Tag Archives: Reseller Hosting

Web Hosting Strategy for Managing Multiple Websites

If you are making a comfortable living from the Internet and the Web or have a plan to achieve that goal, it’s likely that you are running more than ten websites. The websites are your virtual offices. You want to your sites to be up and running 365 days, 7 days a week and 24 hours a day. Managing multiple websites is a daunting task if running one website is a hobby.


Proposed Hosting Strategy for Managing Multiple Websites

The hosting strategy we propose is to host your multiple major websites with 3-4 different hosting companies, and open a reseller account with another hosting company for 1) small and new websites, 2) web development and 3) backup. Hosting with too many hosting companies will significantly increase the time and the difficulty of managing sites, and using a single hosting company isn’t a smart choice either.

Justification of the Hosting Strategy

Cost – Cost of the Web hosting isn’t an issue for running a single web site whether it costs $5 or $25 a month. The difference is only a few hundred dollars or less a year. It’s always nice and smart to get the most out of every single dollar in doing business. At least, a few hundred dollars difference wouldn’t make or break a business. If you run 10 or even 50 websites, the cost of Web hosting alone will define the success or failure of your online adventure. To cut the hosting cost, the option is to use a reseller hosting account to host as many small or new sites as you want for about $15 a month. You host one or 2 major websites with one hosting company. Shared hosting account costs under $10 a month, and dedicated server will cost $50 or more a month.

Uptime – If your bread-and-butter maker website is down for a few hours, you’ll lose hundreds of dollars and more. Even though most hosting companies promise 99.9% uptime, it’s not common to see a website down for a few hours. A site could be down for a half day or even more if a hosting company is doing a major update. The hosting company may do the update in a weekend or a major holiday, but that’s when many family-oriented and travel sites generate their revenues. If you could afford the loss of revenues, many websites owners can’t bear the psychological loss and pressure. Hosting your sites with a few hosting companies will reduce the risk of downtime.

Application Development – For simple web application, webmasters will do development on the same production hosting site. If your ecommerce applications are complex, doing development on the production site may bring down the live site especially if you’re in the process of changing configuration files or install customized applications. The option is setup a website on your reseller account for development and testing, and move the applications to production account on another server after the completion.

Backup – If you’re not happy with a hosting company, a hosting company is out of business, or the servers will be down for a day or two, you can easily temporarily or permanently switch from one hosting company to other since you’re familiar with the site managing tools already. If you have a backup or secondary copy running on another server, all you need for the switch is the transfer of the domain, which will take no more than a minute.


Shop Before You Buy

There’re too many hosting plans to choose from a large number of hosting companies – ASP Web Hosting, Budget Hosting, Dedicated Servers, eCommerce Hosting, FrontPage Web Hosting, Hosting With Templates ( http://www.theserving.com ) , Managed Web Hosting, PHP Web Hosting, Reseller Hosting, Shared Hosting, Unix / Linux Hosting, Virtual Private Servers, Windows Hosting or Co-location Hosting. Compare the cost, hosting features, tracking records of hosting companies before making your commitment. Good luck with your online adventures.

Reseller Hosting Defined

The term Reseller according to the dictionary means to sell again i.e. to sell a product or service to the public or to an end user, especially as an authorized dealer, while making sure that you make a profit on the sale.

Reseller Hosting

Reseller hosting is no different either, a reseller buys a Web hosting package from a hosting company and tries to sell it independently. The profit for the reseller lies in either the discount or in the commission s/he gets from selling an account.

For example: The reseller might purchase a package whose features are valued at $100 for $90. So, the reseller stands to make a $10 profit on selling the package to customers. Normally as the customers increase, so does the profit margin for the reseller.

Or, you can get some money by earning commissions from a hosting company. This happens when you refer potential customers to the hosting company. If the customer signs up with the company then you earn a small recurring commission until the customer uses the services.

Most web hosting companies try to outsource their services to resellers as it helps them to extend their business reach without the cost of marketing and sales and also helps them to concentrate on the business side of things.

What can be resold

As a reseller you can decide what kinds of services you can sell.
You can provide shared, dedicated or co-location web hosting or merchant accounts, store fronts etc.

If you go with hosting then it might be useful to offer some other hosting related services like domain names, search engines etc.

Of course, if you have problems selling these value added services in the beginning then you can sell them later.

The cost and resources involved

The cost of becoming a reseller and the equipment and people required in order to be successful depends on many factors.

If you just plan to earn commission by referring people to the hosting company by using the Internet, then you do not have to put up a lot of money, all you need is an Internet ready PC and an Internet connection.

For a small start-up not a lot of money and resources are required. You can purchase a good reseller package from a hosting company by paying them some money upfront. All that is needed is a decent computer that can manage the accounts of customers and a good Internet connection.

It is advisable to start small if you are very new to the concept of web hosting and reselling. Then you can expand as you go on and start getting more and more customers in which case offering domain registration is also a very good way to make profits.

If you have the money and the experience then you can go as far as buying all the server equipment required, in which case you will also be responsible for all the server maintenance costs.

The other option could be leasing a server as this will be cheaper than buying the server, but here as well you are responsible for all the maintenance and running costs of the server.

In the above two cases you also need to make sure that you have multiple connections with the hosting company so there are no complications in case a connection goes down.

Upside

The best thing about being a reseller is that you do not require a lot of upfront investment.

There is no need to have a lot of technical knowledge. Account management and Internet skills are all that is required. However, it would be really handy if you have some sales and marketing experience so you can interact with your customers better.

The hosting company generally provides and maintains all the hardware and software.

You do not need to hire a lot of IT staff to provide support. Providing basic support and leaving the more technical issues to the parent company support staff can be easily achieved.

Downside

Support can sometimes be delayed, as you are dependent on the parent company to handle the technical aspects. If there is a delay from their side then you along with your customer are affected.

Sometimes customers leave you if they find out that you are a reseller and not a real hosting company.

Tips for marketing yourself

If you are starting out on a small scale then visiting message boards and posting your services there is a good idea. A lot of potential clientele with relatively small hosting needs also frequent message boards and outline their desired services.

Having contests is a great idea for bringing awareness and interest about your services.

Online ad campaigns, signatures, and text links are very helpful techniques.

Once you have gotten a bigger budget then you can go for Google ad words or PPC search engines.

The best strategy is to try out various combination of these approaches and work out the best one for your needs.