Reseller hosting and Profit Margin

[mwaraitch]

I wonder if reseller hosting ever gets out of loops of parent companies and gets into profit. Any one thinks other way?

[InFloW]

I've seen plenty of resellers make quite a bit of money it's all about them appealing to a local market. We have customers with 5+ reseller accounts all selling accounts at $10/month to their local market. They also do design and various other aspects as well. So they got several $25/month reseller accounts each with 50 customers they're obviously going to make a profit.

When things don't go well for a reseller is when they don't try to be a niche company and try to appeal to everyone like the hosts with their own servers and support staff.

[RSHosting]

There are plenty to earn if you plan out correctly choice correct hosting company for your business.

We have a few who have already move to dedicated server including the reseller plan they started with.

so just what you need is concentration and seriousness about it.

[biggest_hosting]

Originally Posted by mwaraitch

I wonder if reseller hosting ever gets out of loops of parent companies and gets into profit. Any one thinks other way?

Yes, but it all depends in your marketting strategy.

[Hostcoin]

Hello mwaraitch,

TBH, most of hosting companies in this business has started with Reseller hosting and then depending on your planning and strategies you grow

[~ServerPoint~]

Reseller web hosting package allows you first of all to have support from the main company, your experience grows as your customers base.
Once you decide to start own business. I believe you will fill it.
You can use private DNS.

[kylebacc]

Originally Posted by InFloW

When things don't go well for a reseller is when they don't try to be a niche company and try to appeal to everyone like the hosts with their own servers and support staff.

Yes and no. That is probably pretty accurate for today's hosting world. The market is just WAY to saturated with hosts, old and new, that are all offering general hosting. In the past, that may have been Just about the only way you can make it providing such a service nowadays, is to go big or go home. Build a datacenter, make sure it's run right. However, there are that small percentage of people that do make a decent amount of money selling this kind of hosting, and then do end up out of the reseller plan, and into there own servers...then it just goes from there, as big as you want to go. But even this is starting to become a saturated market. Do a search on google for "new datacenter" and see how many have been built just this year. And I'm not talking about little ones, I'm talking about 100,XXX sq.ft.

Originally Posted by ~ServerPoint~

Reseller web hosting package allows you first of all to have support from the main company, your experience grows as your customers base.
Once you decide to start own business. I believe you will fill it.
You can use private DNS.

Yes, having a larger, more experienced provider for your first can be a VERY enlightening experience. You will find out that what you like about the company, can sometimes be very hard to offer to your own clients. But you really just need to break even...and then take it from there. More than half of the new hosts that fail, ran out of the saved-up capital they had in the beginning, because they never broke even, much less made a profit. It's very important to break even hehe, but that's a little obvious when it comes to any business.

* * *

The point is, you can always make it in any business. But it really depends if you are willing to put in the money, time, sweat and blood that can be required. And many times, that's a lot harder than most people think it is. But if you can do it...do it. You will regret it if you don't. Even if you try and fail, at least you didn't run away scared from it.

Sorry to sound like a doomed preacher a bit here, but it's just how it is sometimes. Do what you love, don't hold back!

[~ServerPoint~]

I think that money should work. And you have to understaand moments when you can lose your money.
I think that your first staepa would be difficult ones, but anyway they shouldn't be very expencive.

[seo4china]

I think the profit margin in reseller hosting is huge when you serve a lucrative and marketing is properly conducted. We have added reseller hosting to our main service (SEO and internet marketing) just a few months ago and today it pays most of our operating bills, allowing us to market and grow with ease our main operation

[~ServerPoint~]

People must get what you promice them through adverising.
defrauded customer never come back to you

[berlin56]

There are a lot of resellers - including myself.. making good money

[css25]

Originally Posted by kylebacc

The point is, you can always make it in any business. But it really depends if you are willing to put in the money, time, sweat and blood that can be required. And many times, that's a lot harder than most people think it is. But if you can do it...do it. You will regret it if you don't. Even if you try and fail, at least you didn't run away scared from it.

I have to agree with you.
If you want to start your own hosting company, go for reseller first. Once you've learn enough, then you can go for dedicated server and from here, you can proceed to have your own data center . Running a web hosting company isn't easy as others thought. You need to know how to motivate yourself in the first place.

[CapsLOCK]

Reselling may teach you much. Start from that.

[Kron]

You will get much experience from reselling services but shared is a good start as well.