If you feel that there is good money for taking a web hosting reseller account and selling website services, then you are quite right. But with money, there are so many issues that everybody can not. Those who have an affiliate business such as website designing or coding, it is easy to sell hosting services due to their pre-technical knowledge and existing customer base. This article discusses some common issues that are facing web hosting resellers regularly. Although most of them are well-equipped to deal with these issues, some newbie resellers may be overwhelmed by it.
To keep a healthy cash flow, a reseller has to ensure that she collects payments on time from her clients. If their customers do not pay, they will have to pay less and pay their pockets. Payment is a major reason that web host outsources the development of its business for resellers. If a reseller gives credit to its customers, then it should be kept in mind that it needs to meet the payment deadline and there are certain costs which are recurring. If a reseller continues to pay for a customer and bills him after heavy interval (such as 2 – 3 years) then it can be difficult to recover the money and he may lose some of his bargaining power because The service was already distributed.
Strict Web Host Payment Policies
Even though there is a delay in client payments, web hosts typically have very strict payment policies, which are required by the reseller partners to make timely payments. This means that if the payment is not made, either a reseller is charged with a heavy penalty or the account is suspended. Depending on the relationship with the provider, the reseller can provide some credit services to the reseller, depending on the amount of business and company policies.
Misuse of services
Sometimes suspended or limited due to the end user account activity, which violates the policies of the major web host. Due to spam complaints, malware or even hacking efforts, web hosts go to tremendous lengths to ensure their servers are safe. When a customer account is suspended, the reseller is usually the first level of support to contact. Since they have no real control over server administration, they can often be in a sticky situation, which are caught between policy-driven web hosts and a non-compliant but valuable customer. It is only in situations that the true interpersonal skills of the reseller are tested.
Troublesome Customer Support
Occasionally resellers may run into a very difficult customer who is not satisfied yet. This is mostly due to the lack of knowledge of web hosting or the web designer or the codeer who wants to transfer the customer to their hosting services. There is no such customer who can not accept that there is some lack of research or knowledge. This is another reason that the hosters prefer a reseller to allow customer support to handle, because at times, the resources spent to take a hard customer to participate may be better utilized to get more business is.
Competition in the web hosting area is very high, especially due to the minimum regulatory or governmental compliance and short entry barriers. This causes the small and medium businesses to sink simply against the tough giants of the industry. Competition is so intense that each hosting business uses innovative tools, tries to overtake others, which may sometimes be unethical. Although there are no laws governing the business of web hosting and operating the hosting business, online reviews, customer satisfaction websites, and even online poll websites help keep the web host.