Reseller Web Hosting – or shared hosting?

Reseller web hosting is the business of distributing web space for a price, after subscribing to a company with a web server, who in turn provides large volume web space. The reseller web hosting business involves the liaising between the website owner and the owner of the web server. In cases where the website owner directly approaches the server operators for space, the client maintains a shared account with the web server company. In contrast, the reseller web hosting business procures large volume disk space and bandwidth, which is in turn redistributed to multiple clients under this one intermediary client to the web server. Reseller hosting comes with the added advantage of merely providing backup support to subsidiary clients while leaving the actual maintenance obligations with the host server company. However, as a liaising agent, he would promote his image and garner good will if he were to provide uninterrupted website operating conditions for the client. This involves walking a delicate tightrope of tact and diplomacy. One of the major selling points of the reseller hosting business is the apparent “unlimited” resources available to the clients. Technically however, if all the clients were to exploit this offer simultaneously, the server would breakdown and no further activity would be possible until demands on the server are judiciously regulated. Therefore, mechanisms should be installed to monitor individual accounts for hyperactivity, where the client is invited to join an upgrade plan, and also for dormant accounts that require fewer resources which can be redistributed back into the network. A client with the need to maintain multiple independent websites would also be prudent to enter the reseller web hosting business, as his status here would grant him lower overheads and greater inventory. Essentially, reseller hosting serves as an agency for the web server company, deriving commission benefits for providing clients to the company. It could also be a marketing agency that makes the sale to the client, and then drops out of the picture. But many entrepreneurs have not regretted the decision to buy the web space from the company at a lower cost and either maintain multiple dedicated websites or redistribute at higher cost and still make a tidy profit margin, even after maintenance.

The importance of reseller web hosting is apparent in the potential for entrepreneurs to tap the reputation of established brands; additionally, by easily out sourcing backup operations, they can carve out a healthy profit margin without further financial or operational commitments. However, should they assume responsibility for the support mechanism for web hosting, which is integral to the uninterrupted service from the web server and the smooth working of individual websites, they could still open up considerably important channels for revenue by establishing dedicated e-business sites. The operator maintains control with the absolute prerogative to create, freeze or ban a site. The reseller hosting business can reap in rich dividends, if an entrepreneur with integrity can establish a reputation among clients as a steadfast operator, who assumes more responsibility for the network than he needs to. The commissions involved on a monthly per sign up basis are very attractive and the business seldom incurs forbidding or unforeseen expenditures.

1 comment:

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