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Reseller hosting is a great opportunity for anyone interested in making an online income. While getting set up is simple and low-cost, reselling is a long term investment of work, patience and promotion. With proper preparation and thorough research, it can become a lucrative business over time. The following list outlines the steps necessary to becoming a quality reseller web host.

Have a Plan
As with any venture, a plan should be drawn up with a clear idea of goals before starting out, while bearing in mind that profits will take time. Determine what part of the hosting market the business will target. Starting off small is the best approach, allowing the reselling business to grow organically. Thinking too big and wanting too much, too soon is the main reason many new reseller hosts fail.

Pick a Domain Name
The domain name should reflect the name of the business and be registered prior to choosing a host. A dot com is the first choice, with the option of adding the dot net to boost SEO and lock the brand name. Single word domain names work the best, as they are easy to remember and look more professional.

Choose a Host
Many hosting companies offer reseller plans and it can be difficult to choose one. A good host will offer generous bandwidth and disk space for a reasonable monthly fee, and will also provide a control panel that allows for simple administration and branding. A cPanel host is a good choice for novices because it is easy to learn. Some hosts offer a free license for billing software, which can be a huge time and money saver by providing easy sign-up, keeping clients organized and sending invoices automatically.

Set Up the Website
The company website is the portal through which potential clients first meet the business. It should be simple, easy to navigate and clearly show what the reseller has to offer. There are many quality free hosting templates on the Internet that only require a minimum of editing to customize. If in doubt, a small investment in professional web design can go a long way toward making a good impression and can ensure optimization.

Create Packages
Offering a variety of hosting packages will attract the most clients. It is crucial to offer disk space and bandwidth within reasonable limits that will allow for future growth. A good reseller will never promise more than can be delivered and have hidden limits that are a big surprise later on. Packages also need the flexibility to change to reflect customer needs.

Promote the Business
Promotion is vital to any business and the best way to get the word out is through social media. Setting up Twitter and Facebook accounts will make the reseller appear more approachable as well as professional. It is also an excellent avenue for letting people know about coupons and other specials. Twitter can serve as a lightning fast customer service solution with a personal touch.

Encourage Feedback
A new reseller can learn a lot by listening to clients. Encouraging feedback through an email form or social media will help the business grow and change to meet the needs of its target market. All criticism should be taken as constructive and a way to make things better. This approach will also show clients the reseller cares about their needs and will go the extra mile.

Have Patience
Growing a reseller hosting business takes a lot of patience. It is unlikely the company will turn a profit in the first year and it may only break even in the second one. Success in reselling comes over the long term, as it is not a get rich quick scheme. The company may have to shift its approach and goals a few times before finding the perfect niche and customer base.

Web hosting is a highly competitive market and with so many people getting in the reseller business, it can be difficult to stand out and get noticed. Following the tips above should provide a solid foundation for the novice reseller to build a profitable, well-run company.

Photo by Andrew*

Becoming a reseller host does not require a high level of technical knowledge or a lot of money, but it does come with certain responsibilities. It should not be looked on as a fast way to make money or something that can be set and forgotten about. Reselling is a business that must be built from the ground up. The list below explains several best practices that can ensure success.

Be Realistic

From the start, it is vital to be realistic about goals, packages offered, target market and profit. A reseller business grows slowly and often does not turn a profit in the first year. While it may be tempting to offer customers generous hosting packages in order to get more sign-ups, it is best to stay conservative in order to give the company room to grow. It is also wise to bear in mind that the only constant about web hosting is the fact that it is always changing. A reseller must be flexible and willing to try new business and promotional approaches for maximum results.

Provide Superior Customer Service

It is a common misconception that customer service is a limited event based on a certain problem or situation. Nothing could be further from the truth. Customer service encompasses everything from the layout of the company site to the efficiency of a submission form. A reseller should provide multiple ways for clients to contact the company, such as phone, live chat, ticket system, email and social media. All communication from customers should be answered as fast as possible. Accessibility and a willingness to listen, communicate and solve customer issues in a professional manner is a big part of creating a stellar reputation.

Promote the Business

There are many ways to promote a reseller host and the majority of them require only a small investment of time. A new host can start by asking family, friends and coworkers to sign up for the service and provide honest feedback. If they have a positive experience, they will tell everyone they know and that group will tell others as well. Using social media such as Twitter and Facebook is a great way to introduce the company to the masses and generate some buzz. Twitter works especially well because it can be used as a customer service tool as well as a promotional one. Being approachable and willing to engage goes a long way toward building rapport.

Give Discounts

Everyone loves a deal and hosting clients are no different. Offering specials and discounts as an incentive to sign up is a great way to attract new customers and retain the current ones. Some examples are giving new clients a month free for agreeing to a year of service or giving a percent off when they renew. Once the business is going strong, it may be feasible to offer recurring coupons and specials to everyone. The idea of a discount is to make customers feel important and as if they are receiving royal treatment.

