Things People Misunderstand About Reseller Hosting
There are some people who are making a nice living out of it and there also some who failed doing so.
So, before you jump into this lucrative business, there is definitely some true information that you need to know.
For those who want to start a reseller hosting business, they can do it with ease if they have the correct control panel.
With the right control panel, you can manage your administrative task with easy to use graphical interface.
On the basics, it looks easy.
While using GUI like cPanel's WHM (Web Host Manager), you might be able to perform task easily but things tend to become difficult if you want to install additional functions like Perl.
So, the graphic interface can sometimes be a burden making things more difficult on users.
Therefore, it is best if reseller hosts can have some technical knowledge about control panels.
This will be very helpful.
On the surface, we would think that a reseller just have to divide the resources that they have and offer it to customers.
Say that you have bought a hosting plan for $100 with 80GB of storage space.
What you would do is to resell the hosting into bundles of 25MB at $5 a month.
For every 1GB, you can offer 40 plans and in total you will have 40 x 80 and that comes to 3200 plans.
If you multiply it with $5, it would be $16000.
So, your profit will be $1500 because you have to pay $100 for the reseller account.
It all sounds easy on mathematics but being a real reseller hosting is more than just mathematics.
The problem is not the maths.
The idea of having all your resize plans bought out is kind of impossible.
A reseller hosting provider must also pay attention to other details like bandwidth.
The bandwidth you have is also limited like the space you have.
So, the amount of traffic that you can support is really a question make because it will depend on your customers.
Many resellers make mistake by overselling.
Therefore, it is always best not to oversell your resources just for the sake of some petty cash.
Provide your customers with quality hosting and your business will grow.
Running a business online is definitely not an easy job.
There are risks involve just like any other traditional businesses.
The best thing to do is to take a step at a time by looking at the benefits and disadvantages before making decisions.
If you think that you can handle the challengers that a reseller hosting business gives you, then only you start the business.