It's been touted as one of the easiest ways for the relatively-web-savvy individual to make money on the web - reseller web hosting. Presumably, all you have to do is get a reseller hosting account, look for clients, and watch the dollars roll in, month after month after month. We all know what the hype says in this situation - reselling web hosting accounts is a no-brainer business. However, can the reality of the project live up to the potential that the hype creates?
Before you dive into the amazing money-maker of reseller web hosting, there are a number of things that you need to know. First off - it isn't quite as hassle-free as it's hyped up to be. See, even if you do manage to have hundreds of paying clients for your branded web hosting services, you nonetheless need to support your clients. At the very least, what this means is that you either have to employ the service of people to deal with your support requests, or you must dedicate your own time to the cause. Now, as a reseller, you will not likely have root access to the server, so in most cases, you have to be the middleman between your buyers and your web hosting service provider when support requests surface.
The 2nd area is probably where you're going to walk into the biggest difficulties -- getting clients. See, when bandwidth and disk space was just starting to come down in price many years back, that may have been a really good time to jump on the reseller web hosting bandwagon. However, over the years, literally hundreds of people, who have the same ideas that you do, jumped on that wagon, and sad to say, the wheels fell off from it.
Now, this isn't intended to completely stop you from pursuing the 'make money via reseller web hosting' opportunity, but if you hope to make it work for you - you have to do something that other typical business owner hopefuls haven't already tried. You have to change your offers!
You will discover ways to generate an income with a reseller web hosting account, but the beginners who are successful in this market are not relying on reselling web hosting services alone - they are taking on supplemental services. For instance, some are promoting website design services, and then subsequently offering website hosting packages to their potential customers. Or they cater to a particular segment or niche market. Others are taking essential services, such as shopping cart tools, affiliate management systems, as well as credit card processing and combining them with website hosting services to offer to the public. Unfortunately, the viability of running a profitable, no-effort reseller hosting business out of your bedroom or extra room just isn't likely anymore.
So, while there are ways, even now, that you can earn reselling web hosting, you're going to be hard-pressed to make money through promoting hosting services as a stand-alone service.
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