Encourage Feedback

Reseller hosts should ask their clients to provide feedback about the service. Whether positive or negative, feedback will tell the host how well the company is doing and how best to address the aspects that require change. Feedback can be collected by a form on the company site or through social media. A Facebook fan page can be very helpful in this regard, as it will allow clients and company to interact publically and show the reseller in a professional light. Another possibility is to ask clients to write reviews around the web and offer a discount in return. Feedback is what keeps a company honest and it should always be encouraged.

Being a reseller web host requires time, dedication and a willingness to go the extra mile for customers. It is not enough to sign up for a reseller account, slap together some packages and put up a site. Hosting is all about personal service from start to finish. The client is always the most important of the business, and the tips outlined above should be helpful for attracting customers and keeping them over the long term.

Photo by DBarefoot

The most challenging part of starting a reseller hosting business is getting the word out. While family and friends can be helpful, it is more crucial to establish a strong presence on social media. This not only attracts new clients and helps to stay in contact with current ones, it also gives a hosting company a more personal touch. Outlined below are ways a reseller can utilize social media and stand out in the competitive world of hosting.

Facebook
Facebook is by far one of the most useful marketing tools for any business. It has a huge global userbase and many features for websites, such as the popular like button. A reseller can set up a Facebook page that provides information about the company and the hosting plans available while also offering discounts and coupons. The page’s wall can be used as a pre-sales forum, where potential clients can ask questions before signing up. The wall can also serve as an avenue for customer service, giving clients a quick resolution to their technical issues. Those resellers who wish take it a step further can create personal profiles and link them to the page. Facebook is an excellent reputation builder and one of the most powerful ways to build a customer base.

Twitter
Microblogging service Twitter is best known for its 140 character messages, but it also works very well for promoting a business. It differs from Facebook pages in that it emphasizes sharing rather than discussion, so its power lies in using links. A reseller host can set up an automated process where relevant links about the company, its current specials and the hosting industry itself are tweeted on a regular basis at times where they will pull the most traffic. Twitter is also a great way to get the word out about maintenance or downtime issues, as well as general company announcements. Like Facebook, Twitter can also be used as a means to resolve uncomplicated customer problems or complaints. One practice resellers should avoid is the use of automatic direct messages. While this not a violation of the terms of service, it is frowned upon by Twitter users.

LinkedIn
Many reseller hosts may not consider LinkedIn as a way to promote their business, but it can prove helpful by putting the reseller in touch with other industry professionals. This in turn will put the hosting service on the radar and may also attract the attention of other LinkedIn users who may be in need of web hosting, whether for personal or commercial purposes. Most of all, having a profile on LinkedIn will make the person running the company appear more serious and professional.

Google Plus
Google Plus is new on the social media scene, having arrived in July 2011. While it works much like Facebook, it has a much smaller userbase and does not have all the tools that Facebook offers. Its one big advantage is the majority of people using it are from the technical world, so setting up a business page there can bring in a lot of interest and new signups, as well as get the company noticed by the right people. Like Facebook pages, a Google Plus business page can be used for information, announcements and to answer any questions people may have about the service. While it may not have the overall reach that Facebook does, a Google Plus presence is a sure way to create some buzz around a reseller hosting company.

Social media is a powerful way to get a reseller hosting company noticed in a crowded and competitive marketplace, but the best way to stand out from the crowd is to offer a quality hosting experience along with top notch customer service. A great host will always listen and respond to customer needs and fulfill them any way possible. This aspect is what sets exceptional reseller hosts apart from average ones.

Following the social media tips outlined above should help new resellers promote their companies, stay in touch and attract new clients over the long term. All it takes is a small investment of time to get on the fast track to success.

Photo by Neeraj Sharma Web Designer

Reseller hosting offers advantages in different ways, especially to web designers who have an established business with many clients. People who want a professional design for a website are often in need of a quality host. By combining both services, web designers can stay in touch with clients while providing an extra revenue stream for themselves. The list below explains the different ways reseller hosting is beneficial to web designers.

Profit
It may seem obvious, but it is surprising how many web designers do not take advantage of a reseller host. Providing hosting services along with a custom design is an excellent way to set up recurring revenue while staying in contact with clients for possible future design work. A designer will also be in the position to charge a higher fee for the hosting service, as the personal relationship with the customer requires more detailed attention than is available from a standard host. A client will be more inclined to trust the designer with hosting since that person knows every aspect of the website involved. It is a winning situation for both parties.

