Reseller hosting providers are pretty much like retailers, they will purchase lots of disk space and bandwidth from large web hosting companies at cheaper rates (just like retailers purchase from wholesalers), and they can proceed to sell this space at a slightly higher price to people looking to start their own blog or website. If you are good at Internet marketing, reseller hosting can be a very viable business, and the best part is, it doesn’t require a big investment or lots of time to start earning.
In Pakistan, people are starting to realize the endless opportunities for making money online or working from home, and having your own reseller hosting business is another, potentially lucrative business that you can try. Best part is, because you are operating from Pakistan, you will be getting quite some advantages (and disadvantages), let’s take a look at both sides of the coins to help you decide better.
Reseller Hosting Pros:
Low Cost – From starting a business to hiring technical support staff, it will cost you peanuts as compared to someone operating from a developed country. Remember that even though your webhosting provider will take care of the problems at their end, you will have to provide basic customer support to your customers, so you will need to have some staff, thankfully there’s no shortage of skills and knowledge, since many students are pursuing higher education in computer sciences.
High Profit Margin – Because the costs are low, and also because you will be earning in dollars, you will be able to offer lower prices while still managing to earn good profits. Not only that, but having an online business that caters local as well as international customers mean that the business doesn’t get much affected because of the poor economic conditions in your local market.
Local Advantage – Many local businesses and individuals are now turning towards the Internet and looking to start their own website or blog. Needless to say, all these individuals and businesses will prefer to deal with a local guy instead of going for a random company online, so you have got a big market to capture if you play your cards right.
Reseller Hosting Cons:
Payment – Not being able to accept payment via PayPal.com is probably the biggest hindrance for all kinds of online businesses operating from Pakistan, but that shouldn’t stop you from starting a reseller hosting business. You can always go for 2checkout.com , moneybookers.com or Alertpay webhositng in pakistan in fact that will give you a certain edge over other hosts who accept payments only through PayPal.com, because you will find many potential buyers coming from countries not on PayPal.com list.
Reputation – People usually prefer web hosts with their servers located in regions like UK or USA. Being a reseller you must choose a reseller hosting program which is based in those regions, but you’ll have to give your own contact details and address on your website, and that might put off some customers who are visiting your website. So you will have to work harder to create a reputation and credibility, especially when you are dealing with international customers.
Lack of Infrastructure – Just like any other IT business you might be hard-pressed by the lack of infrastructure, electricity failures, or problems in your Internet Connections, so you will have to arrange for the backup for all of these mishaps.