2. Server Downtime
In an ideal world, you’d have 100% server uptime. But unfortunately, it’s unreasonable to expect that to be the case. In some instances, server downtime will likely occur. Since this will impact all of your clients’ websites, fixing the problem as soon as possible is vital.
Trying to prevent server downtime as far as you can is the first port of call. When choosing a hosting provider, look for service-level agreements (SLAs) that promise a certain level of uptime. It’s also important that you look at their historical record. Ideally, your partner should offer unlimited bandwidth – regardless of your subscription.
Making the right hires as a hosting reseller is also important. Ideally, you want to have an experienced technical support team to assist as soon as issues arise. If you have planned downtime for server maintenance or something similar, you should clearly communicate this with your clients. Give them enough advance notice so they can plan accordingly.
Another thing to consider is choosing a reseller hosting provider that can automatically reroute traffic if one server stops working. That way, the potential impact should be much smaller.
3. Late Client Payments
The dream for every business owner is to have amazing clients that are a joy to work with. You can definitely get to this point at some stage, but building yourself up to this level can take time. Sometimes, you sadly have to deal with difficult clients.
Rude and abusive clients are bad enough, and you should seek to stop working with those as soon as possible. However, one big annoyance you’ll likely encounter is having a client who pays late.
Ideally, you should have automatic billing for your clients. You can achieve this by choosing an online payment gateway. But even then, you may encounter issues with expired credit cards and incorrect payment details.
Start by vetting potential clients before partnering with them. Beyond that, make sure you have clear late payment policies. Making sure that you have enough cash in reserve to handle these challenges when they arise is also important.
4. Tax Challenges
Speaking of money, you’ll have to start paying taxes once your business starts making money. The amount will depend on your region and entity type; for example, sole traders typically pay employee-level income tax in many countries.
Paying your taxes on time is an absolute must. However, you should be careful not to make errors in your reporting. Doing so can result in you having to pay more money later, and an unexpected tax bill is never nice.
To ensure that you’re on top of your taxes, consider paying monthly if possible. You should also ensure that you have solid bookkeeping software that can help you keep track of your expenses. It’s also highly advisable that you hire a bookkeeper to ensure that everything is accurate; depending on your business model and jurisdiction, it might even be mandatory.
Make sure that you understand the submission dates for taxes where you live. It’s also a good idea to look at any bilateral tax agreements to ensure that you don’t get taxed twice on the same income.
Server speeds are vital for satisfying your customers, and at some point, you will probably start working with customers all over the world. When this happens, you could run into issues where some people have faster speeds than others. Needless to say, this will start irritating your clients if you don’t fix it as soon as possible.
It’s very important that you have localized servers across the world to stop this from becoming a major problem. This starts by choosing a hosting reseller that can offer this for you; without their assistance, it will be nigh-on impossible to make everything work as it should.
If you’re not sure where to start, consider offering a local service, to begin with. Once you have some clients and money coming in, you can start to think about scaling to other parts of the world. Doing this more slowly will lead to lasting results.
6. Security Threats
Completing a website security checklist is just one part of the jigsaw for keeping you and your clients safe. Servers are under constant threat from cybercriminals, and the costs – both financially and reputation-wise – can be significant. In some cases, you could land yourself in legal hot water for a breach.
Prevention is the best cure for security dangers, and to begin with, you must ensure that your hosting partner has the right protocols in place. For example, free SSL certificates should be non-negotiable.
Since outdated software is a common security breach cause, you should ensure that you partner with a host offering automatic updates. Firewalls are another key consideration.
7. Migrating Client Websites
Being a successful hosting reseller is about satisfying clients without websites and those who already have one. In some cases, you may have to migrate an existing website to your servers. This is a highly technical process, and you should ensure that you do everything to make it as smooth as possible.
First, you need to pick a host that offers unlimited migrations 🙌. The process to migrate a WordPress site is also different from other platforms, so it’s a good idea to understand the differences between each one.
Make sure that you’ve hired technical experts to help you migrate client websites, and be sure to back everything up just in case. It’s also very important that you’re transparent with the customer throughout the process and limit the amount of disruption where possible.
8. Client Cancelations
The ultimate goal for all business owners is to have happy clients who’ll continue to partner with us for the long run. But over time, some will naturally come and go. This could happen for multiple reasons, and while you can try convincing them to change their mind, it’s important that you move on from the situation.
Firstly, you should set a clear outline for how much money you need to sustain your business and live in the meantime.When you have a base number, increase this by at least 30% so that you have more of a buffer. It’s also important that you diversify your client income to minimize the impact if one drops off.
Besides preparing financially, it’s also a good idea to prepare questions that you’ll ask the customer when they end their contract. Ask them why they’re leaving and if they have any feedback for you. When you have this information, you can then improve your products and services; doing so should reduce your churn rate.
9. Issues With a Client's Website
While you’re mainly responsible for the backend aspects when you’re a hosting reseller, assuming some responsibility over your client’s website is a good idea. With this in mind, it’s important that you think about the potential things that can go wrong and prepare for these accordingly.
For example, it’s possible that a client’s website could encounter adversities during a software update. Other problems that impact the site could also arise; in these instances, it’s important that you’ve backed up each website on your server.
Ideally, you should look for a partner with free backups included. You can, if you need to, also pay for backups; set these to occur automatically each day.
