The mistakes you need to avoid when running a reseller company relate to the clients. That’s because, to turn a profit, a reseller company completely depends on its customer base. Essentially, as a reseller company, you will pay a monthly fee to a web hosting provider. Subsequently, you will sell web hosting to your customers. It’s important to avoid the following mistakes so that your reseller company proves successful.
Choosing a poor-quality hosting provider
Make sure that you use a web hosting provider with a dedicated reseller hosting service, such as GreenGeeks.com. Doing so will help you stay marketable because you can ensure quality. Selling points for a dedicated hosting service include increased speed, bandwidth, and scalability. It’s necessary to choose a reputable service provider because that will help you build a customer base.
Once you’ve built a customer base, it’s important to maintain it. If you’re unable to provide high-quality service because your host provider is unreliable, your customers will turn to your competitors. That’s why it’s necessary to be discerning when choosing your web hosting provider.
Perhaps, utilize a prospective web hosting provider’s chat line to see if customer service responds promptly. Most hosting service providers also offer a 30-day free trial. It’s in your best interest to search thoroughly, in order to make a sound decision on which web hosting to use.
Not marketing your product well
Without clients, your profit margin will remain low. If you are unable to sell your hosting, it’s likely due to a poor marketing strategy. You’ll want to focus on the strengths of your company, in order to appeal to customers. Moreover, it’s helpful to customize plans to suit individual customers. That’s why dedicated hosting is beneficial. It’s scalable. If your customer needs more storage space, you can deliver.
Aside from reaching out to consumers directly, you’ll want to effectively market your product online. Most hosting companies offer a white-label service. That means you can utilize your own brand. If you have a strong online presence, it will likely be easier to add customers and earn a passive income. That said, you’ll also need to respond to customer reviews and interact with web users.
Not Having A Budget or Plan
Contrary to what some YouTubers would lead you to believe, reselling will probably not function as passive revenue initially. You’ll invest money before you make money, and the success of your business depends on whether you can bring in enough clients to break even.
Some people would argue that you should not spend more than the bare minimum to start, particularly in choosing a web hosting service. However, it’s worth noting that high-quality service will keep your business in demand. The reseller hosting business is competitive. People can bypass your service and go straight for the main web hosting providers or other reseller hosting companies. That’s why a business strategy should include targeting a specific market.
While deciding on a web hosting service, it’s paramount to know which features you would be able to offer prospective clients. If you go with the cheapest option to start, you may not have the features clients are looking to use. Not anticipating the needs of a specific client base would prove detrimental to your reseller company.
Not responding to customers
Even though you are not responsible for the hardware maintenance, it’s not a bad idea to show that you’re responsive and willing to act as a liaison. If your client needs help troubleshooting and can’t get ahold of someone, it will reflect badly on your business. Therefore, it’s right to set up contact information and check in regularly.
Neglecting your website
As a reseller hosting company, you will want to make sure that your website looks professional. It should also be user-friendly. It’s a good idea to have a place on your website for your clients to look up answers to troubleshooting questions. That will help your clients trust that you consider their needs.
Part of setting up your reseller company may include outsourcing. Maybe you need someone to help design your website or help you market your company to business owners. Maybe you will want to work with design companies that will refer customers to you. In any case, you need the expertise to manage your website. If you have that expertise already, you may still want to consider that you’ll need to invest your time.