Many entrepreneurs look to reseller hosting as a way to begin their own business with a low barrier to entry. They do this in the same way a national wholesaler provides goods for a local retailer.
Many hosting companies target clients with large bandwidth and data storage requirements. This is their core competency, and they focus their engineering and marketing resources towards these efforts. This does not mean to say that their servers or the IT department is not capable of managing many small clients as opposed to a few large clients, only that this is where the reap the highest benefit through their marketing. This leaves a huge opportunity for a reseller.
The owner of a startup can take advantage of this type of hosting company, contract for a large amount of data space and bandwidth, and resell it in small slices to smaller clients. In this way, the reseller targets the clients that do not interest the hosting company. In addition, because the hosting company is able to offer wholesale prices to its clients, the reseller can sell the smaller clients computer resources at a higher price.
One of the devices that allow this reseller hosting to function effectively are private namespaces. This allows the reseller’s clients to appear to have their own domain names. When the reseller registers his domain with the host, then it will have a name such as reseller and .com. His clients could receive a domain name with their client name attached to the domain, but this is poor branding. A superior solution is to use a private namespace to map the domain to the reseller account, and allow the clients the appearance of having their own site. With a private namespace, a reseller does not even need to disclose that he is such on his own website, as he sells to his clients.
The ability to setup a reseller hosting service bypasses many of the limitations toward starting a business. Perhaps the highest for many businesses is the money it takes to create a physical prototype and create initial inventory. This is generally out of reach of most entrepreneurs without a business loan, and those are hard to secure at the present time. For this reason, many startups focus on services, and many of these concentrate on internet distribution. However, even these companies must still fund the initial offering. A reseller service bypasses all of this and lets the owner operate solely by marketing, with almost no startup costs.
If you are an entrepreneur looking for a hot, current opportunity, consider reseller hosting. Use reseller hosting to market web hosting services with a very lean budget. 24Shells offers the best reseller hosting services.