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Can I Actually Make Money By Using A Reseller Web Hosting Membership?
It's been marketed as one of the fastest ways for the relatively-web-savvy man or woman to make money on the web - reseller web hosting. Apparently, all you have to do is get a reseller hosting account, find clients, and watch the money roll in, month after month after month. We all understand what the advertising says in this situation - reselling web hosting accounts is a no-brainer business. However, can the actuality of the business live up to the conditions that the hype creates?
Before you dive into the great money-maker of reseller web hosting, there are a couple things that you have to know. First off - it isn't quite as simple as it's hyped up to be. See, even if you do manage to have hundreds of paying buyers for your branded web hosting services, you still have to support your clients. At the very least, this implies that you either have to employ the service of people to handle your support requests, or you need to dedicate your own precious time to the cause. Now, as a reseller, you may not likely have root access to the server, so in most cases, you have to be the intermediary between your customers and your web hosting provider when support requests surface.
Another area is probably where you're going to run into the biggest obstacles -- getting clients. See, when bandwidth and disk space was just beginning to come down in price a number of years back, that may have been a really good time to jump on the reseller web hosting bandwagon. Nonetheless, over the years, literally thousands of people, who have the very same ideas that you do, jumped on that wagon, and sad to say, the wheels fell off from it.
Now, this isn't meant to completely discourage you from pursuing the 'make money via reseller web hosting' business, but if you expect to make it work for you - you have to do something that other typical business owner hopefuls haven't already done. You have to diversify your offers!
You will find ways to generate an income with a reseller web hosting account, but the newcomers who are succeeding in this market are not depending on reselling web hosting services exclusively - they are taking on supplemental services. For instance, some are promoting website design services, and then subsequently promoting website hosting packages to their customers. Or they cater to a targeted segment or niche market. Others are taking essential services, such as shopping cart systems, affiliate management systems, and credit card processing and incorporating them with website hosting services to offer to everybody. Unfortunately, the viability of running a profitable, no-effort reseller hosting business out of your bedroom or extra room just isn't likely anymore.
That being said, while there are ways, even now, that you can generate an income reselling web hosting, you're going to be hard-pressed to make money through offering hosting services as a stand-alone service.
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