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How to Start a Reseller Hosting Business in 2021

start a reseller hosting business

If you want to start a reseller hosting business, one of the first and most important steps you can take is finding a reliable and reputable hosting service. One of the many perks of starting a reseller hosting business is that it requires little capital to start up; however, your success hinges largely on the provider you choose. It is somewhat counterintuitive for an entrepreneur to place a portion of their likelihood of success in someone else’s hands; regardless, starting a reseller hosting business is certainly an exciting step for anyone who wants to enter the online hosting world.

In order to successfully start a reseller hosting business, the entrepreneur will have to take other steps to ensure their success beyond just selecting a good hosting service. They will also have to identify and choose their target audience, set an appropriate budget and pricing, prepare to scale for the future, and market their business.

While it may seem like there are a lot of steps to take, it is certainly not an impossible task. Here’s a closer look at some of the steps an entrepreneur should take to set their new reseller hosting business up for success.

Selecting a Good Hosting Service

As previously mentioned, the most critical part of starting a reseller hosting business is finding a good provider. There are benefits and challenges to running a reseller hosting business. One of those challenges is that the reseller is largely dependent on the abilities and efficacy of the parent hosting company. 

For example, the reseller will not have control if the servers hosting their websites unexpectedly go down. Instead, they will have to wait for the provider to get the systems back up and running. This can be frustrating for several reasons. If the hosting company is unreliable or not communicative, the reseller may be left in the dark and unable to provide answers to their clients. On the other hand, if the provider is reliable, they may provide concise updates to the reseller and work quickly on getting the server back online. 

Selecting a good reseller hosting provider is the most crucial step in this process. The entrepreneur must be sure to identify reliability, credibility, and connectivity of the parent host company.

Choosing a Target Audience

The entrepreneur should consider targeting a specific demographic or audience with their reseller products. Focusing on a niche allows the entrepreneur to fill a void where there were no previous providers. They can also focus on connecting with their clients, understanding their unique needs, and providing web hosting solutions that meet those needs. 

Choosing an appropriate target audience will allow the entrepreneur to attract and retain customers. It is important that this niche be an area of expertise so that clients are not put off by a lack of knowledge surrounding their issues. 

Marketing

The online hosting world is a competitive marketplace. As a result, thoughtful and eye-grabbing marketing is an important step in attracting new customers. Once a commerce website is established for customers to browse, additional steps can be taken to ensure it ranks high on search engines for relevance.

Anyone entering the reseller hosting business world likely knows of, or has at least heard of, search engine optimization (SEO). Both the entrepreneur and their clients will need to utilize SEO to ensure their websites catch peoples’ attention. 

In order to boost SEO, the reseller website should have relevant keywords, regularly updated information (such as a blog), and a social media presence. Additionally, the entrepreneur can invest in advertising platforms such as GoogleAds in order to promote their products. 

Budgeting and Pricing

Starting up any new business requires meticulous budgeting and pricing. Although starting a reseller hosting business has a low cost barrier, there will still be an initial investment required. An entrepreneur should also plan for unforeseen financial requirements.

While choosing a reseller provider, the entrepreneur should closely analyze their pricing options. A diversified reseller provider should have a variety of options available for different budget sizes. A large investment is not necessary because a reseller hosting business has potential to grow. As a result, the entrepreneur can reevaluate which pricing program they choose from their provider. 

When choosing their initial budgeting plan, they should also consider future plans they may need to utilize. While initial low-budget plans may be very affordable, it is possible that the upgraded plans are too expensive. As the reseller hosting business grows, they do not want to be hindered by the sudden costs they did not consider if they discover they need to upgrade their plans. 

After establishing their own budget, the reseller business should then develop their own pricing plans for their customers. The reseller will be offering a variety of services in different price ranges, and should ensure their customers are well-informed. Similar to how the reseller searches for a reliable and communicative provider, so too will the customer search for an equally worthwhile reseller hosting service. 

In order to build trust with a new client base, the reseller business should make their pricing plans clear and concise. Each plan should include a comprehensive list of which services the customer will receive. Including hidden fees or deceptive advertising is a surefire way to lose customers and receive poor reviews. Setting a good price range depends on competition research as well. The prices should not be prohibitively high, nor should they be so low that the business loses money with each sale. 

Ultimately, choosing the pricing options depends on your competition and the buying power of your audience.

start a reseller hosting business
Photo by NASA

Contact InnoHosting

At InnoHosting, we believe in providing a range of reseller hosting options to suit your needs. Whether you are starting off in the reseller hosting world, or are established and want to upgrade your system, InnoHosting provides an array of options for any budget. Contact us today at InnoHosting to discuss your options, or view our reseller packages here. 

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