In order to help get you started, let’s quickly talk about what Linux reseller hosting is, and a few tips to get you headed in the right direction.

What is Linux Reseller Hosting

Reseller hosting is similar to renting out a room in your house or apartment.  You get a your own Linux server space and then divide it up into smaller sections and rent out those sections.

Your customers treat you like you are the hosting company; however, all of the technical aspects are still taken care of by the parent company (the company you are renting your server from).  Essentially, you are the middle man.

Quick Tips to a Successful Linux Reseller Hosting Business

Here are a few quick tips that will help you succeed:

Start Small

The number one mistake is that most new resellers start off aiming for the stars and when they don’t get there in the first month, they get frustrated and quit.  All you need to do is concentrate on adding one client at a time.

Plus, if you got 100 new clients the first day, do you really think that you could effectively handle each one right away?

Get The Tools

When running a Linux reseller hosting business, it is important to understand that you will be dealing with all aspects of running a business from advertising to client management and billing.

There are certain tools that will make managing your clients and billing a much easier process.  In fact, many hosting companies that offer reseller accounts have a great package of tools to help you get started.

Don’t Forget About Marketing

So many resellers get caught up dealing with the technical aspects of hosting, even if they don’t need to, and never get around to actually marketing.

If your potential customers don’t know who you are or what you are offering, then they will never use your service.  It is important to not get so caught up in planning for the future that you forget about today.

Get Your Own Server… Eventually

In the long run, getting your own Linux server will drastically improve your bottom line.  However, this may not be something that you want to do right away.

First, you need to consider what would happen if you buy a server, or servers, right away and your business never gets off the ground. How will you recoup the investment that you put into the server?

The second thing to consider is that running and maintaining your own server takes a lot of work, especially when making sure that they are always up and running and well-maintained (especially when it comes to security and updated software).  This does take a bit of technical skill.

So while you should definitely invest in a server, it shouldn’t be done right away.

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However, the biggest mistake that most people make is that they look for a cheap reseller hosting package and start reselling.  Then after a few months, they realize one of two things.

First, they simply cannot create a competitive advantage based on price (which should be obvious because they are the middle man).

The second thing that they realize is that while they might come close to competing based on price (with sliver thin profit margins), their parent company simply isn’t a good hosting company.  They offer poor customer service or have a lot of down time or just slow load times.

When you choose a cheap reseller hosting plan, you are likely to get what you paid for.  Unfortunately, you didn’t pay much, and you aren’t getting much in return.

While a cheap reseller hosting package may seem like a great idea, it is important to look beyond the price.  Here are some common problems that you may encounter when searching for your next cheap reseller hosting package.

Overloaded Servers

Servers have a limited number of resources that are available at any given time.  One way that some hosting companies profit from creating reseller accounts is by overloading servers.

When this happens, websites load slowly (if at all) or the server could just crash.  Either way, this is not a recipe that will make your customers happy.

Get Your Customers Stolen

While this shouldn’t happen, it is an inevitability.  When one of your customers contacts the parent hosting companies support staff, they may ask about a different hosting option.

Before you know what happened, your parent company just stole your client.  Is this a common problem? Not really, but it happens, and it is much more likely to happen if you choose your reseller hosting package based solely on price.

No Stability

Just because a company offers a cheap reseller hosting package, it doesn’t mean that they will be around forever.

It is always a better idea to go with a proven parent hosting company that has been around for at least a few years and has a track record of successful resellers.  This shows that they are a stable company and also hints that they take care of their resellers and help them grow.

If you choose a new hosting company and they flounder, for one reason or another, then you have just lost all of your customers.

While choosing a low-cost reseller hosting package is ideal, you shouldn’t necessarily jump at the cheapest reseller hosting package on the market.

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