New Ventures Reselling Web Hosting Make a Profit

Two-thirds find it 'easy' to cross-sell web hosting to their existing customer base. Half increased average length of service per client as a result of reselling hosting.

Philadelphia, PA (Gawkwire.com) 80 percent of businesses that begin to resell web hosting in addition to their regular products or services earn a profit from the practice within one year, according to research released today by Fasthosts Internet, (http://www.fasthosts.com), a leading reseller web hosting provider. The survey of 793 resellers(1), also found that two-thirds (66 percent) found it 'easy' to cross-sell hosting to their existing customer base, and half (50 percent) have increased their average length of service per client as a result of reselling web solutions.
 
In today's difficult economic climate, the figures lend weight to the concept of reseller web hosting as a low risk and profitable way to develop an enterprise such as an IT or marketing related business. Fasthosts recently launched in the US with an aggressive launch offer, one year free unlimited reseller web hosting, offering an excellent new way to resell own-branded web solutions including web hosting and domain names. Fasthosts' unique philosophy provides resellers unlimited web space and bandwidth enabling them to create their very own packages (including hosting, domains and email solutions) and set their own prices.

Some 70 percent of Fasthosts resellers surveyed would recommend reselling web hosting to other businesses such as theirs. In 2008, the low investment costs involved make reseller web hosting a compelling business proposition. The research found that excluding monthly subscription fees, 61 percent of resellers invested less than $1000 in setting up their own reseller hosting operation. A further 84 percent of those surveyed would recommend Fasthosts as a reseller partner.

Steve Holford, CMO Fasthosts Internet, said, "In recent months, demand for reseller web hosting has been brisk as more IT related SMBs are seeking to diversify and add strings to their bow. By offering web solutions alongside existing services, many businesses find that they can bolster their revenues and protect their client relationships."

The recurring fees model and healthy profit margins involved with web hosting can also be attractive for those under pressure to grow revenue streams. 64 percent of resellers reported that they had increased overall 'revenue per client' as a result of reselling web solutions.

An important characteristic of web hosting is the excellent scalability, allowing one to model a reseller business flexibly. All technicalities and back-end processes are handled by the provider but the reseller retains all customer liaison and marketing themselves. Therefore, unlike many other reseller propositions, a hosting reseller can focus on sales and unifying their new service to a corporate identity or existing offerings.

Holford added, "With the support of a high-quality provider, creating your own web hosting brand can comprise an efficient way to generate revenue. As the web becomes more critical for all sizes and types of business, the web solutions market will enable resellers to capitalize on growth areas such as mobile email, collaboration and ecommerce."

For more information on Fasthosts and reseller web hosting, see the website at http://www.fasthosts.com

Add to: del.icio.us Digg Technorati