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Issues related to running a reseller webhosting company

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With the growing popularity of reseller webhosting opportunities, there are a number of issues that resellers may find themselves surprised with.

Reseller webhosting encompasses so much more than just the webhosting itself, and all of these issues are critical to any reseller's success.

From start up to customer service to taxes and accounting, there is more than just the nuts and bolts of having the space to resell webhosting involved. And only the resellers who have a good handle on the rest of the business will be truly successful.

Start up costs

If you're planning to start a reseller webhosting company, then you need to set up a comfortable nest egg for start up costs. You'll need to pay for your own webhosting space for reselling. You'll need to set up a logo, whether you design it yourself or pay someone to do it for you.

You'll need to design and calculate service plans, ecommerce solutions for yourself, and a full complement of policies, from billing and service agreements to dispute resolution, termination, and more. You'll need to research what other companies are offering so that you can be competitive.

You'll also need to research price points for different services, again, so that you can be competitive with other resellers. It may also be a wise idea to have an attorney and accountant evaluate your business plan.

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Customer service

If you're a reseller, in addition to handling webhosting needs, you'll be spending a considerable amount of time on customer service issues, good and bad. You'll need to map out a customer service strategy and set up contact information for just that purpose.

You'll also need to devote a set amount of time dealing with customer service issues. These need to be dealt with promptly. These are your customers; without them, you have no business.

Think like a customer and make it as easy as possible for them to get their customer service issues resolved promptly and at much as possible, to their satisfaction.

Taxes and accounting

As a small business owner, which is what you are, you will need to handle taxes and accounting properly. You'll need to keep track of your webhosting customer accounts and have a billing process in place.

You'll also need a process in place to handle delinquent accounts. As a business yourself, you'll also need to record business expenses and income, calculating the proper taxes and payment of same.

Being a webhosting reseller can be exciting and lucrative, however it is important to consider that there is more than just webhosting involved.

All kinds of policies and operating procedures need to be established. Customer service needs to be a priority. And all tax and accounting procedures need to be in order. If you have the ability to think beyond just webhosting, you can have a successful reselling career.

It takes a bit of time to get it all set up, but if you set it up right the first time, you're halfway there to a great career as a popular reseller and you'll have customers beating down your door in no time flat.

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