October 4, 2023

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5 Tips to Create A Recurring Income with Reseller Hosting Business

The web hosting industry has grown exponentially over the last few years as an increasing number of businesses, and individuals have started trying to establish an online presence. This has opened new doors of opportunities for Hosting Resellers too. Site owners that are looking to purchase hosting services are considering Hosting Resellers since they offer customized packages at competitive prices and personalized services. As a Hosting Reseller, you buy a Reseller Hosting account from a parent company where you are given resources like RAM, CPU, bandwidth, etc. that can be used to create hosting packages. With a low barrier to entry, turning your Reseller Hosting business into a profitable venture is easy provided, you follow the right strategy and stick with your business plan. 

Today, we are going to share five important tips to help you create a recurring income with a Reseller Hosting business.

Before we proceed, check out this video to understand what Reseller Hosting is – 

Tip 1. Choose the right parent hosting company

One of the most important decisions to become the best Hosting Reseller is partnering with the right parent hosting company. The reputation of your business will depend on the efficiency of services offered by the provider. The parent host should be reliable, offer scalable solutions, and robust client service support. Selecting the right parent hosting company matters, else you may have to deal with a lot of technical issues that might affect your business.

Tip 2. Focus on client service

When your clients face any technical glitch, you will be their first point of contact. Hence, when you resell web hosting services, you will need to make sure you can keep up with such queries. With dedicated customer support, you can help your clients by resolving their queries on time. Responsiveness is the key. Try not to keep your customers waiting on your reply. You could also set up a dedicated social media channel for support requests, or implement an email management tool. Remember, happier clients will stick around for long ensuring a regular stream of income.

Tip 3. Customize your services to the target market segment

When you focus on a small segment of the market, channeling your promotion efforts gets easy.  The most direct way of doing this is through your existing website.  Make it clear on your site about your customized product offerings. Competitive pricing strategy and offering services that add value to the plans can help you to retain your current customers and also open avenues for new customers. Site owners would prefer partnering with a provider that offers customized plans as opposed to an off-the-shelf service.

Tip 4. Educate your clients

Web hosting is a technical process. Many site owners are unaware of the technicalities associated with it. Hence, if you start putting out useful and relevant content that helps them understand web hosting and manage their site better, then you can position yourself as a brand that cares about its clients and not just their business. You can use blogs, social media platforms, newsletters, etc., to share the content with people. Remember, good content increases online visibility through SEO, thereby increasing traffic and increasing prospective customers. Since customers are always looking for valuable information on web hosting, creating content on the same can offer a chance to engage existing and new clients.

Tip 5. Stay connected with your clients

An essential aspect of Hosting Resellers that separate them from large hosting companies is the personal touch. While hosting companies have a team of seasoned professionals to manage client queries, there is no personal rapport since the number of clients is large. As a Hosting Reseller, since you have fewer clients, personalized services can be one of the sharpest tools in your box. This can help clients feel connected with your brand and stay loyal for a long time, ensuring customer retention and recurring income.

Summing Up

As mentioned earlier, competition is high in the web hosting market. A Reseller Hosting model allows new entrants/ web designers to start their own hosting company. And if done right, a Web Hosting Reseller business can be profitable. Once you choose a market segment and focusing on keeping your customers delighted, it will be easier to create a recurring income. Remember, research Web Hosting Reseller plans and buy the one that aligns with your business strategies. Good Luck!