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Reseller web hosting is a business model that allows you to buy web hosting resources in bulk quantities. These resources are then repackaged to form customized reseller hosting plans and resold to new clients.
The business model offers a chance to earn a passive income by selling reseller hosting plans at a maximized profitable amount. To earn a substantial amount of profit, you need to price your plans correctly. Here, we discuss how you can price your plans as a reseller web hosting company.
Understanding Factors Affecting Cost of Reseller Hosting Plans
1. Server
Multiple types of server solutions are available in the market, including shared, VPS, dedicated and cloud. The cost of the solution will differ based on the type of server you choose. For instance, dedicated server hosting is more expensive than other types of servers.
2. Resources
The type and capacity of resources you use to create your reseller hosting plans heavily influence the price.
The SSD storage solution is more expensive than the HDD. Higher bandwidth, processing cores, and memory capacities are more expensive than those of lesser capacities. More resources generally mean higher costs.
3. Tech Support
Customer service is an influencing factor in reseller web hosting. This is because it is a technical field where clients might need help very often. Having a robust tech support provision includes 24/7 availability, multiple communication channels, effective solutions, and faster response times.
4. Operational Costs
As a Windows or Linux reseller hosting provider, you carry out multiple operations, such as marketing, billing, website maintenance, payment gateway charges, and more. As an entrepreneur, you must consider these expenses when pricing your reseller hosting plans.
Factors to Consider When Pricing Your Reseller Hosting Plans
● Competitor’s Range
Conduct thorough research pertaining to your competitors and their pricing methods and ranges. Applying charges that are too high or too low compared to your competitors will repel prospective customers due to the lack of credibility and market sensitivity.
● Customer Base
As an entrepreneur, you understand your client base and who you are catering to. Understand the diversity of your clients, who you cater to, how flexible you are, and what your target is.
Create segments for clients, like budget-conscious, medium-range, and premium plans. This bifurcation will help you customize and tailor reseller hosting plans for your clients.
● Package Configuration
When you buy reseller hosting, you bundle and repackage your plans. Some servers are configured, while others are not. This difference allows you to cater to different customers while still maximizing profits.
● Value-Based Pricing
Instead of considering costs, you can just think about the value you provide to your customers. If you offer superior uptime, security, tech support, additional features, and complementary services, you can justify higher reseller hosting plan prices.
● Scalability
Your plan can also be based on the amount of scalability you will allow. As a reseller hosting provider, you can enable unmetered bandwidth, unlimited storage, and high processing cores. These plans will be more expensive than the ones with limited resource allocation.
Summing it Up!
As a reseller hosting provider, you earn significant profits using the right pricing strategies. Reseller web hosting is inherently very lucrative, allowing you the freedom to price your plans and solutions.
By considering the abovementioned factors and understanding the factors that influence the plan cost, you can create an effective pricing model that benefits both you and your clients. With the right approach, this passive income project can become mainstream daytime work and a profitable venture.