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This year I decided to focus more attention to the dynamics of the reseller web hosting market and those web hosts who provide good reseller hosting and some of the trends we have seen in the reseller hosting arena over the past few years and how it is impacting the web hosting industry today.

Within the last 10 + years reseller web site hosting has been an area of growth for web hosts. Companies like iPower web started to launch a successful reseller hosting platform back in 2001-2002 and caught many webmasters who had client and who wanted to be able to offer value added services to their clients which they could develop another profit stream. Those webmasters typically had been involved in the affiliate programs before earning a one off commission for every one of the web hosting clients they signed up with a particular host. Over time these webmasters learned that they could purchase the same hosting plan for less and then increase the cost of that package to their clients and resell that package at an increased profit and realize that profit year over year which netted them a better return on the investment than if they had simply received a one time commission from the web host, albeit they may have to wait a full year or two to see those profits over the affiliate commissions if they did not tack on a large enough upsell to their clients.

This past year we saw that many more web developers were becoming resellers as people lost their jobs due to the economy and fell back onto supplemental jobs or second jobs which they may have been doing even with another full time job and this was a means for them to make extra money while looking for another position or finding another job, some webmasters went back to work full time as web design for their primary occupation and the need to find new areas for them to profit from their business was essential.

There have also been the emergence of specialized Green Reseller companies like Green Geeks which provides Green Web Hosting to their customers and found that many of their customers are web site developers who were looking for a Green Web Hosting Reseller program which Green Geeks then developed for them. Green Web Hosting has become a more dominant force recently in the web site hosting industry.

I expect that in the coming year 2009 we should see more people become resellers of web site hosting as they deal locally with their clients advising them in all matters including hardware, web site design and management, internet services and web site hosting.

Let’s hope 2009 gets us all back on track, Peace on Earth and goodwill to everyone out there.

Jack Hunibunsh

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