Reseller hosting is a web hosting service provision model. In this, the service provider delivers web hosting solution on third party owned servers. The service provider buys huge chunks of bandwidth and server space from the hosting provider and then breaks these chunks into smaller pieces for retail. Because the reseller host needs to provide competitive prices, the margins are lowered. However, they make up for this by reselling the chunks to many individual users. It is a convenient starting point for those interested in web hosting service provision but lack the capital for the initial investment.
Other benefits of reseller hosting include firstly, economies of scale. The reseller creates an account with the hosting service provider; this then allows them to buy up server space and bandwidth in bulk from the supplier, which lowers the cost. The reseller splits the package bought into smaller retail value for their consumers. Economies of scale apply here because the reseller sources in bulk and so can provide the end user with affordable hosting solutions. Secondly, the reseller need only focus on marketing the service. This is because the administration, maintenance, upgrade, and other related functions are forwarded to the main host. Therefore, the reseller is allowed to focus on the promotion of services to the consumer. The revenue that they save on administration and support personnel can be directed towards online advertising methods. Furthermore, this enables individuals with little technical expertise to engage in the reseller business. You only need to understand marketing fundamentals and do not need any specialized knowledge of the subject matter.
So, how can you undertake reseller hosting? The organized approach includes following steps:
First, create your own website through which advertisements, payments, and service delivery can be channeled. Website should be well laid so that it is easy for your visitors to navigate through and it should have ecommerce facilitation. Ecommerce facilities are secure trading methods and merchants accounts.
Secondly, create an account with the host provider you intend to use. This host must be reliable and should provide affordable options for bulk purchases. Furthermore, ensure that they have a quick response customer service.
Third, ensure that the platform you have selected provides an easy control panel for actual service delivery.
Fourth, determine your pricing and hosting plans. This need to be competitive in order for the uptake levels to be high.
Finally set up the support systems such as the welcome email, the service desk, the billing system and initiate advertising.