Web hosting can be an exciting business start up for aspiring entrepreneurs. All you have to do to set up your business is become a hosting reseller, i.e., provide hosting facilities to website owners. Here as a business owner, you are buying space from a big hosting company, and redistributing the hosting space to other website owners.
Resellers are nothing but entrepreneurs acting as middlemen, offering you hosting services by leasing time and space from another Web host’s server rather than owning their own. Most of the times, the quality of services offered by resellers are so good that consumers do not even have the idea that they are dealing with resellers who do not have servers of their own. Resellers, since they can pick and choose their servers, are basically in a position to provide the customers with the best of services.
Reseller hosting business can be quite a profit making venture once you understand the figures and profit margins involved. Let us go through them. One can buy around 1000 MB space from a major web host at a cost of $25 per month. This 1000 MB space that you now own can in turn be redistributed to site owners who need space for uploading their site. Here you can give about 25 MB space for around $5 per month. Which means your monthly income comes to around $200 when you sell 40 hosting packages. Want more. some hosts allow you to oversell the space and do not charge you extra unless the actual usage of your account exceeds 1000MB. It is seen that a typical user uses less than half of the allotted web space. which means you can double or even triple sell your quota and make unlimited wealth.
And mind well, this income is residual income. It will keep coming to you month after month, year after year. You do the work once. and get paid for it over and over. All you are doing is buying space from a major web hosting company and becoming a reseller host. Your efforts are focused towards selling hosting space and the rest is handled by your web host. Some of them even handle customer service to your customers for a nominal fee. which makes it even easier for you.
If this is not enough. you can earn additional residual incomes by adding recruiting more resellers through you. By doing this you will earn regular commissions on their monthly sales. isn’t this smart business. The profit margins in the business of reseller hosting is quite good and you can start on this exciting business venture even if you do not have the required expertise and access to funds for setting up the required infrastructure. Strange as it might sound, there are also times where a reseller can also be more scalable than a typical hosting firm. A true Web host is limited by its hardware; if a client suddenly requires an upgrade the host is not prepared for, the only way the host will be able to satisfy the customer is by upgrading its hardware – expensive and time consuming for both sides. The reseller host, however, can simply choose to locate with a different Web host that will better suit the customer’s needs.