Entrepreneurs are flooding the internet and finding different ways to monetize every aspect of internet businesses. One such way that has become popular is the reselling of web hosting. Reseller hosting, as it is regularly referred to, is the process of buying a hosting plan that allows the user to sell off portions at the price they see fit. This is no different than the reselling of any tangible good.
The process of reselling web hosting can be approached in a variety of different ways. To start, you have the ability and opportunity to rebrand, repackage and reinvent the sales process for any given plan. Creating your own brand of hosting and positioning yourself as the original hosting provider allows you to grow a client base over time that can in turn increase your profit revenue.
The webhosting companies allow these activities in an effort to stay competitive. By allowing the reselling of their hosting plans, they enable customers to become salesmen. Each reseller account that is sold becomes a part of their growing business, and continues to bring in further clientele for reoccurring profits. This is a win-win situation for both the company and the customers.
Reseller hosting plans also allow for individuals to start monetizing servers they have no need to update, or take care of. For those they have a growing customer base in need of hosting, this can be a blessing. There is no need for initial capital to buy and build up a hosting company of your own when you can simply repackage another company's premade plans. This option allows for recurring income that can be a better option than a simple one time commission. There is no need to explain why this company is as trustworthy as you are. You are the company, and as such your customers already have a bond of trust in your ability to please them.
Often times, individuals pushing reseller hosting have a business model that enables them to monetize their customers fully. They offer up web design, search engine optimization, as well as a slew of different options. The added hosting plan can be the secondary method to accumulate revenue, but normally can grow into a full time income all on its own. This added value has a positive influence on customers, and gives web hosting companies an intermediary party to deal with most common issues.
For those that simply need hosting for their own websites, reseller hosting plans are not the normal choice. These plans are regulated more than regular shared hosting accounts, and are priced at a higher rate. This is due to the need to regulate the resources of their servers. If they were to give out the same options for reseller accounts, there would simply be a loss of revenue due to price undercuts from reseller hosting providers. Reseller hosting is a much better choice for individuals who have the foresight to create their own brand under another company's tutelage. Saving themselves time and money, the growth and recurring income they can accumulate through reseller hosting makes it the perfect choice.
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