There are many reasons people begin to consider web hosting reselling, and with today's advances in web accessibility, reselling has become a viable option for even those of us who are technologically challenged. As a reseller, knowing the technical aspects of the server and it's inner workings is not as important as good management skills are to having a successful resale business.
So what is hosting reselling, really? The easy answer to that is that the reseller is a 'storefront' for an actual web hosting company. The hosting company owns the actual servers - the boxes that you can see and touch, that host websites and make them available to internet users. Web hosting companies provide the physical machinery, as well as the technical know-how to update and repair these machines. The hosting company will be the one who ultimately fixes any issues with the hardware or the software that runs the server.
Web Hosting
The reseller purchases hosting services from the hosting company, and resells those services to their own clients. Depending on the hosting company partner you choose, you may be alloted your own section of the server to resell, as in the case of a Virtual Private Server, or you may simply be purchasing small accounts from the host to resell. As a reseller your clients will contact you with any technical issues they have, and you in turn will contact your provider for the solutions. Some guides to choosing a hosting partner and reseller package are covered later, but for now, where should you start?
Step One: Determine who you will sell to.
Knowing who you want to sell to will guide you through every other step of starting your business. The biggest factor to keep in mind is whether you want to sell hosting only to clients who have a previous relationship with you, such as someone you design and maintain a website for, or if you will host anyone that asks. The reason this is important is because hosting providers offer many different types of reseller packages, some that allow the reseller's clients to have access to many of their own server functions, and some that do not. Chances are if you choose to take on hosting clients besides your normal web design clients, you will want to give them some degree of independence. You will choose a reseller account that allows clients to have their own access to set up email and change their own passwords, so you do not have to do this for them every time. Decide on your market before shopping for reseller packages, and keep your ideas in mind as you begin to look over the plans.
Step Two: Choose your partner.
Research your choice of hosting partner carefully, and not based solely on price. Good support goes almost without saying - make sure that you can reach your host at least by email 24/7, in case of emergencies. Look over the interfaces the hosts offer, based on who you are selling to. Most hosts offer a choice in control panels, such as Plesk and C-Panel, to help your clients to be able to easily and effectively learn how to create their own email accounts and accomplish other common tasks. Find out how many different domains you are allowed to host in one package, and if that is upgradeable or if you'd need an additional package to host more. Does the host also offer shell (root) access to your server? This may be important to you if you have some programming skills, if you do not you'll be more concerned with the interfaces. What features do their hosting products offer? Nearly everyone these days know what a Blog is, or a Forum - and nearly everyone will want one at one point or another. Does your hosting partner offer you a package that allows for easy installation of the applications, or are you going to have to learn some programming to get them installed if your clients ask for them? What payment terms do they offer? Often paying for a block of time up front can lead to better values for you. Does your host allow you to brand your server interfaces? You may want to be able to add your company logo to each of the products you resell, so that your clients only see you as their provider, not your host company.
Step Three: Set rules for yourself.
Decide how you are going to market your hosting services. Do you want to offer packages with different amounts of space and different prices, or one package? How will you allow you clients to pay, and at what intervals? A common practice these days in hosting reselling is 'overselling'. Overselling means that you offer your clients a specific amount of space per account, but you sell more accounts than you actually have space for. Not everyone is going to use the full amount of web space you offer, and in fact most clients use only a fraction. So overselling is not in itself bad - you get more clients onto your server that way. But keep in mind that this will require you to monitor your clients carefully, because if you pack too many onto one account and they do start using up all their space, performance will deteriorate for all your clients. Decide now how much time you want to spend on monitoring, and how hands-on you want to be in managing your hosting clients. If you'd prefer not to have to buy another hosting package in a hurry and physically move your clients to the new machine when your current one is over-full, you will want to stick closer to the recommended limits and not oversell.
Step Four: Set rules for your clients
Every web hosting company has a TOS, or Terms of Service agreement. You need one too - even if you are just a small business with only a few clients you know well, always have a TOS in writing that you have each client agree to. This protects both you and the client in the event of a dispute. There are many factors that go into a TOS, everything from refund periods to what sort of content is legally allowed. If YOUR hosting provider does not allow porn sites, for example, you cannot allow your clients to operate them either. Your best bet is to make a copy of your host partner's TOS, then adapt it to your own needs. That way you cover all the needs of your partner, and add in anything else you think you may need personally.
Step Five: Market your product.
Now that you have decided what type of hosting packages to offer your clients and have set your pricing and Terms of Service, you can begin to market yourself as a Hosting Provider. Contact your current web design clients and offer them your new hosting services (if you haven't already). Offering to move their websites onto your server at no charge can be a big incentive to get them to change. New hosting clients will move their own sites, but existing ones will appreciate the extra effort you make to change them over. Add your hosting products to your own website, including a copy of your new hosting TOS. Use any of the other advertising venues you normally use to promote your current services, and update them with your new offerings.
As you move forward with your reselling company, keep your eyes open for other products you may want to add. Domain registration is another popular option, and many hosting providers also offer domain reseller options. Following good management principles in terms of providing service, keeping track of billing, and finding creative ways to package your services to suit the needs of your clients will help make your reselling business a real asset to your company.
Web Hosting: How to Become a Reseller
