Reseller Hosting has made starting a web hosting business easy and cost-efficient. Over the last decade, many entrepreneurs have launched new Reseller Hosting businesses catering to specific market segments. The low cost of entry and the lack of any criteria to become a Web Hosting Reseller has led to a massive surge in new businesses. However, despite the ease of entry, running a successful Reseller Hosting company requires effort and time. Without proper preparation, many Hosting Resellers fail to survive for long and quit the business.
Today, we will look at the top reasons that drive Hosting Reseller to quit.
1.Failure in maintaining profitability
Web hosting is a competitive industry. Many Hosting Resellers make the mistake of entering the market with the sole strategy of offering the cheapest hosting services and attracting as many clients as possible. We believe that the core strategy is to attract thousands of customers and then make profits. While this seems like a good plan on paper, managing and servicing thousands of clients is not an easy task. Also, seeing minimal or no profits, such resellers tend to quit since they can’t maintain feasibility.
2.Having a below-par team
Most Reseller Hosting businesses start as a single-person enterprise with the individual managing everything from marketing, sales, onboarding, query-resolution and administration. However, the need for a team arises as the business grows. If the Hosting Reseller has not been able to generate decent profits, then they will not have the budget to hire quality resources and end up with a below-par team. It impacts the quality of services as well as the business and results in the reseller calling it quits.
3.Lack of focus on promotion and marketing
There are numerous web hosting companies competing for business, and resellers and affiliates offer hundreds of plans to site owners. Also, with social media and search engines driving most of the traffic (and hence business) to websites, any company that does not promote or advertise aggressively tends to get left out. We are not talking about free or paid promotions here. But, as a Hosting Reseller, you need to ensure that you promote and market your services to ensure that you attract the right clients for your business.
4.Not offering adequate support and service
Websites run 24X7. Hence, site owners expect their hosting provider to offer support around the clock. If the site was to face some performance issues due to a technical problem, then you need to be there to provide a resolution. Timely and efficient grievance resolution is a crucial aspect of establishing customer loyalty for your business. Some Hosting Resellers offer support during business hours but leave site owners on their own during non-business hours and holidays. Site owners gravitate away from these hosts, and the resellers experience a high rate of attrition, leading to shutting down of business.
Before you start a web hosting business, ensure that you consider what it takes to run a successful business. As a Hosting Reseller, you will have certain responsibilities and will have to meet the expectations of your clients. Be prepared to manage all aspects of the business, and you can lay the foundation of a profitable hosting business. Good Luck!