Becoming an online entrepreneur through Web hosting partner programs is both fun and rewarding, but it can be difficult to determine the best way to make such an endeavour profitable. In the past, an individual who wanted to make money as a Web host had to invest tens or hundreds of thousands of dollars on networking equipment and staff, but today, two different avenues are available that allow entrepreneurs to make a profit selling website hosting plans to others: affiliate programs and reseller programs. However, it takes a little research and thought to discover exactly which one works best for a particular person or situation.
Understanding Affiliate and Reseller Programs
Anyone who is new to Web hosting and online marketing may have heard the terms affiliate and reseller without ever understanding what they are or how they differ from one another. In fact, many new entrepreneurs believe the terms are interchangeable, but all they have in common is that both refer to intermediaries selling products or services originating from others, which in this case, are Web hosting plans.
To put it simply, an affiliate is like a matchmaker. Affiliates for Web hosting providers find customers who want to purchase a plan and connect them with the provider. The affiliate then receives a percentage of each sale or a straight fee per sale. It is possible to build a solid, profitable business as a Web hosting affiliate, but many entrepreneurs use affiliate sales as a supplemental source of income for an existing endeavour. For instance, a blogger may have a respectable audience but not know how to make the blog profitable. He or she can continue to write and produce content for the blog while making money on the side as an affiliate for the blog’s Web host.
A reseller, on the other hand, is more like a traditional retailer. Resellers buy products from others at wholesale prices, mark them up for a profit and sell them directly to their customers. In the case of Web hosting, this means that the reseller purchases, or leases, a large chunk of server space or several full servers. The reseller then has the ability to sell web hosting packages to their own customers at a price of their choice. Even though the servers, the networking equipment and, possibly, the software are still maintained by the primary Web host, the reseller is creating his or her own Web hosting company. The reseller is also responsible for providing sales and technical support to their own customers, which can be done via a medium of their choosing.
When to Become an Affiliate
Web hosting affiliates are essentially third-party salespeople for providers. They specialize in marketing and online sales, leaving other business essentials to the Web host. Because affiliates only match buyers with hosts, they do not have to deal with delivering products or services, and all aspects of customer service are left to the providers.
The process for becoming an affiliate is simple. An entrepreneur registers with the Web host as an affiliate, and he or she is given a set of marketing materials, such as images and graphics, and the code to insert a custom link on a website. When customers click on the link, they are directed to the Web host’s site. If they purchase a plan, the unique link credits the sale to the affiliate. Affiliates may be paid per sale, or earnings may be collected and paid at the end of a set timeframe, such as monthly.
In affiliate programs, affiliates are only doing the preselling. It is up to the provider to actually close the deal, which can be the hardest part of the process. The costs for affiliates are negligible, and very little effort is required. However, the most successful affiliates are very innovative and not afraid to try new or unproven marketing techniques.
Deciding to Become a Reseller
Becoming a Web hosting reseller takes a great deal of effort, but potential profit is high, and entrepreneurs retain full control throughout the selling, setup and retention processes. A reseller is a complete business, so it is important to understand everything that goes into creating a successful company and brand.
While it is possible to create a business based fully on reselling Web hosting plans, many companies are simply adding Web hosting plans to an existing line of products or services. For instance, someone operating a Web design or Web content business could benefit by providing Web hosting as an additional service or as part of a package deal. The reseller can then sell the plans in any way that he or she sees fit for the business, and prices and payment methods can also be customized.
In Conclusion
Becoming a Web hosting affiliate or reseller can both be profitable for online entrepreneurs, but usually one or the other can be used to the greatest benefit of a particular business. Affiliate programs tend to require less effort, but most of the control is retained by the Web host. In contrast, resellers must form a complete business, but they also have complete control over how the business is operated.
Digital Pacific offers a feature packed set of Reseller Web Hosting plans which makes it super easy to start your own hosting company or alternatively, our generous commission based Affiliate Program is a suitable for option for the monitization your website or blog.
