Cloud Reseller Hosting: 8 Strategies to Maximize Profits as a Reseller

Cloud reseller hosting gives you the opportunity to establish a profitable business around web hosting with little investment.

But if you want to start a web hosting company from scratch, it will require heavy investments and high technical expertise.

When you become a reseller, you don’t have to deal with either of those challenges. All you need to do is join a reseller program and redistribute hosting services to your customers.

Now, if you are thinking about starting a reseller hosting business and maximizing profits, read on.

This Article Explains:

• What is cloud reseller hosting?
• Top strategies to maximize profits as a reseller
• Benefits of becoming a reseller
• How to become a reseller

What Is Cloud Reseller Hosting?

Reseller hosting is a program or service that enables you to provide web hosting services to your customers and gain profits. Similarly, cloud reseller hosting is a type of reseller hosting where you resell hosting services on cloud infrastructure, offering more scalability and flexibility.

When you become a reseller, it means that you have purchased hosting capabilities like bulk resources from a web hosting provider (such as AccuWeb.cloud) and now are “reselling” the resources to your customers.

This way, you can build an income stream from this business model without buying or managing servers on your own, just redistributing resources while the original hosting provider takes care of the servers and resources.

This Business Model Is Excellent For

• Digital agencies
• Web development companies
• Web designers
• Freelancers
• Entrepreneurs

And anyone who wants to build a lucrative online business. Apart from hosting services, you can provide website development and design services for more income.

Top Strategies to Maximize Reseller Hosting Profits

So, if you decide to become a reseller, here are the top strategies you can implement to maximize your profits:

Understanding Your Market

The hosting industry is buzzing with competition. If you want to stand out in the market, your offerings must be unique and customer-oriented.

You may narrow your offerings down to a specialized niche where competition is relatively lower and start offering benefits and features that your direct competitors don’t.

This requires you to deeply understand your market by researching and analyzing your competitors and their offerings, pricing models, etc., your target audience and their needs, trends in your industry, technology in demand, and so on.

This will help you detect where competitors lack and find opportunities where your brand can shine brighter.

To choose a suitable niche, you may study the market and evaluate your strengths and resources. You can go for:

• Industry-specific niches like cloud reseller hosting services for sportswear brands
• Technology-specific niches like Magento-based online stores
• Customer-specific niches like offering managed cloud reseller hosting services to busy founders

Understanding market dynamics will help you formulate effective strategies for your entire reseller hosting business.

Choose the Right Cloud Reseller Hosting Provider

Once you have a thorough understanding of the market, customers, and competitors, it’s time to choose a reliable cloud reseller hosting provider like AccuWeb.Cloud.

Start researching online about popular hosting providers near your location offering cloud reseller hosting options. Set aside a budget range for this service to avoid overspending.

You can read online reviews about customers’ opinions and experiences with the hosting provider or get help from friends or colleagues.

Prepare a list of potential hosting providers and compare their offerings. Consider aspects like:

• Hosting type: If you don’t have a technical staff to take care of technicalities, you can go for managed cloud reseller hosting. It will provide you with all the capabilities like setups, management, etc. so that you don’t have to do it yourself.
• Features: Assess your feature needs based on your business like expected traffic and suitable hosting type, scalability needs, performance features like the latest hardware and software, bandwidth, storage support, controls, and more.
• Price: Compare providers and choose a hosting provider with the best blend of features and affordable pricing.
• Customer support: Look for a hosting provider with reliable, 24×7 support. Try contacting them to assess their customer-friendliness, factual accuracy, and promptness in resolving queries.

If a cloud reseller hosting provider checks all or most of the boxes, go for it.

Add Value to Your Offerings

Apart from all that you receive from your cloud reseller hosting company, go the extra mile to make your offerings more appealing and useful for your customers. If they see value in your offerings, they will happily pay for it.

By creating a unique selling point (USP) for your business, you can stand out from the crowd and beat the competition.

There are different ways to go about it:

• Innovate: If you know your audience well, you may lead innovative efforts to create a new feature that no one else has created in your industry. It must benefit your customers and if you succeed at it, it will help in brand positioning and contribute to more conversions and investments.
• Poll/review: Organize a poll on your social media handles or newsletter asking your target audience what additions they like to see in your offerings. You can also take reviews from your existing customers regarding this. Analyze the data you receive and add features that seem feasible.
• Customization: Personalization and customization are two important pillars in the modern business world. Offering services and features tailored to the needs of your customers is a great way to seal the deal and keep a high customer inflow.
• For example, you can offer a custom plan and customize your hosting packages for companies with unique requirements and charge accordingly.
• Bundle services: People love combos and discounts. You can intelligently bundle your services and offer some discounts to attract more customers.
• For example, you can bundle free SSL certificates and 1-year free domain in a plan to boost appeal.

Price Your Offerings Right

Having an effective pricing model for your cloud reseller hosting business is crucial. Your services must have the right combination of competitiveness and profitability. Try not to overprice or underprice your services. The right way to do it is by calculating all the costs and deciding a sensible profit margin.

Calculate cloud reseller hosting cost, software licenses, hardware, employees, and other business expenses. In addition, consider the maintenance costs, additional offerings, and support.

• Research market pricing: Check the pricing structure of your competitors to find competitive pricing. It will prevent you from overpricing or underpricing your services.
• Pricing Type: You may offer monthly subscriptions for services, which is most common. Or, you can go yearly. Design pricing tiers intelligently for essential features and advanced ones. It must cater to businesses of different sizes and industries.
  For example, you may include basic features in the basic plan while advanced features in the higher plans.
• Offers and discounts: Provide discounts and offers on different occasions and seasons to attract more customers.
• Review and modify: Revisit your pricing strategies periodically and adjust them according to new features and market trends.

