There are a number of very good reasons why people are getting involved in running their own businesses online. In a recessionary economy, more people are doing this all of the time. Reseller hosting is turning out to be a great online business opportunity, because every person who wants to run any business needs to have an online presence at least, and/or a website to operate effectively in modern market places.

The definition of reseller hosting is essentially; buying into a dedicated server or hosting plan to sell services to the end user. This type of business can be started on a very small scale, and even large web-hosting companies do exactly the same thing as the small reseller, just on a much larger scale.

The advantages are many and some include; regularly recurring revenue, a massive marketplace as just about everyone wants and needs a website, currently there is not a huge amount of competition, and the small operator can compete easily with the big guys.

Basically your business buys for example; 1,000MB disk space and the same in bandwidth as a package. This package is then broken up into ten accounts, each with 100MB disk space and bandwidth. These smaller packages are then on-sold to end-users who are your customers.

The money works this way; a 1,000MB disk space and bandwidth package costs say $15 per month. The smaller tranches of bandwidth and space can be sold for $10 each per month. The reseller earns $100 and makes a profit of $85.

Obviously this explanation is a highly simplified version of the business, but it is not difficult to understand the industry and the concept that good money can be made. Buy disk-space and bandwidth in bulk, then on-sell it in smaller parts.

Choosing a bulk provider is a very important consideration, and is something that needs to be done right the first time. It is important to find a company that will meet all of your clients or prospective clients\’ needs, because it is not easy to move clients to a new host if this becomes necessary. Moving is a time consuming process, and a process which should be avoided if at all possible. Hence the need to make the right choice off the starting line.

When comparing your own options of which host to use as your provider of web space, research into the reputation of the businesses you are shortlisting. If you are to be successful in the reseller hosting sector, you will need to have a partnership with a company that offers a professional and efficient service. One step that you should take is to find out how many outages particular hosts have suffered from in the last twelve months, avoid those that seem to be plagued by technical problems.

Creating a business plan and deciding on the market to service is also very important, but creating a shortlist based on background checks of reseller web hosting companies, is also just as important. It pays to remember that you will be selling a third party product to your client, and it is your good name that is at stake.

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Author Bio: Sell your own Web Hosting, Domain Names, Website Builder, SSL Certificates and much more with the #1 Rated reseller hosting Program on the Net — Gorilla reseller web hosting

Category: Internet
Keywords: reseller hosting,reseller web hosting