October 16, 2009, Newsletter Issue #205: The Disadvantages of Resell Hosting

Tip of the Week

Although resell hosting is a great way to make money from home and start your own business without producing your own product, there are some disadvantages to this option:
- Marketing your product can be pricey. Pay-Per-Click campaigns through the major search engines and getting a good banner on popular websites will both cost you a pretty penny. On the other hand, free marketing methods can take a long time to pay off and will only work if you do them consistently.
- In order to make a decent income with resell hosting, you need to know how to market the product. Customers will not just fall into your lap, you have to know how to find them and reel them in.
- If you buy a large resell hosting package, you could risk not finding enough customers and losing out on money.
- If you buy a small resell hosting package, you could risk not having enough space. You can always purchase another small package; however, if you had purchased a large resell hosting package in the first place, it would have saved you up to $50+ per month (depending on how much extra space you need) over two smaller packages.
The biggest factor with resell hosting is learning profitable marketing strategies and keeping your Web space-to-customer ratio as low as possible. If you can master these two things, you should do well in the resell hosting business.

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