Communication
A designer who hosts clients is better able to stay in communication with them regarding future design work, technical updates or other issues with the sites. Giving customers coupons to pass on to friends, family and coworkers who may be in need of design services and hosting is a great marketing technique that may cut down on advertising costs. Having design clients on the same server makes it easier for the designer to perform upgrades and other work without the hassle of dealing with a third party host they are not familiar with.

Optional Services
In addition to offering design and web hosting to clients, having a reseller account makes it easier for the designer to create other sites that focus on services such as search engine optimization, content writing or installation of scripts. The designer can run the services themselves or outsource it and collect a referral fee. This is yet another way to build a relationship of trust with customers with the potential to attract more by word of mouth, which can greatly reduce marketing costs.

Extra Resources
Running a web design site can be very resource intensive when all is said and done. Design sites host a great many images and often provide client areas for works in progress. There is also a need for a large number of pages when the designer is selling pre-made templates or themes. Contact forms and information pages must also be taken into account. Being a reseller host can remove a lot of the headaches involved with running a large design site by providing adequate bandwidth and resources, as well as options for branching out onto other domains. This can be convenient if the designer has a personal site or blog that is separate from the business.

Sellability
A reseller hosting company with established clientele is a great business asset that can be very profitable when sold. Every customer that is added to the service increases the company’s value. Most small hosting companies bring in a sales price that is equivalent to 12 months of revenue, but this can be more if the clients are paying higher hosting fees. The bottom line is a solid company with an established customer base will always command a good sales price.

Reputation
Web designers take a lot of pride in their work and must be versatile and creative to stay ahead in their market. Offering hosting to clients as part of a design package or a separate service is a simple way to boost reputation and be a go-to person. This can be attractive to both personal and commercial design customers and may even bring lucrative contracts with long-term revenue possibilities. A designer who invests in a reseller account can only improve their business.

Any well-established web designer who wants make more money while providing a valuable service to clients should look into becoming a reseller. The convenience, versatility and potential long-term income boost is well worth the initial small investment and can only bring more success.

One of the most important aspects of a reseller hosting business is the level of customer service it provides. Responding to client needs and expectations is the cornerstone to building an excellent reputation in the market. Outlined below are five ways to provide the very best service to customers.

Be Accessible
Nothing is more frustrating to a client than an inability to reach the host, especially if there is an emergency. A quality reseller will provide a phone number that will be answered at any time of the day or night. Implementing a ticket system, which comes included with some client management softwares, will efficiently prioritize and keep track of customer issues. Another method of contact that has become popular in recent years is live chat. This can be more practical and cost effective than phone service for new resellers on limited budgets. Twitter is an alternative, real-time option that is effective for quick troubleshooting and announcing planned downtime, such as for maintenance.

Be a Good Listener
When a customer has a problem with the reseller service, they want to be heard. They do not want a canned response, or a link to a knowledge base post that may not completely address the issue at hand. Whether communicating by text or voice, the reseller should let the customer talk without interruption, then clarify anything that requires more information. It can be helpful to write out the problem while the client is talking about it and highlight key points. Never argue with the client, as the focus should be on solving the problem, not winning a fight.

Be a Good Communicator
A good host will always treat a customer with respect, regardless of the manner in which the problem is being presented. It is wise to remember many clients do not have the technical expertise that a host does and minor glitches may be intimidating, especially if there is downtime involved. After the client has explained the issue, the host should repeat everything back to ensure all details were covered and the problem is being understood correctly. The client should then be reassured the issue will be handled with utmost priority. This point is very important when using a ticketing system and the discussion is not occurring in real time.

Be Professional
Letting the customer know resolving the issue at hand is very important to you goes a long way toward building a solid reputation in the reseller business. The client should be thanked for their patronage and asked for feedback on how to make the service better. A broader way to find out how the service is doing is put a poll on the company site and make note of the results. Another benefit of great customer service is clients who receive it will write shining reviews and also tell their friends and family how fantastic the hosting service is. Each of those people will share the information with their own network of coworkers and friends. A good reputation always builds upon itself.

Be Open to Change
An often overlooked aspect of customer service is knowing when the current system is not working. Whether that means changing the way clients contact the company, how tickets are handled or who answers the phone is dependent on the type of feedback received. It might be as simple as redesigning the company site or offering new hosting packages, or as complicated as installing a more efficient billing and ticketing system. Whatever the reason, a good host will know when it is time to make a change to better serve its customer base. A company that listens is a company that stays ahead of the game. This is crucial in a highly competitive reseller hosting market.

Providing quality customer service is more than just solving a client’s momentary technical issue. It is an ongoing process that builds trust and goodwill that can lead to more business. The high failure rate of new resellers can often be attributed to a lack of quality communication between the company and the client. Making stellar customer service a number one priority is part of the foundation for success.

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Have a Wonderful Weekend!

