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How To Resell Web Hosting
Almost everyone with an Internet business needs Web hosting. So, if you're looking for a Web-based business with lots of demand, consider selling Web hosting. Of course, starting your own Web hosting business requires lots of expensive server infrastructure and knowledge. Luckily, re-selling server space doesn't.

How does it Work?
Under a reseller program, you buy bulk server space from a Web host and resell domain hosting from what appear to be your own Web servers. (Don't confuse this with an affiliate program, where you simply send potential customers to the host's Web site and are paid a percentage of any sales that result.) Hosts offer a variety of features that can make business easy for you, including billing software, 24 hour customer support, turnkey Web sites, and sophisticated administrative controls.

How Do I Make Money?
You pay the Web host a monthly fee for bulk server space. Some have size and domain limits - others don't. You then resell that space at a higher price. You are generally free to charge what you want for set-up, monthly fees, and any add-ons you may choose to offer. Although the margins are theoretically unlimited, the market keeps them pretty tight. For example, when a host offers unmetered space for under $5 a month, it needs a lot of accounts to make a decent profit.

How Do I Start?

  1. Identify reseller plans.
  2. Evaluate each offering. You will find that the pricing varies wildly as well as the software and hardware. Some are enterprise-quality hosts; others are meant for smaller sites and limited traffic. Consider at least the following items:
    • server space
    • traffic
    • number of domains allowed
    • available software and scripts
    • support
    • control panel
    • billing software
    • uptime guarantees.
  3. After selecting the best offering, develop a marketing plan. Consider:
    • what market you will target
    • how you will reach your target market
    • how you will price your hosting packages
    • what, if any, incentives you will offer.
  4. Set up a Web site from which to sell your hosting services.
The hardest part about this business is... finding enough business to make up for the small margins.

- Research by: Wale Bello



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