How to Compete as a Small Hosting Reseller with Large Businesses

Making a noise with your small hosting reseller business - Starting your own web hosting business as a hosting reseller is easy, but surviving amidst fierce competition and turning it into a profitable venture can be an uphill battle. To get started, all you need is a website, reseller hosting provider, and some carefully devised hosting packages, and you are good to go, except that now you have to face the formidable challenge of competing with the big wigs of the industry, the hosting companies which are many times larger than your small start up.

For example BlueHost with over 1.9 million sites hosted on their servers, or GoDaddy that manages more than 45 million domains? Quite intimidating stats,and even though you are not really up against the market giants like Go Daddy or BlueHost, still you will have to compete against many established reselling hosting companies, which are doing pretty good. Here’s how you can live through all that competition to tell the tale.

Small Hosting Reseller Business Tips

Making your Small Hosting Reseller Business Stand Out

Customer Support

One area where small businesses can triumph over the large ones is the customer support. Large businesses might be able to hire entire teams for customer support but the bigger your clientele, the harder it can become for the businesses to connect with each of their customers, as a result many customers can feel left-out.

What you can do as a small hosting provider is to create the much needed connection with your customers, make them feel at home by going that extra mile. Avoid using ready-made templates to answer their queries; and provide them with more than one option to get in touch. If you have got partners, you should ensure that every one of you are working together to get each and every query answered promptly. If you are the sole proprietor, you should hire someone to do the job because if you are looking to succeed as a small hosting provider; your customer support needs to be a cut above!

Finding Niche

The best way to compete with the big guys is to avoid direct confrontation. Remember that a big hosting company has to keep all types of customers in mind, including bloggers, Ecommerce stores, forums, social media websites, and the likes. And while the basic requirements are the same, each of these types have their own specific requirements, for example bloggers might be looking for some advance technical support because most of them aren’t good at that stuff.

What you can do as a small start-up is to single out a niche, put yourself in their shoes and think what exactly they’ll be looking for in a hosting package. Your job is to provide them with exactly what they are looking for. By doing so, you will avoid direct competition with the big guys targeting the entire market, while also winning some loyal customers.

Retain

Talking of the loyal customers, remember you will never be able to get as many new customers as a big business, mainly because they have the budgets and resources to spend on advertising and marketing campaigns (e.g. Go Daddy’s commercials during super bowl telecast). Therefore, your best bet is to retain your customer base while getting a new one every now and then.

Remember that retaining your customers is less costly than getting a new one, so you need to try your best to keep hold of your existing customers.

Using Social Media

Social Media is a Godsend for small businesses of all sorts, and web hosting resellers are no different. You need to be active at huge networks like Facebook and LinkedIn, trying to connect with webmasters and blog owners, doing that alone will bring you good enough customers on regular basis.

Same goes for web hosting or eCommerce forums, majority of big hosting companies do not focus much on having a presence at forums like webhostingtalk.com, even though they have a big user base. Being a small hosting provider you need to make the most of these platforms.

Recommended Reading from Amazon

1. The Complete Idiot’s Guide to Low-Cost Start-ups

2. How To Become Successful Internet CEO Within 30 Days

About the

Misheal Rome is a staff writer for 100Webhosting.com, an established web hosting website. 100Webhosting.com provides tips and tricks on web hosting, domain name, website building, SEO, social media, and web marketing. Want to get huge web hosting discounts? Want to check out if BlueHost sucks? Hop over to the website now!

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Comments

  1. I often though how viable launching a niche hosting site would be, from friends its a stressful business to get involved with but might be something I will pursue later on.
    Simmeon recently posted…Which Is Better: Organic List Building Vs Paid List BuildingMy Profile

  2. Your tips are very useful, leveraging social networks to build a brand image is important, thanks.

  3. Samantha Wright says:

    Hi Misheal, interesting post and you’ve supplied some sound tips for those looking to set up a hosting reseller business. I can imagine that it can be quite a competitive field when you have so many larger web hosting companies to compete against.

  4. For me If there is no customer support whether the firm is small or a big giant it can never make a mark on the customers but it may be possible that they make it in the market.It all depends on the brand name.The more big a company is,their customer service have not achieved so much they just want to build a customer list not the satisfied customer list.

  5. Hi Misheal,

    some great tips here! I have been thinking about BlueHost reseller accounts and I had know clue how I should proceed with that. Looks like you have some good knowledge about Reseller Hosting accounts, so I have some dumb questions. Although I haven’t checked out another reseller accounts options than BlueHost, you could give me some alternative options too.

    If I take a BlueHost reseller hosting account, can I give unlimited packages to my customers?
    My idea is not to charge my customers too much but to give them an almost free hosting account.
    Am I responsible for all the issues with the server, etc if I have a reseller account?

    I know these are very dumb questions, but I am not looking for creating profit out of it, but to reward my other customers with a free hosting account.

    Annetta
    Annetta Powell recently posted…Organo Gold Scam: Top Twelve AllegationsMy Profile

  6. chanikacha says:

    This tips are very helpful! Since most of us are not fully aware on how to launch a niche hosting site. This guide will surely stand out with other large company. I do agree with you on putting the Social Media because lots of marketer use facebook, twitter, google + etc to market and get some audience or clients.

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