Financial independence is the dream of many an online entrepreneur. The ability to work and make money from anywhere in the world is indeed appealing. Just imagine making money from a deluxe suite with a panoramic view of a Hawaiian beach while your average working stiff spends most of their waking hours cooped up in a cubicle.
The Internet offers a plethora of ways to make money. Affiliate marketing, copywriting, and even teaching online are ways that people are making their livings in the digital age. In order to make a secure living, entrepreneurs should put their eggs into multiple baskets. Numerous small streams of income offer greater security than one stream that can be cut off, especially in the world of online business. One often overlooked stream is reselling web hosting plans.
Webhost reselling comes in two flavors. The first option that resellers have is to buy large quantities of shared hosting accounts from web hosts such as Hostgator . These accounts are then resold, potentially at profit, to customers. This option can be likened to a retailer selling goods bought from a wholesale market.
Given that shared hosting can be bought from better-known web hosts, this option might not appeal to customers on its own. When paired with other perks, such as SEO services, web design services, or marketing plans, it can be a method of making additional income from an online business.
Many parent web hosts do not offer shared hosting reselling, so make sure that you do your research if this options appeals to you.
Reselling Hosting on a Rented Server
Reselling hosting from a rented dedicated (or VPS) server is where the real fun begins. This model of hosting reselling is similar to renting an apartment, then renting the rooms to other tenants. Under this mode, resellers can set the amount of disk space and bandwidth that each client is allocated. This essentially makes a reseller a small, independent web host of their own, capable of appealing to niche markets with shared hosting plans using their own rented server.
The resller devises their own hosting plans, similar to how a big web host would. After overheads are paid for, they would also keep the profits. Renting a dedicated server or VPS is the best option for entrepreneurs that want to profit primarily from their hosting business. It might still be difficult to compete with the big names in the business, but it is the better options compared to shared hosting reselling.
Reselling as a Business
Hosting reselling is a great way for entrepreneurs to quickly get a business off of the ground and on the Web. Although it might seem daunting due to technical issues, most resellers will not have to have too much IT knowledge to get things up and running. Some technical know-how is beneficial, of course, but parent hosting companies provide much of the tech support. The only support that would be necessary is taking complaints and feedback from customers, and sending the information on to the parent company to resolve any issues that might come up. This varies from company to company, however, so look into this before taking our word for it.
Most parent hosting companies allow hosting resellers to add their own personal branding, such as customized control panels. Branding is vital in this business, as is marketing, since there is a ton of competition in the market. In fact, while the price of entry is low, advertising costs can make hosting reselling an expensive field to get into. The upside to this is that new websites come online every day, and all websites need hosting. In other words, there is a virtually infinite number of clients out there.
Reselling hosting is an entrepreneurial option that people that wish to make money online should not overlook. Like many online business options, the overhead does not have to be large, and with the right marketing scheme, growth can be exponential. The only major downside is the harsh competition, which requires good marketing and SEO to overcome.
Even if reselling is not used as a primary method of garnering online income, it can help to bring in additional revenue when offered as an additional service to an already existent business, or when offered with other deals as part of a package. Remember that financial freedom by way of online endeavors often comes from multiple streams on income, not just one method.
As always, do your research before investing your hard-earned money in starting up a business. Some parent hosts offer services that others do not, and some are more reputable than others. Make sure that you are getting exactly what you want, and more importantly, that you can offer your customers the hosting and services that they need!