Today, nearly all Internet websites are hosted from hosting providers who provide the bandwidth, disk storage, and the computer servers necessary to run the websites.
Depending on the hosting product, a single server may be serving dozens to thousands of websites. A reseller will buy these resources in bulk from the hosting provider in order to resell them to customers as part of their business.
The Need for Web Hosting
Today, reseller web hosting is one of the most popular online business out there. It exists because every single website on the Internet needs web hosting services in order to be online.
The reseller reallocates his own hosting resources to his or her customers depending on their needs and what they’re paying for.
Customers will pay the reseller for their hosting services.
Depending on the business model chosen by the reseller, the hosting resources may be sold to the customer at a slight profit.
The Value of the Reseller
Generally, the reseller will add some value to his or her services beyond providing hosting accounts.
For example, many resellers perform web design or system integration services as the main part of their business.
For example, the service may be to design professional chiropractic websites.
In this case, reseller web hosting is just a small piece of the overall product.
Because there is a lot of competition in the web hosting industry, many resellers don’t run purely as a hosting provider business since it is a low margin area that is generally saddled with high advertising costs.
Challenges for Resellers
Although the reseller has the ability to order an unlimited amount of resources, it can be a lot of work to manage each customer’s hosting account.
One of the biggest problems for resellers is to match customer hosting needs with the hosting product they ordered.
For example, a customer may exceed bandwidth or CPU limitations of a shared hosting product which results in their website being taken down. It is important for resellers to manage the expectations of customers so that they choose the appropriate hosting provider product.
Also, some adept customers may try to do a lot more with their hosting account such as send unsolicited bulk electronic mail messages. This may result in problems for the hosting provider getting spam complaints.
Those complaints are generally forwarded to the reseller to deal with, thus wasting the reseller’s time and money.
That is why it is very important to manage customers carefully and make sure customers don’t cause extra trouble or work for the reseller.
It may be a good idea to use verbiage in customer contracts that will discourage them from causing trouble on the hosting side.
About the Author:
Dustin Williams is an IT Professional who currently works in the web hosting industry for a global web hosting provider. He has been working in the IT field for almost 10 years.