I am currently looking for a business to invest in and I have been approached to invest about €2,000 in a reseller hosting business.

As my IT knowledge is somewhat limited I am not sure whether to proceed with investment or not. The margins seem quite low and it would need a large volume of sales to generate the type of profit I am looking for.

Can anybody advise me as to the pitfalls of reseller web hosting or what questions should I be asking?

How difficult would it be to generate sales and how effective would google adwords be?

First of all, from what I've heard from many web hosts, Google Adwords is no good to promote a new web hosting company.

If you're not very good with IT then a reseller account or a managed VPS would be a good start for you to learn.

First of all, from what I've heard from many web hosts, Google Adwords is no good to promote a new web hosting company.
I can definitely agree with this, speaking from experience, we've never had much luck using Adwords either.

I guess the question should be more along the lines of is this what you want to do? For the most part, you won't see much profit until further down the road, but it does pay off after much hard work :)

As my IT knowledge is somewhat limited I am not sure whether to proceed with investment or not. The margins seem quite low and it would need a large volume of sales to generate the type of profit I am looking for.Your IT knowledge may be limited but your business sense is spot on. With an investment of only €2,000 you can't hope to compete with the big hosts - you need to find a niche. If the business plan you're presented with doesn't show this, forget it.

I also agree. We have been using Google Adwords and it is not a good way to promote a host. You would be better of renting a sticky at WHT.

Choose your reseller hosting company carefully!

Your IT knowledge may be limited but your business sense is spot on. With an investment of only €2,000 you can't hope to compete with the big hosts - you need to find a niche. If the business plan you're presented with doesn't show this, forget it.

started with 10 dollars and im fine XD


I would reccomend a innohosting reseller as they have end user support

Adwords is great if you want to try to boost up your alexa ranking, but as far as getting clients, for the start I recommend ISPCheck or as most people here at WHT know it as Hosting Catalog. You can run a pretty good ad for $25/week try to stay in the top 3, dont big $1 unless your pockets can handle it. This will get you a few sign ups a week, trust me I know :)

If you are looking for a reseller account you should take a look at the Reseller Section on the forums, they have many great offers.

started with 10 dollars and im fine XD Are you competing with Godaddy, 1and1 etc? Are you making a living out of it? How long did or would you take you to reach that level?

Adwords is great if you want to try to boost up your alexa ranking Maybe, but there are way cheaper ways to achieve that. Alexa ranking is little more than ego stroking anyhow. :D

Maybe, but there are way cheaper ways to achieve that. Alexa ranking is little more than ego stroking anyhow. :D

Alexa ranking is very important, no visitors no customers.

Alexa ranking is very important, no visitors no customers.

Alexa ranking has been of little importance for some time now. it can be very easily manipulated and Google is (hopefully) smart enough to know that.

I have to agree, adwords is far from the best way to advertise this type of business. Far better my be to advertise via banner ads directly on the sites that serve your chosen niche market.

Google adwords is not good in advertising web hosting.
What is the income you want to have from this?
How long can you wait until there is an income?

Hi

welcome to web hosting industry..

buying a reseller hosting is good start, you need google adwords advertisement, but dont depend only that, try many other methods in seo to popular your business..

$2000 is good amount, plan and start advertising..

Thanks in advance..

I would suggest you to take the dedicated route, it helps in long run

well if its the first time you are going for hosting ...
i think you should go for a reseller account first learn something about cpanel/whm

then move on to VPS/Dedicated depending upon the no of hits or no of costumer you have...

to select a host for reseller you must look out for their uptime and most importantly their support coz in the beginning you ll need their support every now and then.

this is what i think for your first step.
rest you can decide better for yourself than anyone else.

best of luck :)

Umm if you REALLY have that much interest in web hosting then i say starting as a reseller would be your best option. Nothing wrong with that.