Boosting Revenue with Reseller Web Hosting: a Q&A

In these challenging economic times, entrepreneurs and small businesses are looking for effective ways to boost revenue by adding on to existing services and up-selling customers. Reseller Web hosting is one area that has emerged as a reliable revenue stream for entrepreneurs. Idea Cafe discusses the topic with Stephen Holford, Chief Marketing Officer at Fasthosts Internet, Inc.

Idea Cafe: What is reseller web hosting, and why should entrepreneurs consider it as a reliable revenue stream?

Stephen Holford: Reseller Web hosting has recently become a growing sector within the Internet and IT industries. As a reseller, Web space & services on a server is purchased from a hosting company like Fasthosts and resold under their own name. Ideal for small to medium businesses, resellers are able to build a unique Internet service under their own marketing program. Resellers increase profit margins while creating new long-term client relationships.

Many people find that reselling Web hosting is a highly profitable business venture, especially when resellers use an affordable Web hosting company like Fasthosts to start in this lucrative industry. Fasthosts lets entrepreneurs shape existing products as their own or create custom packages for their customers at whatever price points they choose. The unlimited bandwidth and Web space that Fasthosts provides to resellers means they have limitless means to sell web solutions at a for-profit price.

What level of tech expertise should an entrepreneur have, in order to become a hosting reseller?

Those that typically venture into reselling have some background or experience in IT. Fasthosts is one Web hosting company that offers resellers a very easy-to-use control panel. The clean design lets them access what they need without a lot of hassle. In other words, Fasthosts makes it easy to handle the administrative side of Web hosting. It’s a nice balance between the high-skilled user and the knowledgeable businessman.

Can you share some information about your experience with resellers? Do they find it easy to make profit as hosting resellers?

Reseller Web hosting is one avenue that is quickly emerging as a reliable revenue stream, particularly for small and medium businesses. Actually, a Fasthosts Internet survey showed that 80 percent of new resellers make a profit, and 74 percent found it ‘achievable and easy.’ With minimal spending up front, the low costs and recurring fees model makes reseller hosting a highly profitable business. Even in the down economy, it seems that resellers are still able to use Web hosting to their advantage.

Please share some useful tips for people, looking to find the right web hosting vendor.

Venturing into Web hosting can be a great move, but it is essential to find the right vendor first. For a smooth start, I think there are a few things that every reseller should look for in a Web hosting provider.

It is very important to find a provider with unlimited bandwidth and Web space, like Fasthosts. A provider that lets you get your hosting business up and running quickly is just as essential. It is also a good idea to find one with a user-friendly control panel. With Fasthosts, this means easy navigation and minimal work as an administrator. If a provider also offers reliable technical support and the flexibility to create custom packages for customers, then I think a reseller has found the best means possible for starting on their endeavor. Finally, make sure the service provider lets you set your own prices – if a reseller can make a significant profit on a single website sale, the provider should not restrict it, nor charge extra just because the reseller can make more money.

Has the demand for web hosting services been hit by the recession?

Web hosting is actually quite a resilient business – for example, small businesses’ websites are crucial to their success. It provides a 24/7 “storefront” for customers and costs little to maintain. In reality if businesses are looking to cut costs, their website is one of the last things they cut back on. This means that reselling web hosting is a good business to be in during a recession because small businesses are looking for effective, affordable solutions to keep their business visible. And, the continuous revenue from hosting customers means that resellers have a stable profit stream during tough times. Fasthosts offers its resellers 24/7 support to answer any questions they may have, from technical support through to marketing and customer service questions. Our reseller partners’ success is very important to us and we want to help grow their business, even in a slow economy.

What sets Fasthosts Internet apart from other hosting providers, and what are your plans for the future?

Fasthosts understands that every business is different. Entrepreneurs in the IT industry, be it experienced professionals or an established SMB, can find the flexibility they need to grow with Fasthosts. We provide unlimited Web sites, Web space, online traffic and emails to resellers so they don’t have to worry about a downed website or lost communication with customers. Resellers can also structure their business however they choose which means they control the time and resources put into their business. With so much to offer resellers, Fasthosts looks to be the hosting supplier of choice for US resellers in the future.