It's been marketed as one of the most effective methods for the somewhat-web-savvy individual to make money on the Internet - reseller web hosting. Presumably, all you have to do is get a reseller hosting account, get clients, and watch the dollars roll in, month after month after month. We all understand what the publicity says in this issue - reselling web hosting accounts is a no-brainer business opportunity. However, can the reality of the opportunity live up to the potential that the hype creates?
Before you dive into the fantastic money-maker of reseller web hosting, there are a number of things that you have to know. First off - it isn't quite as easy as it's hyped up to be. See, even when you do manage to obtain hundreds of paying clients for your branded web hosting services, you still need to support your clients. At the very least, what this means is that you either have to employ the service of people to manage your support requests, or you must dedicate your own precious time to the cause. Now, as a reseller, you would not likely have root access to the server, therefore in a lot of cases, you have to be the middleman between your clients and your web hosting service provider when support requests surface.
Another area is probably where you're going to have the biggest difficulties -- getting clients. See, when bandwidth and disk space was just beginning to come down in price a few years back, that could have been a good time to jump on the reseller web hosting bandwagon. However, over the years, literally tens of thousands 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' business, but if you wish to make it work for you - you must do something that other mainstream business owner hopefuls haven't already tried. You have to differentiate 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 depending on reselling web hosting services only - they are taking on extra services. For instance, some are offering website design services, and then subsequently offering website hosting packages to their clients. Or they cater to a particular segment or niche market. Others are taking essential services, such as shopping cart solutions, affiliate management systems, as well as credit card processing and incorporating them with website hosting services to offer to the general public. Unfortunately, the viability of running a successful, no-effort reseller hosting business out of your bedroom or spare room just isn't likely anymore.
So, while there are ways, even today, that you can earn reselling web hosting, you're going to be hard-pressed to make money through providing hosting services as a stand-alone service.
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