The web hosting market is comprised of several leagues of players. You have the data centers and the huge suppliers of bandwidth and hosting space. Then you have the actual hosting companies, that run sets of servers in their server racks and sell it to individuals or companies. And finally, you have the resellers, smaller hosting providers that have their accounts based off an actual host.
Before you get into this market, you must realize just how crowded it is. The fact that anyone can put in as little as $5 for a reseller account and start their own hosting scheme means that many people are actually doing that. The market is crowded, and many say it’s oversaturated even.
You may think it’s easy to join the hosting game, but you will soon find out that unless you come up with some new marketing ploys and ideas, you may not be able to find customers, or to retain them. For every person posting on a webmasters forum that they are looking for hosting, there are 10 posting back and offering their service. What’s more, competition means that prices go down, and your profit margin decreases… We’re not trying to deter you from becoming a web hosting reseller. On the contrary, this blog is here to help you with your efforts. All we ask is that you be realistic. This is hard work, and you may have to work for months on to acquire a solid base of clients before you get to see the money rolling in.
We’ll talk tomorrow about just how much money can be rolled in from this venture. In theory, it can be quite a lot, but just remember that not everyone will get a share of the hosting budget cake - it takes work to generate revenue.