Why did your Reseller hosting business fail ?

The internet is filled with the stories of successful resellers who are selling web hosting products to a large number of people and earning a decent recurring income. While it is true, there is another less discussed aspect too that is seldom discussed- A large number of hosting resellers fail miserably! However, in many cases the resellers fail due to their own mistakes. If your reseller hosting business also failed then in this article we can review the reasons. The article is equally important for you are going to start your new reseller hosting business and looking for some mistakes to be avoided:

Don’t sell plans at Low cost initially

One of the major mistakes done by the failed hosting reseller is to sell their plans at lower rates in order to make a quick market penetration and acquire maximum clients. Though it does help in enhancing the sales volume in the initial phase, you need to be considerate about the future implications of the same. Keeping low prices can reduce your profit margins and with a continuous, with time you will discover that it is difficult to retain the same prices. It can prompt you to increase the prices. Undoubtedly major portion of your initial client base would have purchased your services because of low prices and can look for another host when you increase your prices in the future.

Increase in rent, salary hikes, change in tax rates, maintenance, yearly bonus and other similar factors can considerably add to your operational costs over a period of time that will significantly reduce your profit margin. So, you need to employ a futuristic approach wile calculating your profit margin and deciding on reducing the costs.dw

A better approach would be to offer the limited period discounts and keep on augmenting the costs steadily. It will prompt the interested prospects to buy your services before the discount period is over.

Reputation is not enough

There are a number of web hosts with which you can start your journey as a hosting reseller. Most of the hosting resellers generally prefer to choose the reputed web hosts preferably with global presence and a wide experience. This is a good practice as one cannot risk his reseller business by joining hands with the newly started web hosts having limited resources. However, there are 2 major mistakes that could be made by the resellers at this point.

Most of the resellers focus on the brand while selecting the right web host. Though brand plays a vital role in the selection, you also need to consider that customer satisfaction and reliability are 2 major prerequisites to attain a long term success.

Apart from the brand you also need to pay proper attention to the reviews and feedback the company receives. Don’t just rely on the company’s website for the reviews but check the diverse platforms like social media, review sites and other unbiased sources.

Reliable Support

Support is the major aspect of any web hosting business. If your web host provides excellent resources at affordable prices but has a pathetic support system then you can most possibly encounter multiple issues in the future. The irony is that while you are fully aware of the plans, features and prices prior to joining any web host as a resell it takes some time before you can be sure about their support quality. Many of the resellers fail because of the low quality f support offered by their web hosts.

First thing to consider is the number and nature of communication platforms on which your web host offers the support. Availability on multiple communication platforms ensures that the clients can reach your web host using the medium they are most comfortable with. Depending upon different situations and locations, the clients prefer to use different medium of communication to register their complaints. So they should have comfortable choice to sleet the medium of communication that aligns with their requirements.

In order to gain the first level experience of the quality of support offer by the web host company, you can check the same by designing your own strategy that involves using different mediums to contact the support team, asking different types of questions (technical, business-related etc.) and evaluating the response you get. You can contact the support team multiple times with the gap of a few days to check the consistency of the quality. After ties exercise answer these 3 questions:

Were the client executives courteous and clear in their answers?

Did they really possess the required level of technical knowledge?

.......and most importantly- Were they able to satisfy you?

Based on the answer of these three questions you can make the final decision Needless to say, all the three answers should be positive. Any single negative answer should be a valid reason to look for another web host.