It's been marketed as one of the fastest methods for the somewhat-web-savvy individual to make money online - reseller web hosting. Apparently, 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 understand what the advertising says in this issue - reselling web hosting accounts is a no-brainer opportunity. However, can the reality of the opportunity live up to the conditions that the hype produces?
Before you dive into the great money-maker of reseller web hosting, there are some things that you have to know. First off - it isn't quite as simple as it's hyped up to be. See, even when you do manage to obtain hundreds of paying clients for your branded web hosting services, you still need to support your clients. At the very least, this implies that you either have to hire people to handle your support requests, or you have to dedicate your own precious time to the cause. Now, as a reseller, you may not likely have root access to the server, therefore in a lot of cases, you have to be the middleman between your clients and your web hosting provider 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 could have been a good time to jump on the reseller web hosting bandwagon. However, over the years, literally tens of thousands of people, who have the very 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' business, but if you expect to make it work for you - you must do something that other conventional business owner hopefuls haven't already tried. You have to differentiate your offers!
You will find ways to make money with a reseller web hosting account, but the first timers who are finding success in this market are not depending on reselling web hosting services exclusively - they are taking on extra services. For instance, some are offering website design services, and then subsequently offering website hosting packages to their clients. Or they cater to a targeted segment or niche market. Others are taking needed services, such as shopping cart systems, affiliate management systems, along with credit card processing and incorporating them with website hosting services to offer to everybody. Unfortunately, the viability of running a successful, no-effort reseller hosting business out of your bedroom or spare room just isn't likely anymore.
So, while there are ways, even today, that you can generate an income 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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