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Many people that attempt to build a monthly residual income using reseller web hosting will ultimately fail after trying to generate traffic without much success. However, the smart resellers that learn to offer a variety of web-based services in conjunction with their hosting reseller services usually are the ones who have the most success. One way to boost your monthly income with reseller hosting is to offer domain names in combination with web hosting services. In fact, some hosting resellers include free domain name registration for a year (or in some cases for life) with all of their hosting plans for any new customers. The following paragraphs discuss the advantages of reselling domain names, as well as how much money you can expect to make doing so.
Deciding Whether Domain Reselling Is Suitable for You
If you already own a business that provides web-based products or services, then you may stand to make a great amount of profit through reseller domain hosting. This is especially true if you provide your clients with search engine optimization and marketing services such as link building, website creation, advertising promotions, and branding. If you are already a hosting reseller and you may be able to tap into your current client based in order to immediately begin earning a residual income basis. By offering domain registration with various services you can increase the likelihood of converting prospective clients into paying customers. Even if you do not yet own a business that offers web-based products or services you can capitalize on the ever-expanding hosting industry by starting today.
How to Make Profit of Reselling Domains
As a domain registration reseller you should be focused on generating a small profit per customer on a yearly basis. By doing this you can ensure that thousands of customers are bringing you a few dollars each year, ultimately adding up to several thousand or even hundreds of thousands of dollars. If you attempt to make a larger profit margin on each customer then there is a higher chance that they will not want to use your services, as they may be able to find more comparative prices online. Thus, you should sacrifice making a large profit margin per customer in order to offer a lower price instead. Aside from keeping the price and profit margins low, you should also consider offering additional services or trial services in order to make your domain registration products more appealing.
How Much Money Can Be Made with Domain Reselling
If you fully utilize all of the tools and resources given to you by your reseller hosting provider it is possible to make thousands of dollars per month (as long as you can solicit several thousand clients). On average, you should be able to make a profit of at least one dollar or more per client, per year. Thus, in order to make $20,000 a year with domain reselling, you would need to maintain a profit margin of one dollar on average while soliciting 20,000 new clients.
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Posted: February 28, 2011 under Domain Names.
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