Research Suggests 80% of New Web Hosting Resellers Turn a Profit within a Year

November 12, 2008
November 12, 2008 – (HOSTSEARCH.COM) – Research by Fasthosts Internet (http://www.fasthosts.com) suggests 80% of new web hosting resellers turn a profit within a year. In addition the research, which took in took in 793 resellers, suggested two-thirds of those asked found it “easy to cross-sell web hosting to their existing customer base” and around half “increased average length of service per client as a result of reselling hosting”. The figures underscored a traditional view that reseller web hosting is a “low risk and profitable way to develop an enterprise such as an IT or marketing related business”.

Fasthosts’ further indicated that its resellers would “recommend reselling web hosting to other businesses such as theirs”. In addition, 61% invested less than $1000 setting up their operations, and 84% would “recommend Fasthosts as a reseller partner”.

"In recent months, demand for reseller web hosting has been brisk as more IT related SMBs are seeking to diversify and add strings to their bow,” explained Fasthosts Internet’s CMO, Steve Holford. “By offering web solutions alongside existing services, many businesses find that they can bolster their revenues and protect their client relationships."

According to Fasthosts, one of the key features of web hosting is “excellent scalability, allowing one to model a reseller business flexibly”. Again, according to the company, “all technicalities and back-end processes are handled by the provider but the reseller retains all customer liaison and marketing themselves”. This allows resellers to focus on sales and developing corporate identity.

"With the support of a high-quality provider, creating your own web hosting brand can comprise an efficient way to generate revenue,” added Mr. Holford. “As the web becomes more critical for all sizes and types of business, the web solutions market will enable resellers to capitalize on growth areas such as mobile email, collaboration and ecommerce."

Fasthosts is “the UK's number one web hosting company” and has US operations in Chesterbrook, Pennsylvania. Fasthosts caters for around 1 million domains “ensures over 6 million emails are delivered safely each day” through its own data centers.



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