Web Hosting Resellers
By
Staff
Just what is a Web host reseller?
It is a business, and independent contractor,
that buys server space at a discounted price
from a higher-tier Web host and then resells it,
sometimes in smaller increments, to its own
clients. The reseller often enhances the value
of their Web hosting services by offering
special expertise in addition to providing
business consumers with an Internet presence.
The typical customer of a
reseller is an “end-user” such as a small
business. These customers add continuity to the
Web host industry's supply chain. Resellers act
as "middle men" by extending their revenues to
reach higher-tier Web hosts who benefit the most
because they essentially mass target their
products and services in niche markets. The
reseller can then mark-up the cost of these
products and services to make a considerable
profit.
Most resellers are comprised of
second-tier hosting companies, Internet service
providers, Web designers, publishers, domain
registrars, or individuals who want to
capitalize on the expanding market for
enterprise-class Internet services and
solutions.
They know that they don’t need to
maintain a rack of Internet servers to be
successful at providing top quality Web hosting
services. In fact that they don’t even maintain
infrastructure. This allows them to provide
additional “value-added” services that are cost
effective. It also allows them the ability to
provide the best possible e-business solutions
to their customers.
Web developers and system
integrators are resellers who are responsible to
provide hosting that ensures compatibility with
the solutions that are implemented. Today,
business consumers want and need "integrated
solutions." Strong, reliable Internet
connectivity is a “must have” as a central
component. For this reason, business consumers
specifically seek out resellers who provide this
requirement.
Resellers are also selected as a
total “Web solution” because most specialize in
customer relationship management. The emergence
of many second-tier Web hosts can be attributed
to the growing need of business consumers to
locate a hosting provider that can give them not
only the best that network technology has to
offer, but also provide them with exceptional
customer service. This is where resellers fit
the bill.
While many higher-tier hosts do
provide technical support, the volume of their
client base prevents them from offering
personalized customer service, especially for
new business consumers buying Web hosting
services. This gives resellers an opportunity
for to add real value to their services, by
offering their customers a higher level of
technical support and more personalized customer
service.
Customer service is enhanced in
several ways. By creating more in-depth,
customized documentation for customers and
leveraging their resources, resellers are able
focus more on the quality of the service that
they provide, leading to increased customer
satisfaction. Because of this, resellers have
gained a strong, loyal customer base of small to
mid-sized enterprises (SMEs) that purchase Web
hosting services.
It
is estimated that approximately 65-70% of the
client base of higher-tier SME Web host are
provided through resellers. This is important
because it makes resellers a tightly integrated
component of the overall SME segment of the Web
host industry. With projected rapid growth
within the next three years, the reseller Web
hosting industry shows no signs of slowing down.
It offers an appealing and profitable
opportunity that will not only build solid
business partnerships, but also generate
increased profits.
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