Is a Web Hosting Reselling a Good Small Business for You?
A Home Business Article Contributed by Elizabeth Fox-Wise
What is a Web Hosting Reseller and Can It Be a Small Business?
A web hosting reseller is exactly what the term implies. a Web Hosting Reseller buys Web Hosting Space from a larger Web Hosting Company in large sizes and then resells that space to other small business owners in smaller parcels.
Not only can it be a small business, but many people are already running Web Hosting Reselling as a very lucrative small business. And according to research being done, there are new people entering this industry daily and there still seems to be plenty of opportunity for more small business to be built on the reselling of web hosting.
How Would My Small Business Make Money As a Web Hosting Reseller
The same way that most all resellers realize a profit. Typically a reseller of goods will buy their goods in quantity and then each them out at a higher price to the portion of the market who only wants one, or a couple, of his products. A small business owner who is a reseller of web hosting will do the same thing. The small business web hosting reseller buys web space from a larger web hosting company. Typically the reseller can get 1000 MB of space at a rate of $15 month.
The the web hosting reseller markets that space to other small business in need of a smaller parcel of web space. The web hosting reseller is free to set his own rates for the space, but to stay competitive with the market will usually offer 25 MB of web hosting space for $5 a month. His 1000MB of space will translate to 40 customers each receiving 25 MB of space at $5/month for a total of $200 month generated from that 1000 MB "parcel" of web hosting space.
To grow the income base for your new small business, after you have found customers for all of your existing space it is time to purchase and market another 1000 MB and so on until your small business is the size that you want and is generating the income you are looking for.
Who Do Large Web Hosting Companies Want to Use Small Business Web Hosting Resellers?
The same reason that any industry wants resellers of their products. The large Web hosting company needs to get $25 per month for that 1000 MB of space to realize the profit they are looking for on it. As soon as they sell that space to the web hosting reseller, they have realized their business' goal. They do not have to worry what happens to the 1000 MB of space after that point. Finding one customer was a lot more cost effective than if they had to find the forty customers that the web hosting reseller small business will now set out to find.
This does not mean that they do not want you to be successful selling that web hosting space though, because they know that if you see quick success you will be back to make another purchase. For this reason, many web hosting companies will provide some support to resellers of their web hosting space.
