4 Reasons Why New Hosting Resellers Fail (..But You Will Succeed!)

Web hosting is one of the most promising digital businesses that can be started with zero capital and if done in the right way it can offer you great chances of constant growth. The best thing is that while you will enjoy the extended entrepreneurial freedom, the maintenance, infrastructure and support services will be provided by your web host. As a reseller, you are not a commission agent but an independent entrepreneur with a distinct brand identity. All these things have increased the number of the people who join the web hosting reselling business. However, it is equally true that many people who join this industry are compelled to discontinue after some time complaining that they are not able to make enough money. There is nothing wrong with the industry but it is the wrong way of doing the business that prevents the hosting resellers from enhancing their revenue or reputation. Here are a few mistakes made by the new web hosting resellers that prevent them from succeeding. We have also explained the right way of doing the things so that you should not meet the fate of those failed resellers but emerge as a successful entrepreneur:


Mistake#1: Not determining the targeted audience

As a web hosting reseller, you first need to determine your targeted audience. One of the major mistakes made by many new resellers is that they don’t focus on a single targeted audience group but start contacting different potential clients from different industries using different mediums. As a result, they “believe” that they are working hard but in fact, this “hard work” fetches very low returns that are not even sustainable.

How can you do it the right way?

Deciding your target audience depends upon various parameters. However, you should first select the product that you would like to focus on.

• As a rule of thumb, it is better to start pitching the affordable plans like shared hosting plans as they are generally preferred by the start-ups and SMEs the two sectors whose prime concern is cost.

• Unlike the big corporate houses, they are not very demanding or specific in their hosting requirements. Hence, you don’t have to invest many resources or considerable time on support/maintenance issues.

• It can also help you in retaining such clients for long and keeping cordial customer relations.


Mistake#2: Not utilizing content marketing in an ideal manner

One more mistake made by the new web hosting resellers is to neglect the power of content marketing or not using it in the desired manner. Many of them deny the use of content for marketing while the other use content just to follow their competitors rather than understanding the full importance of the same.

How can you do it the right way?

It is cent percent true that valuable content can enhance your chances of selling the web hosting packages to the target audience. However, you need to concentrate on the quality of the content and follow best content marketing exercises.

• While having your company blog certainly offers you SEO benefits, you should make sure to do a proper research before posting blogs.

• These are the 3 major questions to ask yourself before you decide to write or post a blog:

  • Is this blog going to add any value to the readers?

  • What are the keywords I need to use in the blog? Do those keywords align with my sales objectives?

  • How am I going to “market” the content on the web? Do I have a specific strategy (Sharing the published link with relevant FB groups, tweeting about the same, using the link in relevant Quora Answers?)

Mistake#3: Not honing technical knowledge

Many hosting resellers think that they are “resellers” and thus they don’t need to preoccupy them with the advanced knowledge of web hosting or domain names. It is completely true you don’t need to have a thorough technical knowledge to become a hosting reseller but technical knowledge does help in building your authority and enjoying a cutting edge.

How can you do it the right way?

You should seriously try to widen your knowledge base if you want to enjoy a cutting edge over your competitors. It can also help you in enjoying a long-lasting success by building a loyal audience. The Internet has enlightened many clients. Today, clients love to discuss technical features in length like memory, disk space, uptime, agency etc. before they decide to purchase a hosting plan. In fact, the more serious clients would first check for the authoritative figures on the internet by visiting various relevant platforms like web hosting forums, web hosting magazines etc. and then contact the ones that seem to hold a decent technical knowledge.


• Once you gain a good knowledge about the web hosting industry, you can start your own blog and write informative posts about less touched topics revolving around the web hosting industry.

• During the initial period, you may also need to take help from experts in order to make sure that you should be writing the content that’s really informative

• Some of the topics that are most read or loved by potential web hosting clients are

  • Troubleshooting: Write easy to understand, jargon-free instructions aimed at resolving technical issues.

  • How-tos: Write step by step properly formatted guides on how to do a specific task related to web hosting (For example how to activate word press theme using your cPanel).

  • Business Tips: Share valuable business tips on how to enhance your website rewards and reputation by scaling/managing different aspects of your hosting package.


Mistake#4: Not utilizing direct selling through digital channels

While it is true that content marketing can help you a great way in digital marketing efforts, you cannot deny the efficiency of direct online marketing with the main aim to contact the potential client who is presently looking for the hosting service that you are selling. Not too many hosting resellers use online pitching in the right way and that limits the returns of their digital efforts.

How can you do it the right way?

Apart from facebook groups, forums are the best places to find your target clients who are looking for the products that you are selling. Google for the best web hosting forums and magazines available online and register yourself as a member.

• Develop a habit of reading at least one informative and related article from online web hosting magazine with actionable tips and real-life examples. It will help you gain a sharp knowledge about web hosting field.

• Most of such forums have separate sections for beginners. If you are a beginner you can join that section and start interacting with more experienced members to further in your knowledge about the web hosting industry, meanwhile start making your network on the forum.

• Once you think that you have gained a decent knowledge, then you can start browsing the marketplace for clients who are looking to buy new hosting plans or changing their web hosting supplier.

• You can contact them directly and confidently to pitch your services. Write a professional and effective sales pitch to ensure that it should leave the right impact.