Reseller Hosting - Why Buy Reseller Packages

What exactly is reseller hosting and who is it for

? Let's take a closer look.

There are many types of hosting packages that one can choose from when purchasing hosting. Those who plan to use the servers for personal or business reasons usually invest in a good shared hosting plan. However, for service providers such as web designers or web developers, reseller hosting may be a better option. Why is that?

If you are a service provider, you will be able to provide your own private label hosting packages to your clients. That means you will be selling the packages under your very own brand name. You design the specifications of each plan, and then offer them to your customers. When they sign up, you bill them a monthly fee. As a reseller, you only pay the monthly fees. You can mark up the prices and charge your clients whatever you like and make a nice profit. Of course, bear in mind that the prices that you offer to your customers should ideally be competitive.

Here is an example.

Let's say you design websites for 100 clients, and you charge $100 for each website that you design. So you earn a total of $10,000 just by designing websites.

But when you take up a reseller plan and start offering your own hosting services, you find that 20 clients that up your offer at the price of $10 per month. That's an additional $200 per month in pure profit that occurs month after month (as long as the customer continues to use your hosting services). You don't really have to do a lot more work to earn that additional income. All you have to do is to offer the plans to your customers when they enquire about your web designing services. Usually, the take up rate is quite high because clients actually find it easier to let the same service provider take care of everything. If there is an issue with their website, they just need to contact the same person.

So how to setup hosting plans with reseller packages?

First, sign up with a reputable hosting provider. Usually, you are allowed to set up private name servers. That means your clients will be able to get their sites to point directly to your domain when they are setting up the hosting for their site.

Next, design at least 3 to 4 hosting plans for your clients to choose from. Ideally, prices should range from $10 a month to $40 a month.

Finally, make sure you setup the billing system. Each reseller plan should come with its own custom billing system and you should be able to use that to collect payments directly from your clients.

Setup your own site and offer the plans you have designed to your own clients and start earning additional income!

by: Gen Wright

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