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Domain or Hosting reseller? Who is more profitable?



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Domain or Hosting reseller? Who is more profitable?

We all know what reseller word mean, and we also know that reselling it’s a profitable business same as selling. Now, these last days I’ve been thinking to set up something new, actually I wanted to expand my services and to experiment a little with some new services, with “experiment” I want to say that I’m thinking to set up some new services more for testing purpose in sense that I need to see how it goes, it could be a fail or success, but without trying it’s hard to say, right now it’s just an idea.

They both could be very profitable, I’m not afraid of starting or managing it as a business as I’ve enough knowledge I think, but the only fear is that as any other business in the beginning you have to make some investments to put it alive, and another thing that is stopping me is that I don’t have enough time.


Have you ever tried to resell one of those two services?
What are your thoughts on this?


All your opinions are valuable…

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RaduV

Well you might give it a try. In any new endeavour you have to take a leap of faith and give it your best. I would go with both services but are you sure that you have the necessary resources to transform it in a viable business?

I am talking about TIME, MONEY and KNOWLEDGE (here you've got it covered). I am sure that you will have to deal with a lot of newbie customers that will require assistance for any problem. A while ago I had bought my host from HostGator and my domains from Namecheap and GoDaddy and I can assure you that for any minor task, I was calling the Support. I was a pain in the XXX and I realise now what a time consuming task it is for the clerks working there to sit and fix everybody's problems.



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procoder

Thank you for your thoughts Radu!

You've mentioned support that is very important when it comes to business, especially when we are talking about businesses related to internet. Hosting and domain reselling, they are both two things that needs a lot of time to manage them, giving to my customers a good support is something that I should consider doing as support is the key to build a successful business. It could be a great service, but without support is nothing.



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Everett

I would go with both services but are you sure that you have the necessary resources to transform it in a viable business?

Yeah, I'll just go ahead and sell both services, because you can't have one without the other. Plus, you're saving future potential customers time by having the two services in one place. The only issue is, is those giant competitors. What will make your business better? Why would customers go to your website to purchase domains and hosting? You need to form a business model before you get started and find out what those other providers don't have that you can add.

Not only that you need to think about server costs, and how much profit you'll actually make. Do you think you would be able to cover your monthly expenses? Just some things to focus on. Good luck with whatever you do though. Domain or Hosting reseller? Who is more profitable?



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Lynne

Yes I have to admit that i also wondered about the competition because there are some really big names out there for hosting and domains.



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procoder

Thanks for your reply Everett!

Actually you're right, you mentioned some very valid points, and yeah there are some big competitors out there, but I don't think that I'll have all things that I need to compete with them, at least not in the beginning. Time will show if my business will be in the same level to start competing with them.

Server costs is something that I've been struggling with, i'm not planning to go big, but I should double think it again as I don't want to risk.



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Everett

Yeah, nothing like losing money in a project that you thought could profit. I mean if you stick to like maybe small business websites, or even blogs like wordpress you may be able to launch off the ground. I was actually part of a hosting site years ago, and it didn't do so well. I was never paid because there wasn't many clients actually wanting to buy hosting packages. The hosting was fairly decent, and the prices were decent, but we were crushed by the competition, and who wants to host with a small guy anyway? That's what i thought, then i eventually moved on from there.. lol



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Lynne

Yeah I have to agree with RaduV here, the support side could turn out to be very time consuming.

I don't see anything wrong with trying it out, you certainly have the knowledge and online experience to give it a really good go. I would think reselling both domains and hosting would be best since they often go hand in hand. Someone that buys a domain will almost certainly need hosting for their new website too.

I like the idea of using the same company as far as possible, I am not fond of having accounts all over the place for different things. If I can have my hosting and domains at the same place at a decent price with really good service that would be my preference.



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procoder

Thank you for your opinion Lynne!

Support can take a lot from my time, time that I don't I think I'll have. I've been thinking about that part, as I don't want to give up on other things for something that I'm not sure 100%. However, sometimes you have to choose what you want to do.

And yeah you're right, I'm one of one those people who prefer to have all things in one place, for example, right now I'm using only namecheap as domain registrar and hosting, so yeah I should offer both services from one place.



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Lynne

Yes I agree even if the pricing is a little more to have it in one place, if the poduct/ service is great and the customer service and support from the company is brilliant then i don't mind paying a little bit extra for that.

I would think support queries would take up a lot of your time and energy but perhaps you could hire a trusted VA to handle this on your behalf?



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idealmike

Domain or Hosting reseller? Who is more profitable?

Domain reselling is much more valuable as there are many more purchases for domains being made every day than there are for hosting. Most people buy hosting that allows them to use multiple domains with it. So they only really buy it once and subscribe to some plan that gives them a lot of features, b/w, storage space, unlimited addon domains etc. And then every time they buy/register a new domain, they use their current hosting plan to host the site for it. And the actual domain hosting itself is done either with the registrar they purchased the domain from or it can be migrated to another registrar. But you'll have to use your own name server addresses with them.

But there's still a lot of money to be made in reselling hosting as well. There are more people getting online today. And more people becoming webmasters than before and the number is growing. So there are always people that will need domain and web hosting. The only thing with that niche is that there are some very big players in it that have cornered the market that you'll be competing with. The like of NameCheap and GoDaddy, BlueHost, HostGator, iPage, Name and 1&1 etc. Obviously, there are many more as well. And many more smaller domain and hosting registrars, services and sites online you can find in many different countries around the world.

So you'll be starting off as a very small fish in a big wide ocean that's full of whales and megalodons. But it's not to say that in time, you can't grow and become a big fish as well! Domain or Hosting reseller? Who is more profitable? In fact, most of these big names today all started as an idea someone had. Following an interest or passion and kills and knowledge they had in Internet technology / websites / domaining / hosting etc etc.

If you create a good brandable domain name and start providing domain and / or hosting reselling from it. You can grow and expand in time and with enough happy customers, with the right SEO and SMO to get you "out there" and noticed amongst the many others that have big budgets for such things. Then you can in time, maybe, become as big as them as well.

I would imagine all of the successful domain and hosting resellers and registrars of today thought positively like that about it from the start. So if it's something you want to do, don't even think twice about it. This is what you was born for! Domain or Hosting reseller? Who is more profitable?



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procoder

Thanks for encouraging and your opinion Mike!

Oh yeah, I get totally what you mean, actually right now I think I'm not even a small fish as I haven't started anything yet. Niche that I'm thinking to start it's not easy of course, and as you said there will be some big whales , and megalodons which are ready to eat me...

Like I said before, I'm not planning to go big, first I don't have a budget for that, and second I would never go big without being sure to something, even If had all the money I need. But yeah now or in the future, I'll give a try as this was something that I always wanted to start.



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EliteWriter

Both have their pros and cons of course, but if you are willing to do it right you can be successful in any one of them. There is plenty of competition in this market of course, but that does not mean that you cannot go for it. In time, if you try to offer something unique, you can do well.



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overcast

I think reseller make more money when hosting gets sold. And domain owners makes money when they sell some name. So it all depends on how the sales are going. Some of the time domain sales are more. And some of the time hosting sales are more. It all comes down to what you can do with that. It all becomes more relevant if there are any good options for you.



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vinaya

In order to make money by domain flipping, you need to hold domain names with commercial values. The domains should also be aged. IN order to make money from reseller hosting, you need to find buyers for your hosting. Both of these things are hard to achieve. Since most of the domains are taken for dot com, it is really hard to register a high-value dot com. The market for hosting is also already saturated.



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