Develop Digital Products
While reseller hosting is lucrative, you are capped at the number of clients you can serve. You can build a big team, but you should ask whether you want to do that. Moreover, you only have 24 hours in your day; continuous scaling can become difficult beyond a certain point.
Digital products are one of the most common routes for online service providers and creators, such as freelancers, to diversify their income. Once you’ve launched your products, people can buy them even when you aren’t present at your computer. The earning potential is limitless, and it gives you more flexibility in life. For example, you can take longer vacations without worrying about your income taking a hit.
When creating digital products, you’ll need to think about what will best serve your audience. For example, new clients may benefit from having complete courses and guides on how to grow their site traffic. If you serve a specific niche, you may also want to launch eBooks and courses with blueprints on how to grow within that market.
You’ll need a place to host your digital products. Online marketplaces do exist, but you need to consider the downsides – such as limited customization and high fees. For scalability and flexibility, setting up your own online store is a good idea. You can use plenty of WooCommerce plugins and extensions to build your shop in the exact way you want.
If you choose to create your own online store, pick a hosting provider with the bandwidth to offer such a service.
Offer Additional Services
It’s very easy to sometimes get trapped in the idea that you only have to offer reseller hosting. This, however, is not true. All of your clients will have other issues in their business that need solving, and if they don’t work with you, they’ll need to spend their time and energy trying to find someone else. Beyond this being time-consuming, it also means they have to split their attention in more ways.
If you have a unique extra skill, you can upsell this to existing customers. For example, you could offer search engine optimization (SEO) services. Improving SEO will make your clients more visible to their target audience, which can result in more sales and bigger profits, making this valuable.
You could also offer services that make their website more trustworthy. For example, great design can be the difference between a new loyal audience member and someone leaving for a competitor.
Rather than guessing what people might want, sit down and speak to them. You’ll often get the answers you’re looking for, and you can go from there. If you don’t have the skills yourself, you can always hire skilled contractors. These are some of the best reseller hosting hires you can make.
Delve Into Affiliate Marketing
Affiliate marketing can be a lucrative source of income, and some businesses out there have perfected making a full-time living just through this alone. In short, affiliate marketing involves someone promoting a product or service; when a user buys via their link, they earn a commission.
As a hosting reseller, you can look at affiliate marketing from both angles. First and foremost, you can sign up for affiliate programs. When doing so, make sure these are products and services you already use; for example, you may find one for some of your WordPress plugins.
Once you’re established, you can also set up an affiliate program. In this instance, you’ll pay others to promote your services and products. When someone buys through their link, you will pay them a commission.
Never promote products and services you don’t use, and remember that affiliate marketing takes time to get started. Once the system is set up, though, it’s a reliable income stream. Reading the top affiliate marketing mistakes to avoid beforehand is a good idea.
Grow a Newsletter
Email marketing may seem archaic, but even to this day, it’s one of the most important channels you can set up. You own all of the traffic, and the people who subscribe to your newsletter are often your most loyal fans.
But how does growing a newsletter offer extra income streams?
Well, there are multiple ways.
Once your newsletter has 500 engaged subscribers or so, you can start seeking sponsorships. This is a low-friction source of income that can provide extra money while also offering value to your audience.
On top of that, you can use your newsletter to promote your products, services, and affiliate links. By doing this, you’ll have a much more robust business in the long run.
When building a newsletter, aim to send an update at least once per month. Building a lead magnet, such as a free checklist, can help you incentivize people to sign up. Your first few newsletters probably won’t be good, but you’ll naturally improve as you publish more.
Start a YouTube Channel
Do you enjoy being in front of the camera? Starting a YouTube channel could be an amazing way to diversify your income as a hosting reseller. You can publish free resources that’ll help your audience build the best possible business and show how your services will enable them to achieve these results.
YouTube can offer several income streams. For example, you could – once you reach the minimum threshold of 1,000 subscribers and 4,000 watch hours – start generating ad revenue. Beyond that, you could get people to sponsor your videos and promote affiliate links.
If you’ve set up some digital products, YouTube can be a great way to promote these, too. When launching a YouTube channel, take your time to create high-quality content. You don’t need expensive equipment; you can start with a microphone and smartphone. However, the information you provide must be top-notch.
Understanding Which Income Streams Work Best for You
Each of the income streams mentioned in this article has the potential to make you a good amount of money. However, the ones you choose will depend on multiple factors.
Most importantly, you need to consider your skills and interests. You will not build the most effective additional income streams if you don’t like the process. Rather than running the risk of giving up too easily, it’s much better to focus on one or two that you actually want to stick to.
If you’re unsure, trying lots of different things is the best way to find out. Do each one for a couple of weeks and figure out which ones you like the most. You can also journal and write pros/cons lists to determine the income streams that would meet your needs the best.
How to Know When It's the Right Time to Diversify Your Income
Rather than rushing in and doing multiple things at once, it’s a good idea to diversify your income once you have matured your core sources of revenue. As a new hosting reseller, you should focus all of your attention on building the best possible service for your customers.
Once you’re consistently making more than enough money to cover your expenses, and you’ve got good client retention, you can focus more energy on longer-term income streams. This is also possible when you have hired the right people in your business to take a step away from the active side of things.