Reseller Hosting Explained

Ashish Jain

Reseller Defined:

The term Reseller according to the dictionary means to sell again i.e. to sell a product or service to the public or to an end user, especially as an authorized dealer, while making sure that you make a profit on the sale.

Reseller Hosting

Reseller hosting is no different either, a reseller buys a Web hosting package from a hosting company and tries to sell it independently. The profit for the reseller lies in either the discount or in the commission s/he gets from selling an account.

For example: The reseller might purchase a package whose features are valued at $100 for $90. So, the reseller stands to make a $10 profit on selling the package to customers. Normally as the customers increase, so does the profit margin for the reseller.

Or, you can get some money by earning commissions from a hosting company. This happens when you refer potential customers to the hosting company. If the customer signs up with the company then you earn a small recurring commission until the customer uses the services. Most web hosting companies try to outsource their services to resellers as it helps them to extend their business reach without the cost of marketing and sales and also helps them to concentrate on the business side of things.

What can be resold

As a reseller you can decide what kinds of services you can sell. You can provide shared, dedicated or co-location web hosting or merchant accounts, store fronts etc.

If you go with hosting then it might be useful to offer some other hosting related services like domain names, search engines etc.

Of course, if you have problems selling these value added services in the beginning then you can sell them later.

The cost and resources involved

The cost of becoming a reseller and the equipment and people required in order to be successful depends on many factors.

If you just plan to earn commission by referring people to the hosting company by using the Internet, then you do not have to put up a lot of money, all you need is an Internet ready PC and an Internet connection.

For a small start-up not a lot of money and resources are required. You can purchase a good reseller package from a hosting company by paying them some money upfront. All that is needed is a decent computer that can manage the accounts of customers and a good Internet connection.

It is advisable to start small if you are very new to the concept of web hosting and reselling. Then you can expand as you go on and start getting more and more customers in which case offering domain registration is also a very good way to make profits.

If you have the money and the experience then you can go as far as buying all the server equipment required, in which case you will also be responsible for all the server maintenance costs.

The other option could be leasing a server as this will be cheaper than buying the server, but here as well you are responsible for all the maintenance and running costs of the server.

In the above two cases you also need to make sure that you have multiple connections with the hosting company so there are no complications in case a connection goes down.

Upside

The best thing about being a reseller is that you do not require a lot of upfront investment.

There is no need to have a lot of technical knowledge. Account management and Internet skills are all that is required. However, it would be really handy if you have some sales and marketing experience so you can interact with your customers better.

The hosting company generally provides and maintains all the hardware and software.

You do not need to hire a lot of IT staff to provide support. Providing basic support and leaving the more technical issues to the parent company support staff can be easily achieved. Downside

Support can sometimes be delayed, as you are dependent on the parent company to handle the technical aspects. If there is a delay from their side then you along with your customer are affected.

Sometimes customers leave you if they find out that you are a reseller and not a real hosting company.

Tips for marketing yourself

If you are starting out on a small scale then visiting message boards and posting your services there is a good idea. A lot of potential clientele with relatively small hosting needs also frequent message boards and outline their desired services.

Having contests is a great idea for bringing awareness and interest about your services.

Online ad campaigns, signatures, and text links are very helpful techniques.

Once you have gotten a bigger budget then you can go for Google ad words or PPC search engines.

The best strategy is to try out various combinations of these approaches and work out the best one for your needs.

Ashish Jain M6.Net http://www.m6.net

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Did You Know?

