What do I need to know about billing for my hosting services?
As a web site host or hosting reseller, you have numerous choices for programs to manage customer accounts and billing. To find the option that's best for you, spend some time researching business-related hosting resources like Operating your Business at ResellerForums.com, Running a Web Site Hosting Biz at WebHostingTalk or the Web Site Hosting Reseller Guides at the Web Host Industry Review.
After you've identified several billing program candidates, be sure to search the hosting forums for comments from other resellers and ask plenty of questions of both existing customers and the software manufacturer before settling on your final choice.
Do I have to be able to accept credit cards to start a viable hosting business?
While it's not a necessity that you accept credit card payments from your customers, you may be limiting your potential as a host by not doing so. It is possible to only accept money order, wire transfer, and check payments in return for hosting, but many potential clients may be turned away by this idea. In this age of instant everything, we've grown accustomed to not having to wait for things.
If you've decided against a traditional merchant account, you may wish to consider alternative ways to collect money online. Third party merchant accounts are usually inexpensive and easy to setup, thereby allowing you to accept credit card payments without much of an investment. Other services, such as PayPal.com enable you to accept credit card payments and pay only a small transaction fee in return.
The more payment methods you offer potential clients, the more people you'll be able to reach.
How can I protect myself from credit card fraud?
According to Cybersource.com, online fraud is on the rise. It's important that you, as a business owner, know how to protect yourself.
You can help to guard against credit card fraud by following a few simple guidelines:
- Start with the credit card. Check your potential customer's address and phone number with that of the credit card. Do they match?
- Call to verify. Telephone your new customer to verify the order. Ask for additional details, if necessary.
- Get a copy. If you're still wary, request a copy of the customer's drivers licence or front and back of the credit card.
Acquiring a well known merchant account with strong anti theft checking procedures will also help to ensure the validity of each order you receive. Remember, when in doubt, take the time necessary to verify the order.
I understand that there are certain countries that I should be wary of accepting orders from because of their high rate of credit card fraud. Is this a real concern? If so, what countries should I be watching for?
Online fraud occurs in almost every business, and web site hosting is no exception. It's important that you, as host, understand how to protect yourself, verify and an order, and prevent a fraudulent transaction. While there are varying opinions about the high rate of fraud originating from various countries, the same rules apply when dealing with any country.
You can help protect yourself by following a few simple steps:
- Acquire a good, solid merchant account with fraud checking capabilities.
- Call the customer to verify suspicious orders.
- Check the customer's IP. Does the IP of the customer's ISP match up with the customer's credit card address?
- Check the domain name. Run a WhoIs on the domain name in question. Do the details match the person who ordered hosting?
If you see a pattern of fraud developing from certain countries, you may wish to block IP addresses that originate from certain areas or turn down orders that seem to be likely candidates for fraud. As the host, it's your responsibility to protect yourself and your business.
If you find yourself the victim of fraud, you may elect to contact the authorities and/or file an Online Fraud Report.
How do I handle support for my web site hosting customers?
Once you've developed an effective business plan and have everything in place to actually start operating your hosting business, you're ready to start marketing your services. Remember, marketing needs to be an ongoing process if you're serious about building a successful business.
Start spreading the word about your business by listing your information in the online hosting directories: the Web Host Directory, FindMyHosting.com, CompareWebHosts.com, among others. You can find a comprehensive guide to other web site host directories at HostDirs.com.
Make sure you're listed in the top search engines and pay-per-click resources, too: Google, AllTheWeb.com, Yahoo!, MSN Search, Ask Jeeves and Overture, among others.
Don't neglect "real-world" marketing, either. Get the word out to your local business community by joining the local Chamber of Commerce, writing guest commentaries about online business for your local newspaper, advertising in area publications, and offering to be a guest speaker at the public library, community college events, Jaycees gatherings, etc. Word of mouth can often be the most effective - and cost-effective - form of advertising you can get.
How do I manage domain names and services as a web site hosting reseller?
Before you start a reseller business, ask your prospective hosting provider these questions, and make sure you’re satisfied with the answers you receive. A good web site host should provide its resellers with adequate guidance and support to give them a solid foundation for their businesses.
Most reseller-focused hosts now offer a web-based control panel that should make account setup and domain and service management relatively intuitive for resellers. Be sure to read through the documentation and FAQs that are provided with your reseller account and, if you have further questions, ask your web site host for help. Your fellow resellers can also provide guidance through the various online hosting forums.
What guarantees should I offer for my hosting services?
Whatever guarantees you make to customers, make sure you can actually deliver on them: hollow promises made only to attract new signups will come back to haunt you in the form of a poor reputation.
It's also important to research the market to see what types of guarantees your competitors are offering, and which guarantees are most important to your target customer base. The more effectively you can meet your customers' needs, the more likely you are to retain and build your customer base.
Finally, be sure your guarantees are clear, well written and easy to understand, and posted in an easy-to-find place on your website.
