Why Reseller Hosting is Popular
The pandemic has forced many businesses to make fundamental changes to their business strategies, often as a matter of survival. Under severe financial pressure because of a collapse in earnings, they have been forced to look at moving to an e-commerce platform or instituting remote working and working from home. This obviously leads to the costs of upgrading the IT infrastructure. Outsourcing their IT infrastructure to reduce capital expenditure is an attractive option.
Outsourcing gives the opportunity to move the operational systems to a service supplier. An alternative is to keep things as they are and use the managed service supplier infrastructure to develop the new systems that are needed.
As a result, there is a substantial and growing market for managed service providers who offer end-users infrastructure and support services. However, for a new entrant to the managed services arena, it can be a costly business, to set up, manage and operate hosting services to multiple clients from your own infrastructure.
What we are currently seeing is the larger managed service providers offering hosting services to reseller hosting businesses. Resellers operating hosting services on a major managed service provider’s infrastructure that can be resold under their own branding are especially popular.
The Benefits To A Customer Using Reseller Web Hosting
There are many companies that are moving to web-based e-commerce outlets or expanding their web presence with new or updated websites. This often means that they will need to invest in new infrastructure and develop websites to enhance their web presence.
That is where reseller hosts can help. By using a hosting provider’s infrastructure, a business can fund a hosting plan from operational expenditure rather than buying infrastructure and services from scarce and expensive capital expenditure.
also check What is the Meaning of Reseller Hosting
The Benefits To A Reseller Using Reseller Web Hosting
As with the end-user, a reseller can defray infrastructure costs by piggybacking on a large managed service provider’s infrastructure. It could even be that by the reseller using their own branding, the ultimate end-user might not even know that the reseller is itself using someone else’s infrastructure.
Another benefit is that the reseller can, in some environments, such as VPS manage their infrastructure and support several clients. Managed service suppliers offering reseller services are increasingly using VPS management software like SolusVM that provides their resellers with the tools to do this. HostSailor is one such.
The best Profit Margin is achieved by having the maximum number of satisfied clients in the correct hosting plan, at a hosting fee acceptable to them and to you. This means knowing the client’s needs and adding in some headroom for their growth or for adding new clients.
How Do I Build My Reseller Hosting Services?
The short answer is that there is no magic bullet, the full answer is by marketing and satisfied clients. Spreading the word. Remember that according to IBM it costs ten times more to acquire a new customer than to retain an existing one. You need to keep your existing customers happy by providing high-quality services at an affordable, and market-related price.
The advantage of using a Reseller Hosting service is that you can concentrate on your own business, without worrying about the management of the underlying infrastructure.
There is a large and growing reseller hosting market. This provides large managed service providers the opportunity to profitably support a reseller hosting service to qualified resellers. Reseller Hosts can then sell hosting services to end-users.
The key is providing an attractive range of hosting plans and options at attractive prices to potential resellers, backed up by the highest quality support services.