What is web hosting? What is web hosting? If you want to take part in the internet as a business, information resource, directory, or as a hobbyist wanting to share data, information and knowledge with the many people and communities on the internet, you have to contain this in a central spot on the internet. You have to own a piece of space in cyberspace. Web hosting empowers you and anyone with a computer and internet connection to own a piece of cyberspace. In your space, you can have news, bulletins, documents, data, files (your web site) and your own post office (mail server) to accept mail, all in the context of you or your business. This is your space and to get this space you either have to own a piece of the physical internet with a network connection to the internet backbone and computer(s) operating as server(s) offering access to your files and post office, for people on the internet to view your web site or send and receive email with you. The cost of owning a direct connection to the backbone and a server dedicated to a web site and email is out of reach for the average business and especially general members of the internet. Even running a web site and mail server on your own computer when it is connected to the internet requires a lot of technical ability and knowledge. The internet itself has to be your business for either of these options to be viable. In our modern society, for every person in business or with a career in most industries today, it is imperative to have a place in cyberspace, not just to be competitive but to survive. Web hosting companies were born out of this great need to provide an environment for the masses to own a piece of cyberspace, to offer an environment where people could have their piece of cyberspace on the internet 24/7 without the great cost. Web hosting companies developed a model where they could split up areas on the servers connected to the backbone and ‘rent' this space, cutting the costs across many people sharing the server and backbone connection to the internet. In a web-hosting environment, you are offered a web site to place your files, data, documents, and bulletins for people to access with their web browser and an email server for you to send and receive email messages. The web host will also provide you a means to get an address for people to get to your web site with a web browser and post email to you. To obtain space in a web hosting environment you become a member and agree to terms and conditions of renting the space - just as if you were to rent a house or commercial premises for your business. Once you agree and become a member, you are given an access code, a key, to your piece of cyberspace. This key, in the form of a login and password, allows you to connect to the web hosting server and up-load (transfer to) your web site so it can be accessed on the internet. Your login and password is also used to connect to a mail server to create and administer mailboxes to send and receive email for you, your staff, or family members. Just like when you rent a house or commercial premises for your business, you have so many rooms, bathrooms, and floor space to use. In a web-hosting environment, your area is defined as disk space and network transfer. Disk space is measured in Megabytes (MB) or Gigabytes (GB). Megabyte roughly means 1,024,000 characters and Gigabyte roughly means 1,024 Million characters. Imagine a character as one key on your key board. These amounts determine how many files, documents, or data you can have on your web site. Network Transfer is also measured in Megabytes or gigabytes which determines how much data (how many of your files, documents or data) can be downloaded (transferred to) people accessing your web site. The more people, or the more data each person accesses on your web site the more data is transferred on the network. The more disk space and network transfer you use the greater percentage of the web-hosting environment you are using - therefore the higher the rent. Just as no office building and home is the same, neither is every web-hosting environment. Some offices have stairs, others have lifts, some houses have ensuites, swimming pools, and gardens, - and others do not. Web-hosting environments are much the same, some offer bare structures to do just the basics and others offer an array of features and facilities to help you do just about everything you could ever need or want. Some of the features and facilities likely to be offered are ranges of software to use, components, databases, and server side script processing. The similarity of renting an office or home to renting space in a web-hosting environment is even more similar. With some buildings a gardener and/or a guard is available to look after the gardening or provide security. In a web-hosting environment, you have support people to help you do what you need to do on your web site to make it grow and there are server administrators to protect and secure your web-hosting space. When you rent a building there are key parts needed to work or live in the space, like rooms, offices, kitchens, toilets, and bathrooms. In your web-hosting environment, you will find equally important components that are required to make the space workable. The core components in a web-hosting environment are: Web Server The web server is a relatively simple piece of software that accepts requests over HTTP (Hypertext Transfer Protocol) and delivers HTML pages and Image files. FTP Server FTP is the means of which a web master can transfer files to and from the server. To put your HTML and image files on a server you will generally use FTP to upload (transfer to) your files to the server