how to start reseller web hosting business

Reseller Web hosting business is a perfect, profitable way to earn residual income in Nigeria. It is the easiest and cheapest way to start your own web hosting company and reap the many profits without all the techie headache that follows having such company. With the right marketing strategies, this business is very lucrative. This article will take you through what you need and steps to starting a reseller web hosting business in Nigeria.

What is Reseller Web Hosting?

Reseller hosting is a form of web hosting where, basically, you buy bandwidth and hard drive space from any reputable web hosting company you choose, and then you allocate them to third parties for profit.

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Think of reseller web hosting business as data reselling business. Someone buys 10GB of data  at N10,000 from MTN, for example, then he resells the data to 10 different users at, say, N1,200/1GB each making a total of N12,000. In the end he makes a total of N2,000 in profits for every 10GB of data purchased/sold. This is precisely how reseller web hosting business works. The benefits are enormous while the risks are very few.

Benefits of Starting a Reseller Web hosting Business:

  • Means of Passive Income: A business that generates passive income continues to make profits after the initial set up even while you are away or asleep. Your clients continue to pay a monthly fee to use your services. Reseller web hosting business is a good source of passive income.
  • Provides ease of payment for Nigerians: Many Nigerians find it difficult to pay for web hosting or other web services using their Naira debit cards. Reseller web hosting makes it easier for them to subscribe to a top-notch web hosting company like Hostgator while they pay for their services in Naira through the reseller.
  • Easy to Start and Maintain: As a reseller, you don’t need to bother yourself with the process of setting up and maintenance of servers, data center and other technical details for maintaining a web host. Your main host takes care of all those details. All you need do is to get clients to subscribe to your hosting plans.
  • Opportunity to leverage other business areas: A reseller business is very compatible with other services such as domain name registration, website design, website development, gaming forums, and blogging. You position yourself perfectly to benefit from offering these other services as well. The profits are residual and massive.
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Things You Need To Start a Reseller Web Hosting Business

  • A Website: You need a website where your clients can subscribe to your hosting services. The website should have good graphic designs (because people are moved by what they see), contain the details of your various hosting plans and the cost of each plan, and a payment processor for clients to make payment.
  • A Good Hosting Company: You need to find a good hosting company that offers the web hosting reseller services. Some factors you need to check before choosing a web hosting company; first you need to ensure that the company has it own data center, a good customer support, next to no downtime, and a good control panel. Here is an article that explains how you go about choosing a good web hosting company. I recommend you use Hostgator; their support is amazing.
  • An Office Space: In developed countries, people easily start and run their tech start-ups from their garage. The opposite is the case in Nigeria. If you are serious about running a web host resell business in Nigeria, then you need to get a physical office address. When you are starting out, you can pair with a friend to share an office space. You can move out to your own personal office when you start making profits.
  • A Corporate Bank Account: It will look funny and present you as not serious if you issue your personal account details for clients to make payments for hosting plans. You need to get a corporate bank account (preferably in the name of your business). To get a corporate account in Nigeria, you need to register your business as a corporate entity.
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Steps To Setting Up a Reseller Web Hosting Business In Nigeria:

  1. Register A Business Name: In order to build a brand for your web host resell business, you need to register your business with Corporate Affairs Commission (CAC) as a legal entity. You can register a business name for under N11,000. After you register a business name, the next step is to open a corporate bank account for your business. Most banks require N10,000 minimum balance to open a Corporate account and a copy of your CAC certificate.
  2. Set up A Website: The next step is to set up a website for your business. You need to purchase a domain name for your site for $10 a year. You may hire a programmer to create the business website for a fee. You can hire programmers from freelance websites such as Fiverr, Upwork or simply create a new thread on Nairaland. The reason it is preferable to hire a programmer is because of the payment gateway that will be attached to your site for online payments.
  3. Purchase A Reseller Plan: Most companies offer very cheap reseller plans. If you intend going big on this business, then you need to purchase a larger disk space.
  4. Advertise Your Business: Advertising is one important aspect of this business. It is when you advertise your business that people get to know about your services and subscribe. You can advertise your Web host resell business via Facebook advert, Google advert, Fliers and Posters and word of mouth referral advert.

Like any other web-based business, reseller web hosting business is a serious business. It is not a get-rich-quick scheme. You can succeed faster and make better profits than with regular offline business but you must treat it as a serious business. You need to commit your time, resources and finance to make the business work. Be ready to answer your phone or respond to emails at any hour of the day. Your customer support goes a long way to keeping your customers and making new ones.

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