August 21, 2009, Newsletter Issue #197: How to Split Your Resell Hosting Packages

Tip of the Week

If you decide to purchase a resell hosting package that you can divide into your own hosting plans, then you are going to need to learn how to divide them up to receive the best profit for your money. Below are two of the best ways to split your resell hosting package to produce a maximum profit.
1. The first idea is to advertise that you can split your resell hosting package according to the customer's actual needs. This is the best way to get the most money out of the space that you have, while giving your customers a customized service. The problem with this is that you will not be able to advertise exact prices and many people would rather know that up front, without having to contact you directly.
2. The second idea is to split your resell hosting package into very small plans and ask for a very small price. For example, many companies offer 5,000 MB for $8 per month. While this may be a good price, very few people need that much space. Even a small service business will not need that much space. If you offer a 500 MB plan for $1/month instead, you will make $20 off of 10,000 MB, rather than $8. At the same time, your customers will feel as if they are getting a great deal because they are saving $7/month. Although you will have to find 7 additional customers to make the same $8, this is a way to undercut competition prices and appeal to average customers, without sacrificing your profit.
You may want to try both of these resell hosting strategies to see which one will bring in the best profit.

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