Reseller Hosting Packages: What Should You Include and How Should You Price Them?

Reseller Hosting Packages: What Should You Include and How Should You Price Them?

As a hosting reseller, you have an opportunity to create a brand and services that your clients like without having to worry about the technicalities associated with web hosting. When you start your business as a hosting reseller, you define your target segment, try to identify the problems that they are facing with their current hosting plans and offer solutions via your services. Despite the quality of services offered by you, being a new brand, pricing, and what you offer in a package can make a lot of difference. In this article, we will offer some tips to help you create Reseller Hosting packages that your clients love – in terms of the resources offered and the price.

What do your clients expect?

Before you start creating hosting packages, it is important to understand client expectations. Most hosting resellers approach a specific target market and create hosting packages tailored to them. In such cases, the need for understanding client expectations does not arise since the packages are designed after taking the expectations into consideration.

However, if you haven’t approached a specific market, then you need to start now. What kind of clients would you want to target? Web designers, who want to offer hosting services to their clients as an extended package? Start-ups? Self-employed professionals, like freelancers, accountants, etc.?

Based on the definition of your target market, you need to determine the kind of resources they would need and the price range that they would be comfortable with. You can start with a cost-efficient package that offers resources enough to run a basic website. Also, give them an option to upgrade if needed.

Usually, new site owners find hosting expenses to be unnecessary and try to look for the cheapest option. However, that does not mean that you start charging less than a dollar a year! Stick with your pricing but offer discounts on non-resource-related items like domain registrations, etc.

Remember, you might not get the combination of resources and pricing right the first time. It is possible that you might have to alter it a few times before you find the right combination. It is a process – give it time. As you grow, you will observe certain trends or behaviour patterns that you can leverage to plan discounts or hike rates. Ensure that you always keep your clients at the fore of your mind while determining the price and resource combination of a package.

Summing Up

Web hosting is a competitive industry. Every month hundreds of new resellers launch their web hosting business around the globe. In such a market, the only competitive advantage that can work for you is a comprehensive understanding of your target market and having the right hosting package in terms of resources and pricing ready for them. Never try to beat your competitors by slashing rates or offering more resources at the same price. Instead, offer value to your clients that benefit their business, and they will be happy to spend a few extra dollars for your services.

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