Guest Post – How to Start your Reseller Web Hosting Business

Software

Reseller hosting provides an excellent income stream that grants you the ability to sublease bandwidth and disk space to others. In the process, you charge the people using your bandwidth and disk space by the month, as long as they wish to use it. According to the Vodahost website, you stay in complete control of how much disk space and bandwidth your subaccount holders get to use. Because this is one of a number of ways you can generate extra income for yourself in the Internet age, this post will provide tips on how to start such a business and be successful at it.

Create a Business Plan

If this business plan is to be the road map to a successful business, it must be detailed. It must indicate such things as how much money — or capital — you need to run the business. Also write into your plan what audience you wish to reach. Take this opportunity to figure out how you intend to market your service, and how to make it unique. The business plan is your chance. According to the Crucial Paradigm website, the best resource you can use to help you assemble the plan is the US Small Business Administration booklet.

create a business plan

Consider Your Potential Customers

Identify people who would be interested in your service. Make a list of these individuals, categorizing them by what kind of website hosting they want to buy. You may ask them questions such as, “How much money are you willing to pay for web hosting?” This is a possible indicator of what you should charge a month. Research your competition to see if you can offer the same service at a different price.

consider your potential customers

Think Seriously About Tech Support

If you’re planning to enter the reseller hosting business, consider the web hosting company with whom you’ll be working, plus your own technical computer savvy. It won’t help your reselling business if your clients’ websites are faced with constant glitches or down time. If you are not knowledgeable about technical matters, seek a web hosting service company who would help you with technical support at a low cost.

Tech Support

Consider the Costs of Your Business Venture

Like any other business venture, a reseller web hosting business has overhead expenses. Be ready to pay for them — whether they are one-time expenses or monthly costs. A working computer is a necessity. Make sure it’s Internet compatible, and a modern one. Otherwise, you may be stuck with an older model with its own set of issues — such as viruses, as well as software — such as parental controls — that may prevent you from placing the Internet on it. And one note about your Internet provider: Be sure to ask if it has the capability to hold multiple connections, since your ability to conduct business requires the capability of your provider to do so.

Figure the cost of financial software into your budget. As Crucial Paradigm points out, you should have E-commerce, control and billing software as part of your package. These items are not free, and not inexpensive either.

In addition, consider the price associated with promoting your website and advertising it. If you don’t know anything about website design or SEO, then you will have to hire someone who is skilled in making sure your website is not only professional, but also will rank highly in Internet searches.

cost of business venture

Legal Issues

Become familiar with the legal issues concerning your business. Make sure you know how much tax you are likely to owe, depending on how much money you make that year. Also decide if you want to operate as a sole proprietor, a limited liability company, or a full-fledged business with employers. Know your responsibilities to the IRS for each categorization.

legal issues for business

Conclusion

You can make lots of money as a web reseller. However, you must do your research and be willing to put in the work to make it successful, even if it means taking advanced courses on how to do technical support, so that customers want to continue to take advantage of your services, and refer others to your business as well.

Sources

http://www.crucialp.com/resources/tutorials/web-hosting/how-to-start-your-own-reseller-hostingi-business.php

http://www.vodahost.com/web-hosting-best-cheap-reseller-hosting.html/

Hugh Yearsley contributed this guest post on behalf of WhoIsHostingThis – find out more information on their webhosting reviews. Hugh is a freelance writer with extensive experience in the web hosting industry.

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