Is This Business a Legitimate Opportunity in This Economy?
Question: “Marc, I know you’ve talked about reselling web hosting services. But is this business a legitimate opportunity in THIS economy?
D.J. Englewood CO
Reselling web-hosting services is still a legitimate business opportunity, and especially in this economy. Granted, entrepreneurs and business owners are not launching websites at the same jaw dropping pace. But the web is still here!
On top of that, reselling hosting services is super easy. It can be hard to start anything when you’re low on cash. But I’ve done it many times and so can you.
Low cash should never stop you from exploring or launching a business, you’d be amazed what you can do without money!
Heck… you can buy real estate with no cash!
Today I’ll show you this business in all its glory.
There are two ways to approach this opportunity:
1) You can purchase everything you need from the ground up, and monitor everything in-house.
2) You can resell web hosting (and associated services). When you resell hosting services your main focus will be on marketing and driving qualified traffic to web-hosting parent companies.
I’ll show you the pros and cons of each approach.
Major hosting players companies like Verio, GoDaddy, Rackspace and iWeb offer world-class reseller programs to entrepreneurs.
The bottom line to making money as a reseller… Price will always be a factor in acquiring new web hosting customers, and especially in this economy.
The major hosting players understand price is an issue and often promote low fee hosting offers in order to persuade people to switch services. But they can’t hold pricing down forever.
The truth about large hosting companies.
The largest web hosting companies have huge overhead, maintenance expenses, payrolls, customer service departments and constant software upgrades.
The largest web hosting companies also have the largest marketing huge budgets. This helps them acquire new customers on a consistent basis and control a lion’s share of the market. Believe me, the hosting industry has changed in a big way the past two years! Hundreds of companies went belly up, or were forced to acquire smaller hosting companies just in order to grow the revenue base. But savvy entrepreneurs can seize niches in the hosting market for themselves.
And if you think that’s great you’ll love this…
Starting a web-hosting business from the ground up can be very expensive. The day-to-day expenses, technical expertise and customer retention can be excruciating (not to mention costly). Therefore, reselling Web-hosting services is a good fit for many entrepreneurs.
When you resell web-hosting services you can partner with legitimate, financially sound web-hosting companies and receive ongoing commission for the business you bring to the table. Granted, you won’t make as much money as you would if you owned web servers outright and started the business yourself. But when you resell web hosting services you won’t have most of the headaches and expenses that go with the investment.
There are literally hundreds of Web-hosting companies to choose from when it comes to selecting a reseller program.
Most web hosts offer reseller programs today.
Voxtreme in New Port Richey, FL is one of the companies which offer a world-class reseller program. Voxtreme currently serves hundreds of web-host resellers worldwide. From what I’ve seen Voxtreme doesn’t try to compete on disk-space or bandwith – but rather on service.
Here is what Voxteme provides to their resellers:
• WebHost Manager reseller control panel
• Personal nameservers (ns1.yourdomain.com & ns2.yourdomain.com)
• Anonymous shared SSL (secure webspace)
• Hosting for multiple domains
• Unlimited e-mail addresses, unlimited ftp accounts, unlimited MySQL databases, unlimited subdomains, unlimited mailing lists, unlimited e-mail forwarders
• POP & SMTP mail servers
• Full IMAP support
• Webmail (Neomail, SquirrelMail, and Horde)
• Full CGI-BIN support
• Full e-commerce support (shopping cart included)
• Multiple cPanel themes
• Fantastico autoinstaller for many popular scripts (such as message board scripts and shopping carts)
• Latest stable versions of many popular development languages, including PHP, Perl, and Python
I know this is a bunch of technical jargon. It puts me to sleep too! But in this business it helps to know some of the techno jargon.
One upside to reselling web-hosting services is, it really doesn’t require any technical expertise! And that’s what makes reselling Web-hosting services so unique. You can let someone else handle all the technical issues (and headaches).
You can focus on marketing, acquiring customers and closing sales (done almost entirely online). Companies like Voxtreme usually handle all of the support, billing, software upgrades and customer service.
Two ways to resell hosting services…
The first way is to rent space on an existing server and resell it. This is called semi-dedicated reselling. The second way is by renting or leasing an entire web-server and reselling the space. This is called dedicated reselling. Each has its own benefits and features. You’ll need to decide which one is best for you.
But I like the idea of reselling hosting services without the hassle of billing, answering questions, technical support, and customer service.
Most Web-hosting reseller programs enable you to sell their services and receive ongoing commissions as long as a client remains with the company. That’s a big deal, because most people stay with their Web host a long time!
Your humble host,
(Ed Note: Marc Charles is referred to as “The King of Business Opportunities” ….and for good reason. He should be known as “The King of Legitimate Business Opportunities”…because he’s launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)
***Action Strategy ***
Determine if you’d like to start a web-hosting service from the ground up (and keep a lion’s share of profits) or resell web hosting services.
If you choose to start this business from the ground up you can buy or rent a dedicated server.
If you rent a server and resell Web-hosting space on it, you won’t need any technical expertise. Large hosting companies typically provide technical expertise for a small fee. This is my favorite option.
The other option is to resell the Web-hosting services.
You won’t make as much money if you resell hosting services. Reseller commission rates vary with each hosting provider but tend to be a percentage of each month’s bill.
When you resell hosting services your focus will be on marketing, acquiring new hosting clients and earning attractive commissions (without the headaches!).
Web-hosting companies with world-class reseller programs:
Targeted Email Newsletters (use these to advertise web hosting services and reach qualified prospects)
Reach Qualified Hosting Prospects with PPC Advertising
Viable PPC / CPC Networks
Yahoo! / Bing (expensive)
Chitika (fair traffic)
Bidvertiser (fair traffic)
Infolinks (weak traffic)
Kontera (weak traffic)
Exit Junction (weak traffic)
ValueClick (weak traffic)
TextLinkAds (weak traffic)
Gmail AdWords (expensive but good)
7Search (inexpensive but super low volume)
***** Action Strategy *****
You can start reselling web hosting services in just a few minutes. Check out the reseller programs with large web hosting companies in this issue. I’m confident you’ll find a good fit.
Reselling web hosting services will free you up to focus on marketing. You can advertise your services and redirect prospects to the large hosting company’s website. You’ll receive a unique ID which identifies you as a reseller, and thus payments will be made to you!
Another way to approach this business is to buy or rent a web server. Again you can do it yourself and store the web server in a secure location. Or you can buy and store a web server with a large web hosting company.
There are variations on these two strategies too, I’m confident your mind will be spinning with ideas!
The best target audiences for Web-hosting services are obvious, any person company or nonprofit agency currently hosting a website.
But more specifically, I recommend focusing on these markets:
Small to medium-sized businesses with active websites
Professional webmasters and developers
Non-profit organizations with active websites
Restaurants, hotels, inns and resorts
Have fun and play nice!
Please keep me posted on your success.
Reseller Panel (excellent resource and reseller program
Web Hosting Talk (news, insight, forum and more)