Since the economic recession, most companies have looked to create new revenue streams. This is something that they should have been doing beforehand, as there are so many opportunities there. One of the best opportunities for those that work online, or run an online business serving other business, is reseller web hosting.

Essentially, reseller web hosting is basically buying a space on a web server. Instead of purchasing a small package at a high monthly fee, you buy in bulk. You get maybe 50-100 times the amount of space, but only pay around 5-10 the price. This means that profit margins for reselling this service space are going to be huge.

How do you get involved with reseller hosting?

First of all, you will need to get a reseller account. All of the large companies offer reseller hosting packages. Then, you need to build a purpose made website to sell these services, or you need to make it an add-on to your existing business. Software providers, online service providers and even freelancers can benefit from getting involved with reseller hosting packages. It helps them to increase profits.

There is a basic check list that you need to cover before you actually get started. When choosing the hosting provider, make sure the admin panel is easy to use. You shouldn’t need any technical knowledge in order to be able to use this reseller hosting package. Check out reviews online if necessary. By checking out the reviews you will be able to easily find out which of the web hosting companies are the easiest to deal with and are most reliable in the long term. Alongside this, you will need to choose the right sized plan, an SSL certificate, a billing system and marketing material.

Why do people use reseller hosting?

First of all, it gives you a place to store all of your websites without having to pay huge amounts of cash. The monthly fee is already paid for, so all you need is a handful of customers and your web hosting will be free. This is typically what freelancers do. They might club together and purchase reseller hosting. They all host their websites on one simple package. They can then all offer their clients this reseller hosting. If they manage to sell the hosting, then that is going to be a bonus. If they don’t then this is not going to be a problem, as the package is already built in as an expense, which has been discounted because they are sharing the expense with others.

On the other end of the spectrum, there are those people that are looking to build a business out of web hosting. Instead of having to pay thousands for their own servers, they can pay a small monthly fee. The fees could be as low as $30 per month. Generally, this will give them enough space for 50-100 accounts. They could easily charge $2-5 per account. This could mean that they make a minimum of $70 per month profit and a maximum of $430 per month profit, depending on their pricing structure.

If you are interested in any type of hosting take a look at hostgator.

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