It's been promoted as one of the most effective techniques for the relatively-web-savvy person to make money on the web - reseller web hosting. Presumably, all you have to do is purchase a reseller hosting account, look for clients, and watch the money roll in, month after month after month. We all have knowledge of what the publicity says in this case - reselling web hosting accounts is a no-brainer business. However, can the real truth of the business live up to the potential that the hype produces?
Before you dive into the amazing money-maker of reseller web hosting, there are a couple things that you have to remember. First off - it isn't quite as easy as it's hyped up to be. See, although you do manage to have hundreds of paying customers for your branded web hosting services, you still have to support your clients. At the very least, what this means is that you either have to hire people to deal with your support requests, or you need to dedicate your own time and effort to the cause. Now, as a reseller, you would not likely have root access to the server, thus in most cases, you have to be the agent between your customers and your web hosting service provider when support requests surface.
The next area is probably where you're going to walk into the biggest obstacles -- getting clients. See, when bandwidth and disk space was just beginning to come down in price a few years back, that might have been a really good time to jump on the reseller web hosting bandwagon. But nevertheless, over the years, literally thousands of people, who have the same ideas that you do, jumped on that wagon, and unfortunately, the wheels fell off from it.
Now, this isn't intended to completely discourage you from pursuing the 'make money via reseller web hosting' venture, but if you wish to make it work for you - you need to do something that other typical business owner hopefuls haven't already tried out. You have to diversify your offers!
You will discover ways to make money with a reseller web hosting account, but the newbies who are succeeding in this market are not counting on reselling web hosting services only - they are taking on additional services. For instance, some are promoting website design services, and then subsequently providing website hosting packages to their customers. Or they cater to a particular segment or niche market. Others are taking needed services, such as shopping cart tools, affiliate management systems, and credit card processing and integrating them with website hosting services to offer to the general public. Unfortunately, the viability of running a lucrative, no-effort reseller hosting business out of your bedroom or extra room just isn't likely anymore.
Therefore, while there are ways, even now, that you can earn reselling web hosting, you're going to be hard-pressed to be able to make money through promoting hosting services as a stand-alone service.
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