Fasthosts: 80% of Resellers Profit
UK-based web hosting provider Fasthosts (www.fasthosts.com) released the results of a study on Tuesday, revealing that 80 percent of businesses that begin to resell web hosting in addition to their regular products or services earn a profit within one year.
In September, Fasthosts introduced its reseller services to the US market in September.
The survey, which looked at 793 resellers, presumably from Fasthosts' customer base, also found that 66 percent, or two-thirds of the participants, found it required little effort to cross-sell hosting to their existing customer base.
Another 50 percent said they had increased their average length of service per client as a result of reselling web solutions. And 61 percent of resellers said they invested less than $1,000, excluding monthly subscription fees, in setting up their own reseller hosting operation, thus making reseller web hosting a compelling business proposition.
"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," says Fasthosts in its most recent announcement.
Although the results from the survey are worth noting and lends support to the financial benefits of setting up a reseller hosting business, one can't help but take the results with a grain of salt considering Fasthosts specializes in reseller hosting solutions.
Releasing a press release touting the benefits of reseller services and even including results like "84 percent of those surveyed would recommend Fasthosts as a reseller partner," inevitably makes one wonder how much weight he should put into the survey's outcome. Presumably there is credibility in the numbers, but how much?
"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," says Steve Holford, chief marketing officer of Fasthosts. "By offering web solutions alongside existing services, many businesses find that they can bolster their revenues and protect their client relationships."
Fasthosts was founded by Andrew Michael in 1999, before being sold to 1&1 Internet for £61.5 million in 2006. The company says it is a "leading reseller web hosting provider and UK's number one web hosting company," responsible for more than one million domains.
WHIR TV recently sat down with Holford in at The Michelangelo Hotel in New York City to learn more about Fasthosts' reseller hosting expansion across the pond.
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