As the term indicates, a reseller is someone who buys server space from a hosting company and sells Web space to other end users. Generally, reseller website hosting is done by small hosting companies that buy a reseller hosting plan and sells it to other people. However, there are many big players in this field who do the same thing, but on a much larger scale. Large companies usually take server space on rent from very large hosting services and sell this space to users.
When they sell to buyers at the regular rate, resellers can often pocket the difference. When somebody buys through the reseller, they get a commission. This is how resellers make money.
For example, when you buy a hosting package of 1,000 MB space and bandwidth, you may break it up into 10 separate accounts with each account having a disk space and bandwidth of 100 MB. For the initial purchase, you may have paid anywhere between $15 and $20. Suppose you sell each package at $10, your total profit would exceed $80.
Once a customer buys a hosting plan, the reseller is out of the picture. All further communication is between the buyer and the hosting company. In some cases, hosting companies may invoice buyers in the name of the reseller. This usually occurs when the reseller is a small-scale hosting company that needs to keep up the pretence of being the actual seller.
In order to make money, resellers have to double up as the sales agents of the website hosting company. Only this can attract customers to the hosting plan.
Many people put up personal web sites and blogs. Fun websites, community websites and websites dedicated to groups are exploding over the Internet. There is always a demand for good hosting plans. This being the case, there is a lot of scope for generating sufficient revenue through reseller website hosting plans.
Reseller website hosting is a comparatively easy way to make money because you can easily find a niche that has little competition. For this, you must find some way of distinguishing your hosting plan from that of the competition. Only then will your offer stand out. One very good example is selling cheap hosting plans to the gaming community. By focusing on a small community, you can provide them with excellent customer service and build your hosting plan around the needs of this particular community. As your reputation grows, you will start attracting more and more clients, thus generating greater volumes of revenue. That is why it is quite easy for individuals or small-scale hosting companies to make money with a good reseller hosting plan.
In a Reseller website hosting plan, the reseller is effectively an agent of the website hosting company. All the plans, features and services are the same as provided by the website hosting company, but resellers are able to buy web space from a hosting company at a discounted rate.
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