accounts on your hosting account and allocate storage, bandwidth, hardware, etc. to each of them, which you can then assign to your customers. You act as a liaison between the hosting company and your customers, but your hosting provider remains anonymous to your end-users. The profit you make comes from selling each account. Therefore, the larger the number of customers you acquire, the higher is your earning.

Here are a few simple ways to maintain the profit ratio on your reseller hosting business.

Appropriate business name

Great visibility starts with a great business name. If you already have your design or development business, you can use the same name. But if you are new to this, you can think of a relevant brand name that resonates well with your audience. Next, you need to register your domain name.

Good market research

The market is replete with hosting services and providers thereof. Being one more hosting provider on the block can prove to be challenging if you don’t understand the market well enough. Learn about your competitors, the pricing model that is working for people, what features are in demand, and so on. You don’t need to be a tech expert, but you should learn as much as you can about your business.

Right reseller plans

Depending on who you are targeting and the kind of business you want to serve, you can choose the hosting plans with your hosting provider. Ensure that your selected plans include all features as mentioned and comes for a reasonable cost.

Set a pricing model

After a detailed analysis of your competition, set the pricing for your hosting packages. You want to be competitive to stay in the game, but also not cheap enough to be undermined in quality. If you are a designer or developer, or both, you can create a bundle for your customers, to make it more attractive and economical for your customers. That way, you can become a one-stop-shop for them and increase the chances of revenues.

Set up an accounting system

With the WHMCS, you can manage all your orders, transactions, billing, invoices, and customer requests, all at one place. This automates daily processes, and along with the cPanel, you can easily monitor all purchase activities of your customers. Also, do include a payment gateway for online payments.

Summing up…

The profitability of a reseller business lies in the service quality and customer base. And the better the both these aspects, the higher the chances of increasing your revenues. When your hosting services help your customers’ websites grow and perform well, then automatically, your business will also get a boost.