While a lot has been said about how to start a Reseller Hosting business, not much is available to help existing small and medium-sized resellers stay profitable. Like any other business, the hosting reseller business offers some unique challenges. Today, we will offer five tips to existing resellers on how to stay profitable in the highly competitive Reseller Hosting market.
1. Regularly assess the demand and supply of web hosting services
While you might have a set of clients that are happy with your services, you can’t stop looking for new clients. A website can decide to move to a different provider or shut operations at any time. Hence, you need to be prepared. Ensure that you are in sync with the changing demands of the market and prepared to launch adequate hosting plans when needed.
2. Understand your costs
While you don’t have to spend on the infrastructure, you will have fixed and ongoing costs like the reseller plan charges, any services availed for designing your website, operating costs, etc. You can stay profitable in the Reseller Hosting market if you get a grip over your costs and keep them in check.
3. Time is Money – track your non-billable hours
Let’s say that a client is facing a small technical problem and calls you for support. You try to troubleshoot the issue but don’t succeed. You ask for some time, talk to the web hosting company, get a solution, call your client back, and ensure that the problem is solved. However, do you know how much time you spent doing this? These are non-billable hours but can eat away into your time, keeping you away from other important tasks. Hence, it is essential to track these hours and factor them in your costs.
4. Set the price of your hosting packages carefully
This is probably the trickiest and the most important aspect of staying profitable in the Reseller Hosting market. Usually, the market determines the price range of a particular hosting service. In other words, if you plan to launch VPS services, then there might be existing resellers and hosting companies already targeting your market segment, providing services within a certain price range. Hence, when you enter the market, you might either try to match the price or offer a discount. Under both scenarios, staying profitable can be difficult if you don’t factor all your costs. Hence, ensure that you price your packages optimally.
5. Consider business partnerships
While promoting and marketing your reseller brand can get you clients, another way of ensuring a steady flow of clients is via business partnerships. Tie up with businesses that have new site owners approaching them for services like web designers, developers, UI/UX agencies, etc. These businesses can offer you ripe leads at a small commission – a smart way to ensure a steady influx of prospective clients without spending a lot on marketing.
Remember, the web hosting industry is highly competitive and staying profitable can be a challenge. Hence, it is important to have a plan in place. Also, you must always keep yourself updated on any new developments in the market or the web hosting space. We hope that these tips help. Good Luck!