Businesses Turn to Reseller Web Hosting for Additional Revenue - Reseller Success

Sadly, reseller web hosting is not the miracle money maker that many companies had hoped it would be. While it is easy to set up and manage, costs little money, and has a high margin, it is also a poor investment of time. The only truly successful web hosts are the ones that offer streamlined services to large quantities of customers. The “soft” factors that a small company can offer with reseller web hosting are not attractive enough to overcome the low prices offered by the larger firms.

What reseller web hosting ends up doing is draining the time of small technology companies. While the bad economy and slow business have increased the amount of down time for many businesses, it has also opened the opportunity for valuable usage of that time. A small company can use that time to reevaluate its business model, service offerings, or current capabilities.

Necessary free time can be used for training or infrastructure development. While these usages of time do not contribute to the short term profit margin, they ensure that when business returns with the upswing of the economy, the small company will be able to ride the upswing and grow to levels much higher than when they started.

While the short term may seem more important to many small companies now, the reality is that nearsightedness is what causes the failure of many small businesses. The credit market is beginning to thaw and loans are becoming available to keep businesses afloat during these hard times. Small businesses should recognize this and take advantage of it to position themselves best for the revival of the economy.

Reseller web hosting also has a damaging effect on the web hosting market as a whole. Potential customers who sign on first with a reseller web host are in danger of having a bad experience. Some resellers are unprofessional and inexperienced. The result is that they are simply incapable of offering good services to their clients. These clients will become jaded and may avoid working with web hosts (at least small ones) in the future. Although this effect is minimal, it is a potential hazard of the rapid influx of inexperienced web hosting resellers.

Overall, reseller web hosting is an option for a business floundering in the bad economy. However, it may prove more effective to develop a longer term strategy that will help the business thrive five years from now, rather than five months.