It's been marketed as one of the fastest techniques for the slightly-web-savvy man or woman to make money on the web - reseller web hosting. Supposedly, all you have to do is purchase a reseller hosting account, find clients, and watch the cash roll in, month after month after month. We all have knowledge of what the advertising says in this case - reselling web hosting accounts is a no-brainer opportunity. However, can the actuality of the business live up to the expectations that the hype produces?
Before you dive into the great money-maker of reseller web hosting, there are several things that you have to know. First off - it isn't quite as simple as it's hyped up to be. See, although you do manage to get hundreds of paying buyers for your branded web hosting services, you still have to support your clients. At the very least, this means that you either have to hire people to handle your support requests, or you have to dedicate your own time and effort to the cause. Now, as a reseller, you may not likely have root access to the server, thus in many cases, you have to be the intermediary between your customers and your web hosting company when support requests surface.
The next area is probably where you're going to run into the biggest problems -- getting clients. See, when bandwidth and disk space was just beginning to come down in price a number of years back, that might have been the best time to jump on the reseller web hosting bandwagon. Nonetheless, over the years, literally thousands of people, who have the exact same ideas that you do, jumped on that wagon, and unfortunately, the wheels fell off from it.
Now, this isn't meant to completely hinder you from pursuing the 'make money via reseller web hosting' venture, but if you expect to make it work for you - you need to do something that other conventional business owner hopefuls haven't already done. You have to diversify your offers!
There are ways to make money with a reseller web hosting account, but the newcomers who are finding success in this market are not counting on reselling web hosting services exclusively - they are taking on additional services. For instance, some are providing website design services, and then subsequently promoting website hosting packages to their customers. Or they cater to a specific segment or niche market. Others are taking needed services, such as shopping cart systems, affiliate management systems, along with credit card processing and integrating them with website hosting services to offer to everybody. Unfortunately, the viability of running a lucrative, no-effort reseller hosting business out of your bedroom or spare room just isn't likely anymore.
That being said, while there are ways, even now, that you can make money reselling web hosting, you're going to be hard-pressed to be able to make money through offering hosting services as a stand-alone service.
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