Indeed, there are many ways to add little extras to your business model which can provide you with a few more dollars each month. Typically, you want to look for features that don’t require a lot of work, and that your regular clients can benefit from you offering the services to them. One of those features is hosting.
Whether you rent your own server or you have a hosting account, either can provide you with a tidy little sum every month. If you have a hosting account, you will need a reseller account to make this work. And if you have a server, you will need a way to partition out the resources to individual clients. In either case, if the hosting company offers cPanel, you will be good to go.
Five Reasons Why Reseller Accounts Are Profitable
#1 Multiple Domains
Regardless of whether or not you want to earn money from clients, purchasing a reseller account will leverage your options and provide with you a better ROI. Typically, these services are much cheaper than a dedicated server, yet they provide many more features than a simple hosting account. If you want to keep your costs low, and maximize your hosting situation, the best way to do that is through a reseller hosting plan. There is quite a selection from which to choose depending on how many domains you wish to display, disk space required, bandwidth needed, the budget you can afford, and the country or data center you desire.
#2 Offer Services To Regular Clients
It happens often that individuals already provide a service to a customer. They might do custom logo design, database creation, website building, content management, or even SEO services. With a reseller plan, it is easy to add hosting to the sales funnel. Once a customer has trust in a contractor, they will more readily agree to added value services. And hosting is something everyone needs if they are working online.
#3 Fast Break Even Point
Since reseller web hosting services are relatively inexpensive, it is much easier to reach a break-even point than it is with a server. Let’s assume you sign up for an account that costs maybe $12 a month. Charging a minimal fee of $3 per month to regular clients, you have recouped your costs with only four customers. A dedicated server, on the hand, will be in the $60 – $100 range, meaning that you have to charge clients a lot more per month, or you have to find many more people that will buy your hosting service. Thus, reseller accounts are good value for the money.
#4 Fewer Wasted Resources
In addition to the monthly maintenance costs of a server, there are start up expenses and possible license fees, as well. This could become very expensive when you have hosting clients. Of course, you want to operate in at least a break-even situation, but what happens if your server is full and you want to take on more clients?
A new dedicated server will be wasteful and unprofitable, since you won’t be using the resources available. You’ll have two choices. Either spend a lot of money to service one or two more clients, or ask your clients to wait until you have a few more to cover the costs. Neither scenario is ideal. But by choosing reseller accounts, you can cheaply add a new hosting account, as required.
#5 Start Out Small
Finally, since hosting reseller plans are an easy way to get started in the business, you have less likelihood of a large investment. They allow you to start small in the beginning to test the waters. If the hosting side of your business progresses, you can at that point, decide whether you need to move to a dedicated server or whether more reseller accounts will be satisfactory for the needs of you and your clients.
Video Presentation: This fellow explains how he got started by using reseller webhosting services.