Risks Involved in Reseller Hosting Business and How to Overcome Them
on 16/05/2020

A Reseller Hosting business is a cost-efficient and simple way of entering the web hosting industry. In recent years, with the growth of social media users, most businesses have started working on improving their online presence with a website at the centre of the plan. And every website needs a good host. This has created a huge demand in the market for customized hosting plans that cater to the specific needs of the site. As a reseller, you can create web hosting plans that are tailored to meet the requirements of your clients. Further, with most of the technical part being handled by the parent hosting company, you can focus on keeping your clients satisfied with your services and grow your business. However, the Reseller Hosting business comes with certain risks and disadvantages. In this article, we will be talking about those risks and how you can overcome them.

Risks of the Reseller Hosting Business & how to overcome them

Here is a quick list:

  1. Dependency on the Parent Hosting Company

Your Reseller Hosting business will succeed only if the parent hosting company provides uninterrupted acnd good hosting services. You buy a hosting plan from the company, create smaller packages, and sell them to your clients. Hence, if the parent company is facing regular technical issues, then your clients will suffer too.

What should you do?

Ensure that you research well before choosing the company that you plan to buy a Reseller Hosting Plan from. Look for uptimes, security, and reliability of the services offered.

  1. Changing the Parent Company Can Be Costly

If your parent hosting company is shutting down or if the quality of its services has dropped drastically and you want to change the provider, you must remember that it will affect your clients. Some might even decide to leave you and buy hosting services from another provider/reseller. Web hosting is a long-term service, and there can always be reasons for you to move from one parent company to another. However, you must remember that this comes at a cost.

What can you do?

This is an unavoidable situation. However, if you are technically proficient and willing to spend more upfront, then you can opt for your own VPS or Dedicated Server instead of buying a Reseller Hosting plan. Remember, it will be significantly costlier.

  1. Client Support during uncertain times

When the host faces a technical issue, it informs all its clients (including resellers about the same). Once you know that there is a problem, you need to inform the same to your clients as well. However, if the parent company tells you that the problem will be rectified in two hours, but it doesn’t, then you will have to pacify your clients without any concrete timelines to commit. This can be frustrating, and many resellers lose important clients because they cannot handle this frustration.

What should you do?

Understand that Reseller Hosting or any other reseller business is based on buying a product from a company and selling it to clients as if it was your product. So, you need to take responsibility for the product not working well. Hence, it is critical to choose the parent company with care before you start your Reseller Hosting business.

Summing Up

We hope that this article provided you with an insight into the risks and disadvantages of a Reseller Hosting business along with ways to overcome them. If you plan it right, then Reseller Hosting can be a highly profitable business. Good Luck!