A Profitable Method That's Often Ignored....

by DP55
13 replies
I don't seem to see many people talking about it (doesn't mean no one is doing it!) but getting a reseller hosting account and selling hosting to businesses is a fantastic way to get a residual income. I think it's well underrated!

It's all in the way you lure in customers. Think outside the box. Just remember that everyone loves freebies That doesn't necessarily mean create free websites. Whilst it does work; it's very time consuming.

Anyone else running a similar model?
#method #profitable
  • Profile picture of the author Smith18
    I've seen reseller plans being advertised on HostGator and other hosts I'm with but never thought much of it. I always thought it would be better to start your own hosting company from scratch, but I guess that would cost more. I wouldn't think there would be a giant profit margin from some of the prices they re-sell at?
    {{ DiscussionBoard.errors[8146208].message }}
  • Profile picture of the author echelon
    I thought about reselling hosting at some point but I read that it required a lot of customer support. Based on your experience is it a venture that requires a lot of time investment?
    {{ DiscussionBoard.errors[8146219].message }}
    • Profile picture of the author WhereDoIEvenStart
      This seems like an ideal long term solution. I wasn't so certain, I've thought about it before.

      But what I need to ask is this:

      Is "getting a reseller hosting account and selling hosting to businesses" method the same as being an affiliate of a hosting service?

      E.G. Such as registering with an Affiliate Program like this one - HostGator.com - We Eat Up The Competition

      Or is it something entirely different?

      One thing I don't know for certain regarding the "residual" income you've mentioned is this -

      Does it mean that because these hosting services requires monthly payments, and since you referred people to sign up for them and they have to pay monthly then does that mean you earn a commission every month for as long as whomever you referred to sign up and registered for their hosting service continues to use that service?

      Or is it just a one time commission (no re-occurring) where you only earn a single commission when they initially sign up?

      If it's the former, then that's a very effective long term solution or at least it seems to be to me. As long as I get everything done correctly, I meant.
      {{ DiscussionBoard.errors[8146302].message }}
      • Profile picture of the author paul54
        I've been "kicking" the idea around and talking to my hosting company about. Still trying to decide what I want to do with it.
        {{ DiscussionBoard.errors[8146449].message }}
  • Profile picture of the author Gary Ning Lo
    No it's quite popular.. Know a lot of marketers doing it.. I also do it

    You get recurring income for years...

    Cheers,

    Gary
    Signature
    -------------------------------------------------------------
    {{ DiscussionBoard.errors[8146463].message }}
  • Profile picture of the author JSProjects
    Just understand that it is a full time business. I've done it before and it was a pretty big hassle - since I was a one man operation.

    If you're looking to earn a little from hosting it's a lot less time consuming to go the affiliate route. If you've got decent design skills, heck - if you can install & customize a Worpdress blog, it's not too hard to find clients and offer your services for a small fee and get most of your earnings from the affiliate commissions. The payouts can be pretty substantial. ($100+ per referral)

    I used to offer Wordpress installations & customization for a small fee (About $15) and get a 50% conversion rate on hosting signups.
    {{ DiscussionBoard.errors[8146564].message }}
    • Profile picture of the author DP55
      Originally Posted by Smith18 View Post

      I've seen reseller plans being advertised on HostGator and other hosts I'm with but never thought much of it. I always thought it would be better to start your own hosting company from scratch, but I guess that would cost more. I wouldn't think there would be a giant profit margin from some of the prices they re-sell at?
      There's A LOT of cost involved in setting up your own hosting company. It's a far bigger commitment than buying a reseller account and a lot more that could go wrong! I would consider it further down the line (maybe) but for now I'm sticking with this!

      With your reseller account (cheapest being about $25/month) you can make many accounts and create different packages or tailor make each account to suit the customer. You have a massive amount of disk space and bandwidth available so you can have many many customers and charge whatever you want whilst only paying $25/month. There's a ton of money to be made.

      Originally Posted by echelon View Post

      I thought about reselling hosting at some point but I read that it required a lot of customer support. Based on your experience is it a venture that requires a lot of time investment?
      There is a moderate amount of customer support needed but through trial and error I've managed to dramatically reduce the time required. Also the main business model I'm running means the customers rarely run into problems. The way I run it is very different to a standard hosting business. I've been clever

      Originally Posted by WhereDoIEvenStart View Post

      This seems like an ideal long term solution. I wasn't so certain, I've thought about it before.

      But what I need to ask is this:

      Is "getting a reseller hosting account and selling hosting to businesses" method the same as being an affiliate of a hosting service?

      E.G. Such as registering with an Affiliate Program like this one - HostGator.com - We Eat Up The Competition

      Or is it something entirely different?

      One thing I don't know for certain regarding the "residual" income you've mentioned is this -

      Does it mean that because these hosting services requires monthly payments, and since you referred people to sign up for them and they have to pay monthly then does that mean you earn a commission every month for as long as whomever you referred to sign up and registered for their hosting service continues to use that service?

      Or is it just a one time commission (no re-occurring) where you only earn a single commission when they initially sign up?

