Reseller Hosting is an excellent opportunity to launch a business that offers web hosting services without having to worry about the cost or expertise required to run and manage hosting infrastructure.
As a Hosting Reseller, you purchase a Windows or cPanel Reseller Hosting (Linux Reseller Hosting) plan, create customized packages and sell them to your clients. While you must define a target market and offer services that are tailored to them, it is equally important to ensure that the packages are priced right to ensure you earn a decent profit in the business. In this article, we will offer some tips to help you charge the hosting packages optimally.
As a Hosting Reseller, fixing the cost of the hosting packages for clients can be difficult. Getting this aspect wrong can result in either attracting the wrong clients or not being able to source good business.
Here are some pointers to help you calculate the price of the hosting packages created by you:
How Much Should You Charge?
Here are some tips to help you price your hosting packages right:
- Define a target market segment and create hosting packages that are customized to websites from the segment. This is an important first step since it helps create a structured approach to establishing a web hosting business.
- Consider these aspects of the package to create a pricing plan for your packages:
- Disk space requirement – based on the size of the website
- Bandwidth needed – based on peak traffic congestion
- Number of email accounts required
- Control panel options
- Extra support and maintenance. This can include checking and updating the system, scheduling backups, etc.
- Analyze the hosting providers that are already catering to the market segment. Go through their packages and pricing plans and ensure that your pricing is competitive. Remember, people will shift the website to you only if they can get better features and services at a nominal rate.
- Avoid the temptation of becoming the Reseller Hosting provider that offers the cheapest hosting plans. While this might result in large volumes of business, sustainability might be a challenge. Instead, look to add value to your clients and explain the reason behind slightly higher charges. Focus on quality customer service and optimal site performance and charge accordingly.
Talking about the pricing of a hosting plan, it is important to understand that most site owners get the balance between resources and pricing wrong the first few times and have to alter it. However, with time, it becomes easier to spot trends and patterns that allow businesses offering Reseller Hosting services to increase or decrease rates as needed.
Summing Up
We know that the website hosting services landscape is competitive with hundreds of new resellers entering the market every month. Hence, it is important to choose a target market carefully and price the packages based on the existing price of hosting plans offered by other resellers or hosting companies. The pointers mentioned above can help you get started. Good Luck!