running the web server. Mail Server The mail server consists of two parts POP (Post Office Protocol) and SMTP (Simple Mail Transfer Protocol). POP is where email is received into your mailbox and SMTP is what is used to send and receive email between mail servers. Database Server If you are using server side scripting on your web server (you use something like Microsoft Internet Information Server) then instead of providing ‘static' data only on web pages you can provide data from a database allowing your users to search and view the data in different and dynamic way. Also, a Database server is used to gather data from visitors to your site; orders, feedback, discussions and the like. Each one of the above components are software programs running on servers in the web-hosting environment. You can interact with each of these with special software programs you use on your computer. The main ones being: Web Browser When viewing the web you use a web browser like Internet Explorer. Many web hosting companies provide a ‘Control Panel' to administer your web host account, which you use with your web browser. Most allow you to configure most aspects of your account using a simple web browser. Web site/page editor Today many web servers allow editing of WebPages over HTTP (hypertext transfer protocol) based on Microsoft FrontPage technology. These special editors allow you to essentially look at your web site as if you were using a web browser and edit the pages directly as you see them using WYSWIG (What you see if what you get) technology. Most web hosting environments support this, and if you are starting out, make sure it is available. One tip: make sure the web host providing this really does understand this technology - it is the main area of which many hacks and security intrusions occur. FTP Client This is a very simple piece of software that allows you to view the server folders and files in your web host account as if they were files and folders on your own computer. You can then drag and drop files between you computer and your web host account. Email Client If you are on the internet you would already be using an email client to send and receive your email. The most common are Outlook Express, Eudora and Web based mail clients like Hotmail. Database Administration Client The most common databases used with web servers are Microsoft SQL Server (available only on Windows) and MySQL (commonly found on Linux and UNIX but also available on Windows). SQL Server comes with it's own administration client where you can view your databases, edit them, backup data and do all the administration functions you need. MySQL has an active online community where there is a range of administration clients available. Choosing a web host is, again, similar to choosing a house to live in or commercial premises to do business. You need to define what it is you require: how much space you need and what features and facilities you need. If you have been reading this article because this is new to you, then it is likely at this stage you only need minimal space and basic facilities. Once you have worked with the basic facilities you will learn more and become aware of greater facilities and features and then you can simple move from one web -hosting environment to another - paying more or paying less. Moving in cyberspace is much easier, faster, and more seamless than physically moving house or commercial premises. Initially you may use the web-hosting environment offered by your ISP (internet Service provider), the company you use to connect to the internet. But remember these companies main business is connecting many thousands of people to the internet - not managing web hosting environments. You will generally find they offer less than basic facilities and minimal space. If you are just starting out with your first web site the first major choice you will be faced with is "Unix" or "Windows". For a person just starting out on the internet, both are equally capable and will offer the facilities you need to have your place in cyberspace. If you have a web designer or technical person to help you, you only need to consider how much space you really need. With this simple idea in mind, when you are just starting out, owning your piece of cyberspace will not cost anymore than $8 per month. Many web-hosting companies will offer what you need for as little as $3 per month (usually paid yearly). If you are going alone and doing it all yourself you may want to consider an account with a web hosting company that offers and prides itself on it's support and customer service, 24/7 support access and the experience, knowledge and skill of it's server administrators. Remember, these are the gardeners and the guards who take care of your environment. Web hosting is very simple and straightforward an once you obtain your space in cyberspace you will never want to let it go and you can easily move it where you want as a turtle carries it's shell on it's back. Always remember you are not stuck in the first web-hoisting environment you choose. Web hosting is your space in cyberspace and it is imperative to have a place in cyberspace in our modern society, just as it is to have an office to do business. Michael Guilfoyle http://www.m6.net/ - 4 web sites, one account, $20 per month - 500MB, 3GB, Unlimited POP, ASP.net, ASP, Unlimited Access DB's - $8 p/mth - Bandwidth from $1.61 per GB, unlimited POP, ASP.Net, Easy upgrade Downgrade Michael Guilfoyle http://www.m6.net/ - 4 web sites, one account, $20 per month - 500MB, 3GB, Unlimited POP, ASP.net, ASP, Unlimited Access DB's - $8 p/mth - Bandwidth from $1.61 per GB, unlimited POP, ASP.Net, Easy upgrade Downgrade More...