What are the benefits of reselling hosting?

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Web host reseller is a business that buys server space or other hosting resources at a discounted price from a higher-tier Web host and then resells it to its own clients. They usually purchase the hosting resources of pure-play Web hosting firms, such as those offered by Webhosting.Net, and resell those services to make a profit. To be competitive, resellers usually attempt to create “added value” for their customers through offering service enhancements.Typically, a reseller is an independent contractor who buys Web space from a hosting service provider in order to sell that same space, sometimes in smaller increments, to businesses and individuals for a substantial profit. The reseller often enhances the value of Web hosting services by offering special expertise on top of raw Internet presence provision.

Often, the reseller adds continuity to the top-tier Web host’s supply chain by servicing end-users, who are usually small business consumers. Resellers therefore fulfill the role of “middle men” by extending the revenues and reach of higher-tier Web hosts. Higher-tier Web hosts like Webhosting.Net benefit from resellers because they essentially can both “mass” and “niche” market their products and services on their behalf. The reseller then marks-up the cost of these products and service to make considerable profit. Often, those reselling hosting can achieve 20 to 40 percent margin by way of markup. This margin is easily the biggest benefit derived from reselling hosting.

Most resellers are therefore considered second-tier hosting companies, Internet service providers, Web designers, publishers, domain registrars, or individuals who wish to capitalize on the expanding market for enterprise-class Internet services. Resellers such as these prove that physically maintaining a rack of Internet servers is not required to be successful at providing Web hosting services.

Indeed, the fact that they do not maintain infrastructure means that resellers can provide additional value-added services to their clients due to cost-efficiencies. For this reason, the majority of Web host resellers are either Web developers or system integrators who provide e-business solutions to their customers. Typically, their customers want “integrated solutions,” which include Internet connectivity as a central component. Since their customers contract them for their expertise, Web developers and system integrators are usually granted the responsibility to provide hosting to ensure compatibility with the solutions that are deploying.

Consumers also select resellers because most specialize in customer relationship management. Indeed, the emergence of many second-tier Web hosts can be attributed to the growing need amongst consumers to locate a hosting provider that can provide them with enhanced customer care. While many higher-tier hosts do provide technical support, the volume of their client base can sometime prohibit them from offering extremely personalized care, especially if the consumer is new to the purchase of Web hosting services. It is here where Web hosting resellers add value, by offering their customers an enhanced and customized higher level of technical support.

Resellers are able to enhance customer care through offering more personable service and by leveraging their human resources to create more in-depth, customized documentation for their clientele. By so doing, resellers have endeared themselves to a large number of small to mid-sized businesses who purchase Web hosting services.

Many industry participants estimate that approximately 65 per cent of the client base of a typical higher-tier Web host is provided through resellers. Resellers therefore are a tightly integrated component of the overall SME segment of the Web host industry, and are a legitimate choice for hosting services. Because of the quality that many customers receive, turnover often for resold hosting services is low. making reselling hosting an extremely compelling proposition. Webhosting.Net specializes in offering fully automated reseller hosting to second-tier hosting companies. Reseller hosting rates begin at under $25 per month and capacity can grow along with a reseller’s customer base.

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