For small businesses, the ability to diversify and add new income streams is essential to cope with the peaks and troughs of user demand. For the slightly more tech-savvy organisation, reseller hosting could be a viable option.
What is reseller hosting?
At the most basic level, reseller hosting is the process of selling re-branded web services to your clients. In the same way that you need to purchase a web hosting service for your company’s website, so too must your clients. Reseller hosting allows you to earn a fee by providing them with this service.
In this way, the earnings from reseller hosting are like a finder’s fee but with one significant difference.
How does it work?
A finder’s fee tends to be a one-off payment, either as a flat fee, or a percentage of the total sale value. Reseller hosting is slightly different. Because you are selling an ongoing service, you get to keep the difference between the fee charged by your service provider and the amount you charge your client.
Reseller hosting services typically offer preferential rates, so hosting and domain purchases prices are cheaper than when bought direct, making it easy for you to apply a mark-up. You may also be entitled to various benefits yourself, such as free add-ons to improve the performance of your site.
But the true value in reselling hosting packages comes from the ongoing nature of the service. Reseller hosting can be billed monthly or annually, creating a regular stream of income and helping to improve your cashflow. A regular monthly income will help to better balance your books and aid with financial planning.
Don’t panic – reselling hosting services need not be technical
Reseller hosting can be as simple or as complex as you need depending on your own level of technical knowledge. At the basic end of the spectrum you simply provide clients with access to a rebadged version of the control panel that you use for managing your own website – they are then free to configure the provided webspace and services in any way they choose.
If you do decide to offer web services, always ensure you choose a reseller package that provides technical support as standard. Without this provision your business will have to answer and resolve technical problems in-house – not ideal if you are not technical experts! Instead you want your customers to be able to contact the provider direct with any queries or problems – some services will even answer calls and emails as if they are from your company to maintain customer trust.
Ultimately you are looking to partner with a provider who does all the hard work in the background, leaving you free to enjoy the revenue earned from selling the services.
If your business is looking to create a new revenue stream with minimal overheads and repeat income, reseller hosting could be a very good option.
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