Check out this post on inbound marketing from A Small Orange:

Would you rather be bothered by intrusive and annoying online advertisements or self-select helpful information from companies vying for your attention and patronage?

The answer to the above question in obvious, and businesses everywhere are taking note. In the past (let’s be real, from the beginning of advertising), brands and organizations have sought to grab the attention of the consumer through flashy, in-your-face, and over the top advertisements. This is termed as “Outbound Marketing.” Now, the fundamental functions of the internet are changing the way businesses and advertising agencies reach out to their customers.

Unlike print publications (the main form of mass communication before the turn of the century), the internet is not a one way conversation, but a network of voices that review, comment, upload, download, subscribe, tweet, post, update, and the list goes on. This fundamental change in communication structure has revolutionized the way businesses connect with consumers. Enter: Inbound Marketing.

Unlike “Outbound Marketing,” blasting consumers with ad after annoying ad, Inbound Marketing acts as an agent of conversation. This style of marketing recognizes that it is a voice in a dialogue, and thus being rude and annoying has real consequences. The way Inbound Marketing works is creating useful and user-friendly content that informs and edifies the user who has self-selected this content.

Image from blog.hubspot.com

Inbound marketing is an effective way to grow your business and the loyalty and respect of your customers. Sound like something that could work for you? Check out these great resources for creating Inbound Marketing strategies that produce effective results and give you an edge on your competition.

Copyblogger

These two great blogs from HubSpot:
http://blog.hubspot.com/
http://blog.inboundmarketing.com/

Content Marketing Institute

PR 20/20

And while you’re at it, be sure to check out this great article dealing with how online marketing has evolved since the 1990′s.

Have you been using Inbound Marketing for your organization? How have you fared? Let us know in the comments section!

This infographic, created by MDG Advertising, covers user opinions about the level of privacy that has come to be expected when using social networks.

The figures show that even heavy users of social media are not entirely aware of what information is/isn’t being collected by the networks they use. In fact, the infographic claims that nearly 2/3rds of consumers don’t trust online companies like Facebook, despite consistent use of the platform.

While this infographic may not be the best conversation starter for those looking to persuade others to increase social media engagement, it’s a fascinating starting point for those who may want to learn more about the privacy policies of the social platforms they use.

What are your views? Is privacy important to you? Have you ever found yourself in a social media-related security snafu? We’re curious to hear your opinions, so let us know in the comments section!

Click here to see the full-size image.

This Week’s HostNine Blog Posts:

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To close out, here’s some humor from XKCD:

See you all next week!

While I can’t guarantee that Affiliate Marketing is right for every business out there, I believe there are a ton of companies that can start using affiliate marketing today to bring in more customers.

So how do you get started? Let’s go over the basics:

Affiliate Marketing 101

The Wikipedia definition of Affiliate Marketing is, “an internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s marketing efforts”. In its most basic form, A “Refer a Friend” campaign is essentially affiliate marketing.

To understand affiliate marketing a little further, you must be equipped with the common types of affiliate payments out there; how you can reward your affiliates for bringing in more customers.

CPA: (Cost per Acquisition)
This is usually done as a flat rate. For example: If an affiliate marketer brings in 1 customer, they get paid a flat rate of $25.

CPS: (Cost Per Sale)
Probably the most common, this model relies on a percentage of the sale referred, as the payout to the affiliate. For example, If a customer was referred by an Affiliate Marketer, and that customer paid $25 for the product or service (Let’s say the CPS is 10%), then the Affiliate Marketer would be paid $2.50.

Credits:
Probably the easiest for small businesses, offering your affiliate program to just your customer base and giving them credits or percentage off your services or goods.

How Do I Get Started?
There are so many tools depending on how much you want to invest in Affiliate Marketing. Let’s assume that you just want to get off the ground with some basics. Here is some starting points to get your program setup:

Join a Network
This is by far, the easiest way to jump right in. Just be cautious; some of these networks have high costs to join. I’d check out ShareASale or LinkShare. These networks expose your program to affiliate marketers in a network and allow you to manage it all from one place.

Site themes or WordPress Plugins
If you’re running your business website off of WordPress, there might be an easy way to add an affiliate program by just installing a plugin. Check out these plugins here.

Coupon Codes or Credits
If starting a whole new affiliate marketing channel scares you, Figure out a way you can hand out unique coupon codes to select customers. Ask those customers to share these with potential leads. A simple form field on your site will allow you to see who used the coupon code and who, as a customer, should be credited for their affiliate marketing.

After getting setup with one of the above solutions, you will want to track your affiliate’s progress. This alone will make sure that your Affiliate Marketing channel is showing a consistent activity of bringing in customers.

What Affiliate Marketing strategies have you used to grow your business? Let us know in the comments!