Things to Remember Before Buying Reseller Hosting

Posted on March 30, 2011 by
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Reseller hosting is becoming more and more popular as people are trying to make money in every way possible. As we all start to understand more about the Internet, many of us start to realise that there are ways of using the Internet to make money. Reseller hosting falls into this category, but that does not mean it is right for everybody. In this guide, we will explore the points you should try and remember before making the decision to buy reseller hosting.

Form of shared web hosting

Remember, when stripped down to the bare essentials, every reseller hosting package is just a shared hosting package that you have the rights to resell onto other customers. This means that you still get all of the same advantages/disadvantages that you would with shared web hosting. Reseller hosting may not be suitable for you if you have a lot of websites that require huge amounts of space and bandwidth, because they will run at the same speed as a shared hosting account. This means that reseller hosting will not be the best option for both security and speed, which could be an issue depending on what sites you intend to host on your package.

More control = More responsibility

If you buy reseller hosting with the intention of selling some of your bandwidth and space to other individuals you run the risk of selling the space to people that may use your space illegally. If you have enough space to sell 50 websites then that is a lot of potential people that can cause a problem. If just one of them tries to bend the rules then the rest will suffer, leaving you with a problem. It is very hard to screen the type of people you sell the space onto, so this is a problem that you need to take on board before buying reseller web hosting. Remember, you are selling on space provided to you by another company, therefore, you are acting as a third party. You do not have access to the main control panel, which means if there is a problem you still have to go through the regular procedures. Just because you are a reseller provider it does not give you any more rights than any other individual on a shared hosting package.

Not suitable then there are better packages

Before buying any web hosting package, you have to take into account all the factors of every single web hosting product on offer. It is likely that if you are not trying to make money from hosting, then reseller hosting will not be the right package for you. If you intend to use all of the space and bandwidth dedicated to you under your reseller account then the chances are you will get much better performance from a dedicated or VPS Hosting plan, however, this is not always the case, so a high amount of research is required.

How many IP addresses can you hold?

Many reseller web hosting packages can only hold a set amount of IP addresses per single account. This means that you are limited to the amount of people you can sell your packages onto, therefore, even if you can find 50 people that want to buy website hosting it may not be an option. The benefit to this comes when you can find one person that wants to host a lot of websites, if this is the case then it is much easier because you will deal with just one person, and if you can find the right person then you can make a tidy sum.

A lot of people are doing the same

While reseller hosting may seem like a great money making idea, you have to contend with thousands of companies and thousands of individuals that have had the same idea. This means you need to think of new and interesting selling points and offer a great price, otherwise you do not stand a chance of being successful in a relatively swamped market.

Evaluate the Potential Amount of Money you can make

Before thinking about buying reseller web hosting you need to evaluate the profit margins to work out if this is a viable business option for you. You will then need to make sure that you have the right amount of time to put into your new business. This business is not a walk in the park by any means, and to make money you need to spend money and put in a lot of time and effort. The money involved in each individual hosting package is minimal, but if you sell a lot, for a long time, then you can make a tidy sum, especially if you retain your clients for a long time.

Evaluate Your Initial Expense

While you can start with low end reseller accounts which do not cost a lot to operate, the highest profits are made from comprehensive plans which can cost a lot to buy initially. Evaluating the right amount of information will allow you to make sure you start up with the right package, which will allow you to stand a better chance of success.

While reseller hosting can be profitable to some companies or individuals, many will find that when they take all of the above points into consideration reseller hosting will not be the right package for them, therefore, you need to make sure you evaluate all your requirements and needs before buying reseller website hosting.

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