80% Of VARs Reselling Web Hosting Make A Profit

Two-thirds find it 'easy' to cross-sell web hosting to their existing customer base - Half increased average length of service per client as a result of reselling hosting Eighty percent of businesses that begin to resell web hosting in addition to their regular products or services earn a profit from the practice, according to research by Fasthosts Internet, (http://www.fasthosts.com), a web hosting provider. The survey of 793 resellers, also found that 66% found it "easy" to cross-sell hosting to their existing customer base, and 50 % have increased their average length of service per client as a result of reselling web solutions.

In today's difficult economic climate, the figures lend weight to the concept of reseller web hosting as a low risk and profitable way to develop an enterprise such as an IT or marketing related business. Fasthosts launched in the United States last fall with an aggressive launch offer, 1 year free unlimited reseller web hosting, offering an easy step to resell private label web solutions including web hosting and domain names. Fasthosts' unique philosophy provides resellers unlimited web space and bandwidth enabling them to create their very own packages (including hosting, domains and email solutions) and set their own prices.

Some 70% of Fasthosts resellers surveyed would recommend reselling web hosting to other businesses such as theirs. In 2008, the low investment costs involved make reseller web hosting a compelling business proposition. The research found that excluding monthly subscription fees, 61% of resellers invested less than $1,000 in setting up their own reseller hosting operation. A further 84% of those surveyed would recommend Fasthosts as a reseller partner.

Steve Holford, CMO of Fasthosts Internet, said, "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. By offering web solutions alongside existing services, many businesses find that they can bolster their revenues and protect their client relationships." The recurring fees model and healthy profit margins involved with web hosting can also be attractive for those under pressure to grow revenue streams. Sixty-four percent of resellers reported that they had increased overall "revenue per client" as a result of reselling web solutions.


[bsminfo]

0 comments: