Pricing your Reseller hosting packages right. Choose the right pricing model
An explanation on what resell web hosting really means with an overview of the benefits of being a web host reseller. A guide on how you can price your reseller web hosting packages to suit your business’ and customers’ need.
Reselling web hosting services is a fun and profitable business that can act as your standalone or supplementary entrepreneurial venture. On top of that, it is the easiest online business to can start as all you need is to choose a reliable reseller web host. On top of that, you don’t require any networking equipment and technical staff all these are provided by the hosting provider all you do is provide customer support. But the question most people ask is – what is resell web hosting? How do I price my reseller hosting package? How do I choose the right pricing model?
What is resell web hosting?
Basically, resell web hosting mean you buy reseller hosting packages from a parent web hosting company and sell them in such a way that your company is the main web hosting provider for your clients.
Some of you will ask – how will I benefit from reselling web hosting services? The most known benefit is that when you buy web hosting services in huge chunks you get discounts and intern you will be able to resell this services to your own clients at any price you chose. For this reason, you are able to package your own web hosting plans in a way that they will fit their needs and you are also gaining some huge profits.
By becoming a reseller web host you get full control over your hosting business, such as the marketing and the packaging of the hosting plans that you will be offering. On top of this, you also have control over the pricing of these plans. Here is an overview of the benefits of reseller web hosting:
- You get more control
With reseller web hosting, you as a business own your control panel with which you are able to create your own hosting packages that you offer ever client.
- Little investment
You don’t need to buy expensive networking hardware and employ the costly staff to support your systems, these are always a necessity whenever you are starting a hosting business from scratch. In this way, the only investment you will need is the purchasing a reseller web hosting package, marketing and support staff.
- You get to build your own brand
You clients will know that you are the main hosting provider as you will be using your own company’s website and brand. You also get to build a good rapport with your clients.
- Lots of profit
Here, you get to set the prices of your hosting packages, meaning you will be able to maximize profits. This is different from affiliate web hosting where you only earn when a customer you refer to the web hosting company buys a hosting service. With reseller web hosting you get to earn directly.
- Easy and simple to start up
With reseller web hosting all you to is signup to a reseller web hosting package and the web host will provide you with the networking tools and the technical support you require throughout your business.
Yes, you have bought your reseller web hosting company from the parent web host, the question now is – How do I price my reseller hosting package?
Pricing your reseller hosting packages right.
Here we are going to outline some of the considerations you should keep in mind when piecing your reseller hosting packages. First, we are going to provide you with an overview of how you can price as per the client’s perspective and what the client expectations are and how they affect your reseller hosting package pricing.
Price your web host from the client perspective
When you are in the process of pricing your reseller hosting packages you will have to determine your clients’ expectations. You will need to determine who your target clients are i.e. Are they small business owners? Or are they developers?
In case your clients have not idea about web hosting services and how they work they will always go for a less costly hosting package that has lesser resources or features. Basically, your clients would be happier with decent pricing and this will also help you avoid the stress of resource abuse etc. On the other hand, if your clients are more knowledgeable in web hosting then they will opt for costlier packages that are more resourceful. This instance with then gives you room for an upgrade option for your reseller hosting packages.
The upgrade option
Web hosting Upgrade
Of cos, other clients will be willing to pay more to get more email accounts or databases, but they may not be willing to accept an abrupt increase in prices. You should there for consider advertising non-resource upgrades such as more support or even discounts when it comes to domain creations. The most important thing is making your clients feel that they are getting what they pay for.
Bottom line, you should always know that more hosting resources and services will actually cost you more. So, when you have more clients who require more resource then you will have to upgrade your reseller web hosting account to cater for your clients’ needs. Therefore, you will need to get services that you are able to afford. Meaning if more of your customer can upgrade their hosting account then you will be able to upgrade your account – this will help you provide them with more resource, manage your customers and also give room for your hosting business to grow.
Choosing the right pricing model
Basically, your pricing model will be directly influenced with your parent web host’s pricing model and your business goal. First, choose the most affordable reseller web hosting package, then understand your business plan and goals. These two factors will assist you in choosing your hosting pricing model.