Monday, June 17, 2013

The Business Model Called Dedicated Hosting Reseller

By Margarita Joseph


The business of dedicated hosting reseller has profit potential. This is because, there is growing demand partly due to increase in the number of online enterprises. With time, a web based business that is using shared hosting will have to migrate to dedicated servers so as to be able to handle high traffic. Of course, an entrepreneur needs to be acclimatized with all the necessary costs so as to know how he will maximize profitability. Also, the issue of marketing, matters if all that is desired is to maximize gains.

Technical matters are at the heart of the hosting business. It is easy to be intimidated by hard industry jargon. An entrepreneur needs to understand some terms if he wants to interact properly with other market players. Deep technical issues are the preserve of experts. There will be a team of professionals who will be on the payroll of the mother company. Such professionals will attend to day to day server management and will also answer technical queries that have been raised by customers.

There are many options to choose from. It is the duty of the potential entrepreneur to separate facts from marketing hype. Thorough research work has to be carried out. Information that has been obtained from a trusted source can be relied upon as a basis for making decisions. It is advisable to opt for the services of a firm that has friendly conditions and terms.

The final choice must be an enterprise that has good technological infrastructure and reasonable stipulations. The best firms are the ones that have existed for more than ten years. A reputable market player who is not new in the industry will rarely disappoint. It is possible to find a new business that is associated with best industry practices.

The purpose of purchasing reseller accounts is to sell such products to willing buyers. Therefore, the sales process will be an inescapable reality. Before carrying out sales related activity, an entrepreneur should establish classes of people and business that are likely customers. The just mentioned will include established firms and government entities.

Understanding a market should precede actual marketing activity. Selling tools provided must be used during the course of carrying out a promotion exercise. Advertising needs to be combined with affiliate campaigns.

A serious businessman should strive to know the costs that have to be incurred and how such expenses can be minimized. Of course, there will be data center fees. Hardware maintenance will be an expensive affair. Definitely, costs will be passed down to the consumer.

The final price will be determined after considering expenses and desired profit margin. An entrepreneur should strive to make reasonable profits. A consumer must get great value for his money. If customers are satisfied, they will refer others.

There are business models that resemble dedicated hosting reseller business, in one way or another. To succeed as an entrepreneur, business commonsense is needed. Value addition principle and quest for profits, must govern a business person.




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