Read more: 9 ways to optimize cloud hosting expenses for your business.

Implement Effective Marketing Strategies

With competition everywhere, marketing your services is vital. Also, basic marketing doesn’t cut it anymore. You need an effective marketing strategy to attract more leads and convert them into your customers. Modern marketing comprises both print and digital marketing.

Consider the following while creating a marketing strategy for your business:

• Digital marketing: It helps enhance your online presence and boost ROI with content marketing, PPC ads, Facebook ads, Instagram ads, YouTube videos, email newsletters, SEO, affiliate programs, and more.
• Content marketing: You may have heard this popular phrase – “content is king” for all the good reasons. Content marketing offers plenty of advantages for your brand such as better awareness, customer engagement rates, leads, and conversions. The best thing is it costs way lower than traditional or print advertising.
• You can hire content writers in-house or freelance for SEO articles, how-to guides, social media posts, white papers, video scripts, and more. Start a blog, create a YouTube channel, and write social media posts to get started with content marketing.
• Building authority: A blog on your site is fine to get the media coverage but it’s not enough to build your authority.
• Connect with other sites and companies in and across industries and participate in genuine link-building. Find collaboration opportunities and negotiate with blog owners and agencies for deals that seem beneficial for both parties. It will help you improve your site authority and search engine rankings.

Provide Enhanced Customer Experience

Customers drive your business, so it’s essential to keep them happy. One bad review can affect your business in many ways.

When your customers take a hosting service from you, they expect swift, eligible support from you. Technical difficulties or other queries can come at any time, and you must be ready to respond to them.

Here’s how to navigate through this:

• Support team: Set up a dedicated support team to manage client requests and technical problems. They must be available 24/7 with a high service-level guarantee to serve your customers well.
• Ensure each member of your support team is knowledgeable, skilled, and customer-friendly to understand their issues and provide prompt, accurate solutions.
• Create FAQs and knowledge base: Let your customers help themselves with common issues by creating valuable articles and how-to guides in your knowledge base and FAQ section. It will save them as well as your team time gouging back and forth even for common issues.
• Multi-channel support: Give your customers more ways to communicate with you. Offer live chat, phone calls, and ticket support to help customers when they need it. You might include premium support in the higher plans to cater to highly important issues first.
• Seek feedback: Take feedback from your customers periodically to find your weak points and improve on them.

Monitor and Improve Performance

Similar to improving your customer support efforts, you must periodically review what your customers think about your services.

For this, set up key performance indicators (KPIs) like monthly sales, customer acquisition cost, engagement rates, churn rate, customer retention, etc.

Create a report and discuss this with your team to improve areas where you are lacking and prepare better strategies. You can use analytics tools to collect audience behavior, market trends, etc., and tailor your services accordingly.

Whether it’s about improving your service performance or upskilling your support team, make data-driven decisions. This will help you enhance your services, support, and overall organizational performance.

Add More Revenue Streams

Apart from offering reseller hosting services to your customers, you can add more revenue streams to maximize your profits. You can offer related services like website development and design, SSL certificates, digital marketing, etc.

Your customer may need these services to improve their website, online reach, and lead generation. These services will also support their growth, adding value to their business.

At the same time, you will build more revenue streams and increase your revenue by a significant margin.

Benefits of Cloud Reseller Hosting

If you want to start a business in the web hosting domain, becoming a reseller is a great option instead of starting a brand new web hosting company. The latter requires significant investment and technical expertise.

Here are the benefits of becoming a reseller:

• Low investment: Reselling cloud hosting requires minimal investment to run your operations. You don’t have to set up or maintain any server infrastructure or be involved in the complex technicalities of these services.
• You just need to join a reseller program by a reputed hosting company and redistribute their resources to your customers. The ROI is higher without hassles.
• Leveraging reputation: If you choose to be a reseller (without white-labeling), you can leverage the already established reputation of the web hosting company and the trust people have in the company. This will get you started quickly without having to put effort into building your brand.
• No maintenance: When you become a reseller, you don’t have to invest your time and resources in maintenance and technical support. The web hosting provider will take care of managing the servers, software updates, infrastructure, compliance, and so on. Thus, you can dedicate your time to serving the customers better.

How to Become a Reseller

To become a reseller, you don’t necessarily need technical expertise or advanced skills. However, seeking a good understanding of the internet, technologies, domains, web hosting, cloud computing, etc. is desirable. It will help you navigate through your business with ease and less confusion, guide your customers, and serve them better.

Next, you can join an excellent reseller program with a reliable web hosting provider like AccuWeb.Cloud. We will help you get started and running quickly with our reseller program that focuses on your business growth while empowering your customers. Here are the features and benefits of becoming a provider with us:

• Exclusive pricing: Get discounted pricing to earn more with our reseller program
• White labeling: You will get the option to sell cloud services and products using your brand, logo, and pricing.
• Resell all services: You can feature and sell all our hosting services on your site without or without your brand identity.
• Expert support: Access 24/7 support from our experts to solve technical issues.

Become a Provider today!

Conclusion

Cloud reseller hosting is a lucrative business model for digital agencies, web developers, and entrepreneurs. It will help you build a brand around a demanding domain with little investment and gain more profits.

To maximize your profits as a reseller, choose a reputed hosting provider, set pricing right, do effective marketing, and offer additional services, amongst others.

Become a reseller now!