When you start a web hosting reseller business, you need to make some important decisions. These include choosing the right hosting company, analyzing the hosting needs of your target market, choosing the right OS – Linux Reseller Hosting plans or Windows Reseller Hosting plans, creating customized web hosting plans, and most importantly pricing the packages right. While the costs of the Reseller Hosting plans play a role in the price of the hosting packages designed by you, pricing the packages right is important to ensure sustainability and profitability.
Today, we will be talking about the things that must look out for, while pricing your Reseller Website Hosting packages.
1. Understand the needs of your target audience
Understanding the expectations of your prospective clients is the first step in determining the price of the Reseller Website Hosting package. Think about the target market and try to assess their expectations from the hosting service. You will have to provide resources based on their needs, and the price would vary accordingly. Also, tech-savvy clients might be willing to pay more for resources, while new site owners might prefer basic plans that are less expensive.
2. Offer cost-efficient upgrades
Most site owners are willing to pay more for creating more databases or email accounts. However, if you can offer these upgrades at a discount, they might see value in your hosting packages and opt to do business with you.
3. Look at your bottom line
As a Hosting Reseller, you purchase resources from a hosting company and create packages using them. Hence, if you need more resources, then you will have to pay more and charge your clients higher accordingly. Hence, it is important to keep a close eye on your bottom line to ensure that you remain profitable.
4. Don’t try to be the brand that offers the lowest price
Many new Hosting Resellers make the mistake of trying to beat the market by keeping low prices. This can be a counterproductive tactic as there will always be someone trying to beat you to it, and running a profitable business with a few cents in profit can be impossible. Most site owners understand that quality web hosting comes at a price and are willing to pay for the right package. Focus on cost-efficiency rather than low prices.
5. Alter the price until you find the ‘sweet spot’
When you start your web hosting reseller business, you cannot expect to get the pricing right on your first attempt. Hence, be prepared to learn and change the pricing plans as you go. Based on your target audience and market conditions, this can vary. Therefore, ensure that you are nimble-footed to the extent of being willing to make changes to the prices of the hosting packages until you get a better grip over the market.
Remember, the price of the hosting package is an important factor that helps site owners decide on buying it. While you can’t price it too high or too low, if you can offer a web hosting package that is tailored to the needs of your clients, then they will be willing to pay a little extra. Also, you will have to offer support to all your clients. Factor in that aspect too before deciding the price. Good Luck!