How To Start A Reseller Web Hosting Firm

55Reseller web hosting refers to an arrangement where one splits resources (such as bandwidth and disk space allotted to them by the parent provider) which they sell to third-party end users. It is normally offered by firms which act as intermediaries between the parent host companies and the end users. Here is a guide on how to start such a venture.

Draft an elaborate business plan, outlining things such as goals and capital needed to operate. Determine the specific market segment you intend to focus on while identifying the potential clients and their preferred products. You could also look for an untapped niche and come up with a plan to serve specific needs.

As mentioned earlier, reseller hosting firms are usually run by intermediaries. As such, they do not need specialized technical skills or equipment to run their firms. However, you may need a computer to help you manage the accounts and some basic knowledge on how to do this. Look for parent providers who are willing to offer end users the necessary technical support.

Establish your firm legally. There are various legal formats in which a firm can be registered, such as sole proprietorships and limited liability companies. Research each of these exhaustively and determine which suits your situation best. Before coming to a conclusion, consult an attorney and tax specialist to determine the liability issues as well as fees applicable to each format.

After this is done, you can now proceed to choosing the supplier. Select a firm that delivers quality services at reasonably low prices. If this is your first venture, it is advisable to choose a volume discount provider and then resell each individual plan at competitive rates. This has two distinct benefits; it requires less financial input and the running costs are inversely proportional to customer base.

There are several other attributes to consider when choosing a host. Look for a provider specializing in this type of hosting and whose services are reliable. Their resale model should also be structured in a way that will enable you gain substantial profits so that you can rapidly break even. If you are embarking on a new venture, look for companies willing to offer some assistance in the start-up process.

When this is done, you should proceed to market your reseller web hosting firm. You should target small firms and individuals. You can use social networking platforms to advertise so that you can reach a wide audience at minimal cost.