      If it's the former, then that's a very effective long term solution or at least it seems to be to me. As long as I get everything done correctly, I meant.
      It's very different to an affiliate program. I started off doing that but I'm not a fan of one-off payments. I like residual income. The hosting customers pay me monthly for the hosting and I cut out any need for an affiliate program. As far as the customers are concerned I'm in no way affiliated with any other hosting company.

      Originally Posted by JSProjects View Post

      Just understand that it is a full time business. I've done it before and it was a pretty big hassle - since I was a one man operation.

      If you're looking to earn a little from hosting it's a lot less time consuming to go the affiliate route. If you've got decent design skills, heck - if you can install & customize a Worpdress blog, it's not too hard to find clients and offer your services for a small fee and get most of your earnings from the affiliate commissions. The payouts can be pretty substantial. ($100+ per referral)

      I used to offer Wordpress installations & customization for a small fee (About $15) and get a 50% conversion rate on hosting signups.
      Again, I prefer residual income and don't like getting paid just once. It's a constant mission to find customers. As I mentioned above I've organised it so that there's a lot less time spent on current customers and it's mostly about adding more than maintaining what I have. Whilst hosting affiliate programs are nice payouts (if you can be bothered to keep finding new customers) I'd much rather have many customers paying $XX/month for years to come than to constantly promote and get larger one-off payments.


      In summary; if you spend time planning out how you can use your reseller account effectively you can save a lot of time and make a nice amount of money
      Signature
      Business In A Box
      Let me set up a mostly-automated business for you. $XXX-XXXX/month. Marketing + website included! PM For More Info - Only $97. Only 3 Available!

      Brand New Private Method
      {{ DiscussionBoard.errors[8147251].message }}
      • Profile picture of the author WhereDoIEvenStart
        Originally Posted by DP55 View Post

        It's very different to an affiliate program. I started off doing that but I'm not a fan of one-off payments. I like residual income. The hosting customers pay me monthly for the hosting and I cut out any need for an affiliate program. As far as the customers are concerned I'm in no way affiliated with any other hosting company.
        Thanks for the clarity, I wasn't so sure. And just like you I also prefer to have a residual passive type of income because I think that would be a long term solution and that is what I rather have.

        Now that you've mentioned it this is definitely something I must look into. Since websites are created daily, hosting will always be needed and in demand. That is unless whoever wants a website just for fun and isn't serious then they can stick with free hosts but more than likely this method to resell hosting is offers that potential customers can't refuse simply because they need it for their websites.

        Originally Posted by DP55 View Post

        Again, I prefer residual income and don't like getting paid just once. It's a constant mission to find customers. As I mentioned above I've organised it so that there's a lot less time spent on current customers and it's mostly about adding more than maintaining what I have. Whilst hosting affiliate programs are nice payouts (if you can be bothered to keep finding new customers) I'd much rather have many customers paying /month for years to come than to constantly promote and get larger one-off payments.


        In summary; if you spend time planning out how you can use your reseller account effectively you can save a lot of time and make a nice amount of money
        That's pretty much what I was thinking. Finding and referring customers repeatedly to register/purchase hosting and only getting paid one time commission for the initial registration and setup isn't a whole lot of income or profit generated.

        If you would earn a commission percentage every month when they remain a customer at that hosting service and/or when ever they renew their account then it saves the trouble of having to find large amount of customers for those 1 time payments from the web host services' affiliate programs.

        Btw, are there any guides or systems (WSOs) on how to execute a plan like these reselling web hosting methods?
        {{ DiscussionBoard.errors[8147772].message }}
  • Profile picture of the author CyberAlien
    I definitely agree that hosting can bring in a stable income and can be very stable since you're dealing with larger amounts of users at lower prices. BUT you have to understand that there's a TON of support involved in the hosting industry and it can become a huge headache.
    {{ DiscussionBoard.errors[8147777].message }}
  • Profile picture of the author WillR
    I would prefer using a hosting affiliate program over selling reseller hosting. Too much ongoing support and time involved in the latter. Just get your commission and be done with it.
    {{ DiscussionBoard.errors[8147855].message }}
  • Profile picture of the author DP55
    It's all in the way you get your customers. Apart from any down time the server has I really don't have to offer much support.

    @Chase - That's half the reason I decided to start this in the first place. It's a very stable income. Your customers stay with you for years (mostly) and if I lose a couple of customers a month it isn't a big hit on my income. And it's easy to replace them
    Signature
    Business In A Box
    Let me set up a mostly-automated business for you. $XXX-XXXX/month. Marketing + website included! PM For More Info - Only $97. Only 3 Available!

    Brand New Private Method
    {{ DiscussionBoard.errors[8148560].message }}
  • Profile picture of the author DP55
    If anyone needs help setting this up just drop me a PM. It definitely sounds more complicated than it is!
    Signature
    Business In A Box
    Let me set up a mostly-automated business for you. $XXX-XXXX/month. Marketing + website included! PM For More Info - Only $97. Only 3 Available!

    Brand New Private Method
    {{ DiscussionBoard.errors[8150126].message }}

Trending Topics