So You Want To Be A Hosting Reseller? Consider These 5 Points

By Jim Ciampaglio

Lately, many development firms and other IT services organizations are adding hosting to their portfolios. As a broader trend, the tech sector is taking a more collaborative approach to delivering new capabilities to commercial clients, primarily because the list of services that clients need to optimize their operations is growing as fast as technology evolves.

Companies that add hosting services to their product portfolios can reap many benefits, including the ability to serve as their clients’ go-to source for all their technology needs. But as always, choosing the right partner is critical to success. Here are five points to consider when evaluating potential reseller partners:

1. Range of services and reseller terms. When evaluating potential vendors for a reseller partnership, it makes sense to take a look at the terms for hosting as well as at other services that might be a natural fit for the portfolio. With the right partnership, hosting services can not only open up a new revenue stream, they also enable resellers to determine the markup amount and bill their clients directly, receiving a special discount tied to volume. The vendor may also offer other services that expand the reseller’s portfolio, which can make the reseller’s client relationships even more “sticky.”
2. Resale-market appeal to broaden the potential customer base. Hosting partnerships are not all created equally, so it’s important to take a deep dive into the hosting product offering to make sure it reaches the widest possible audience. A technically sophisticated customer might be looking for advanced options, like virtual private servers, as well more prosaic products, such as shared email solutions. A product suite that matches marketplace demand will generate maximum reseller value, offering the right product mix for the broadest possible customer base.
3. The level of onboarding support. Vendors make many promises before forming a partnership with resellers, but will they follow through with a sufficient level of onboarding support? Here are some clues: Does the vendor make a dedicated account manager available to answer questions and walk you through the process? Are experts available to consult with on maximizing the return on the hosting portion of the product portfolio? Does the vendor offer hosting at a discount rate at first to help new resellers control costs? These are all important questions to explore before making a decision on a hosting partner.
4. Vendor sales and marketing support. A well-established hosting vendor should have expertise in marketing hosting services and a reputation for quality that can nurture success for a reseller that is just entering the hosting market. It’s a good idea to find a vendor who is willing to share that expertise by providing support, including sales and product training and collateral materials, that enable your team to effectively sell services. A vendor that offers co-marketing opportunities can also help the reseller get established quickly.
5. Additional support systems. Onboarding support is essential, but it’s also critical to evaluate additional support systems to ensure a successful reseller relationship for the long term. Vendor support should be in place at every stage of the partnership, so take a look at other types of support to ensure that resources are in place to handle pain points beyond the initial rollout phase. Ask about Tier 2 and Tier 3 technical support capabilities, and find out about access to system administrators. Only in this way can potential resellers ensure their partner will be there when needed — beyond the initial launch phase.

As customers integrate more sophisticated technology into their daily operations, their demands will shift, posing a challenge for companies that want to offer a full complement of services while maintaining focus on their core areas of expertise. A reseller partnership can be a great solution, giving designers, IT service providers and other companies a way to become a one-stop shop for their customers while continuing to concentrate on what they do best.

But it’s important to keep in mind that the level of quality and support varies significantly among hosting providers. That’s why it pays to consider the proposed relationship from every angle before entering into a new agreement. Companies should make sure the prospective partner offers services on terms that contribute to profitability and consider additional reseller services to expand revenue potential. Support services are incredibly important, so it makes sense to explore service levels prior to launching a reseller relationship.

Jim Ciampaglio is vice president of channel partners at Hostway Services. Ciampaglio joined Hostway in late 2014 to drive channel partnership activities for all Hostway services, expanding Hostway’s relationships with existing partners and forming new alliances to accelerate additional growth through expanding the Hostway offerings to partners of all sizes. Prior to joining Hostway, Ciampaglio led reseller and retail channel sales at Verio.