According to new research released by Fasthosts Internet, a Web hosting provider, 80 percent of businesses that begin to resell Web hosting in addition to their regular products or services earn a profit from the practice within one year. This is due to the low investment costs involved in reseller Web hosting services.

 

Fasthosts Internet’s findings are based on a survey conducted on 793 Web hosting resellers. Among the surveyed, about 66 percent found it ‘easy’ to cross-sell hosting to their existing customer base. Half of the participants in the survey also said they have increased their average length of service per client as a result of reselling Web solutions.

 

Reseller Web hosting, in today’s tough economic climate, is a low risk and profitable way to develop an enterprise such as an IT or marketing related business, says Fasthosts. About 70 percent of the respondents of the survey said they would recommend reselling Web hosting to other businesses such as theirs.

 

According to the research, 61 percent of resellers invested less than $1000 in setting up their own reseller hosting operation (excluding monthly subscription fees) and 84 percent of those surveyed would recommend Fasthosts as a reseller partner.

 

The recurring fees model and healthy profit margins involved with Web hosting also contribute for the growing interest among resellers. About 64 percent of resellers reported that they had increased overall 'revenue per client' as a result of reselling Web solutions.

 

Fasthosts recently launched one-year free unlimited reseller Web hosting, offering a new way to resell its own-branded Web solutions including Web hosting and domain names. This, according to Fasthosts, provides resellers with unlimited Web space and bandwidth enabling them to create their very own packages, including hosting, domains and email solutions, and set their own prices.

 

“In recent months, demand for reseller Web hosting has been brisk as more IT related SMBs are seeking to diversify and add strings to their bow,” said Steve Holford, CMO Fasthosts Internet. “By offering Web solutions alongside existing services, many businesses find that they can bolster their revenues and protect their client relationships.”

 

Creating a quality Web hosting brand is an efficient way to generate revenue, Holford said. “As the Web becomes more critical for all sizes and types of business, the Web solutions market will enable resellers to capitalize on growth areas such as mobile email, collaboration and ecommerce.”