A couple of years back – ok, take it all the way to a decade ago – there was a new fad in reselling. People were suddenly aware of a relatively easy way of making a little cash on the side. Of course, those that really dedicated themselves to it, did make a lot more than just pocket change. But for the majority, it was nothing more than beer money.
The fad was web hosting reselling; and everyone was making a killing on it.
Or so it seemed.
Some managed to make a decent amount of money with their ventures and then moved on with their profits after cashing out while others stuck it out and built their own hosting businesses.
Today, people ask if the market isn’t saturated in the web hosting reseller game. They think that the market is controlled by the big guys that have the money and the reputation to draw in clients with little to no effort by offering very low prices. And so, they give up without even trying.
The question we need to answer now is: “Can you still make money in 2016 by becoming a hosting re-seller?”
The answer is “Yes.” But you need to work towards it – very hard. Below are some pointers for you to follow if you plan to make it big in the hosting reseller business today.
- You will need dedication. Sales and marketing has become very competitive in recent years. It is a dog-eat-dog world and if you want to build a successful reseller business you will need to dedicate your whole life to selling the socks off of your business.
- If you’re no good at marketing, get someone who is. The main task you will have with your reselling business, as mentioned above, is selling it. If you are not a good salesperson, find someone who is and move on to doing something more useful – accounting, management, IT… find your niche.
While you might not be able to afford to pay someone when you’re starting out, you could offer them a share of the business or the year-end profits.
- You will need to become an affiliate of a hosting company that is reliable. Owning a reselling business means that you will need to be sure you’re selling a reliable product. Your reputation hangs on theirs. So, choose your provider wisely.
- Never disappoint your customers. You should never leave your customers and potential clients feeling like you aren’t serving them well. Try to come up with the ultimate number of package offers spread across the board. Vary the packages as much as you can. Listen to what your clients ask for and create new ones if there are more than a couple requests about it.
This brings us to…
- You aren’t beyond reproach. You are the small fish in a big (huge) pool – you have yet to grow. This means you need to learn everything there is about the business and no one can give you greater pointers than your own clients.
Listen to comments and take complaints seriously. Have a mechanism put in place that will handle your relationship with your customers – a CRM solution is a good idea.
- Alternatively – specialize. The opposite way to go would be to head in one direction and clearly state that you specialize in just one specific kind of hosting. Offer Linux Hosting, X GB disk space, Unlimited [insert feature here] and sell it to a particular target market or demographic. Staying focused on a single target will make your sales life somewhat easier as you get to know who exactly it is that likes your products.
- Start dirt-dirt-cheap. For the first year or two be satisfied with just breaking even – or at most making enough of a profit to buy you a new china set. Don’t be too greedy. Dedicate all efforts and profits to pushing your business further. Reinvest as much as you can back into your business, but most importantly … offer cheap prices until you can afford to ask for more. Attract your customers with a cheap offer and only when you have a decent base should you start hiking the price up… gently.
- Build a rapport with the support guys at the hosting company. Seriously, be nice and warm with the tech guys back over there. They are the most under-appreciated people on the planet. Customer services staff – in an IT company and that are only called upon when something goes wrong and tempers tend to flare – have an ungrateful job. Appreciate those people’s effort, be nice to them and they will go the extra mile to help you out should there be a glitch in your hosting shares or in case there is a problem with your clients that you can’t resolve.
This also means you will be able to offer quality support – something that is a sign of a professional company.
So, put these points together and there is no reason why you shouldn’t be making money online with your hosting re-seller business.
