What Is Web Hosting?

Written by Sean Felker

What Is Web Hosting? by Sean Felker

What is web hosting?

The best way to explain this is by comparing it to a real-life (brick & mortar) situation. Picture a web hosting company asrepparttar owner of a shopping mall. The shopping mall owner invested a lot of money on hiring architects, constructors, engineers, etc. to build it. Now allrepparttar 134340 stores on it are empty andrepparttar 134341 owner is going to rent them to smaller businesses that can't afford (or who simply don't want) their own building.

As a small business owner, you can rent this store space on a per-month basis. But remember it is empty. So it will be your responsibility to decorate your store, fill it up with your own products, furniture & displays and to advertise your store torepparttar 134342 world in order to get new customers.

Reseller Hosting Explained

Written by Ashish Jain

Reseller Defined:

The term Reseller according torepparttar dictionary means to sell again i.e. to sell a product or service torepparttar 134339 public or to an end user, especially as an authorized dealer, while making sure that you make a profit onrepparttar 134340 sale.

Reseller Hosting

Reseller hosting is no different either, a reseller buys a Web hosting package from a hosting company and tries to sell it independently. The profit forrepparttar 134341 reseller lies in eitherrepparttar 134342 discount or inrepparttar 134343 commission s/he gets from selling an account.

For example: The reseller might purchase a package whose features are valued at $100 for $90. So,repparttar 134344 reseller stands to make a $10 profit on sellingrepparttar 134345 package to customers. Normally asrepparttar 134346 customers increase, so doesrepparttar 134347 profit margin forrepparttar 134348 reseller.

Or, you can get some money by earning commissions from a hosting company. This happens when you refer potential customers torepparttar 134349 hosting company. Ifrepparttar 134350 customer signs up withrepparttar 134351 company then you earn a small recurring commission untilrepparttar 134352 customer usesrepparttar 134353 services. Most web hosting companies try to outsource their services to resellers as it helps them to extend their business reach withoutrepparttar 134354 cost of marketing and sales and also helps them to concentrate onrepparttar 134355 business side of things.

What can be resold

As a reseller you can decide what kinds of services you can sell. You can provide shared, dedicated or co-location web hosting or merchant accounts, store fronts etc.

If you go with hosting then it might be useful to offer some other hosting related services like domain names, search engines etc.

Of course, if you have problems selling these value added services inrepparttar 134356 beginning then you can sell them later.

The cost and resources involved

The cost of becoming a reseller andrepparttar 134357 equipment and people required in order to be successful depends on many factors.

If you just plan to earn commission by referring people torepparttar 134358 hosting company by usingrepparttar 134359 Internet, then you do not have to put up a lot of money, all you need is an Internet ready PC and an Internet connection.

For a small start-up not a lot of money and resources are required. You can purchase a good reseller package from a hosting company by paying them some money upfront. All that is needed is a decent computer that can managerepparttar 134360 accounts of customers and a good Internet connection.

It is advisable to start small if you are very new torepparttar 134361 concept of web hosting and reselling. Then you can expand as you go on and start getting more and more customers in which case offering domain registration is also a very good way to make profits.

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