Low Risk, High Reward: How to Maximize Earnings as a Cloud Reseller

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Rachel Burstyn · Nov 17, 2024 · 7 minute read

If you’re looking for a business idea with low upfront investment and unlimited earning potential, have you considered becoming a cloud reseller?

If you’re good with people, but you want someone else to handle the hardware, reselling cloud services could be a smart business move for you. 

Cloud resellers are the liaison between providers (typically IaaS companies like Kamatera) and customers (cloud server end users). A reseller purchases cloud infrastructure and services from a provider, then resells the services to their client base, under their own label or brand and with their own customer service. That means you’ll be generating ongoing revenue from your customers via monthly, annual, or multi-year fees.

The ideal candidates for resellers are digital agencies, web and UI/UX designers, marketing and PR firms, and every entrepreneur who wants to establish a profitable and flexible online business. 

Cloud computing is on the rise as remote work, AI, and the enormity of IoT data aggregation push cloud adoption to higher heights every year: 

Inside the cloud ecosystem, Infrastructure as a Service (IaaS) is growing even faster than its cousins PaaS or SaaS, with a 26.6% increase in spending projected for 2024, reaching a total of $182 billion. (Auvik). The demand for IaaS services is on the rise, as more SMB businesses and independent contractors adopt cloud solutions. Though IaaS solutions can be complex to implement and manage, cloud resellers have the expertise and specialized knowledge to help businesses navigate these complexities.

Forecast: Cloudy with a Chance of Massive Profits

Here’s why this business idea is a guaranteed win for everyone: Your customers already trust you. You can easily expand your relationship with them by offering additional services that they already need. Here are just three of the many advantages of reselling cloud services:

1. Recurring revenue: Migrating a cloud server can be expensive and complicated, so cloud users usually tend to stay where they are. So while you avoid the considerable capital costs of setting up your own cloud servers, you’re also setting up a recurrent income stream. With the good service and attention you give them, your customers are going to be motivated to keep their business with you.
   
2. Server scalability: Scalability enables resellers to target a wider range of clients, from small Forex traders to large enterprise companies. And because you only pay for the resources that your clients actually use, you’ll see better profit margins. You can also respond instantly to your clients’ changing needs with an automated tool, ensuring optimal performance during usage spikes.

3. Flexibility in service offerings: As a cloud reseller, you can offer a wide range of cloud services like remote desktop hosting, diagonal scaling, and load balancers. You can also give your clients access to the most popular open-source apps and services, making it easy for them to configure their server exactly the way they need it.

The Secret to Reseller Success: Excellent Marketing 

Establishing a profitable business around cloud reselling hinges on effective marketing. Your success depends on convincing a wide audience that you’re a reliable provider offering tailored services with dedicated support. Here are some strategies that have worked the best for Kamatera’s resellers:

Specializing will allow you to target a niche segment of the market. You can offer specialized services to your customers that will appeal to a certain demographic. For example: enhanced security features like military-grade encryption and daily malware scans included in all packages, or e-commerce optimized hosting with built-in scalability for seasonal traffic spikes. Or be the eco-friendly option with carbon-neutral servers, with transparent emissions reporting powered by renewable energy sources. Or specialize in helping IT departments migrate their data and applications from legacy systems to a cloud platform. The possibilities are nearly endless.

You can significantly boost your income by bundling your cloud offerings with website development and design services. Your packages could include basic hosting with a simple website template, advanced hosting with custom website design, and premium hosting with full-scale web development and ongoing maintenance.

To gain credibility, host or sponsor local tech meetups and provide live demonstrations of how to spin up a server is an excellent way to establish yourself and connect with potential clients. While there, you can build relationships with other tech professionals for potential partnerships or referrals.

Building an e-mail subscriber list and sending them regular newsletters with valuable content is another great marketing strategy for the long term. Include a mix of educational articles, industry news, tips and tricks, and special offers to get the best open and conversion rates for your e-mail newsletter.  

How to Overcome Cloud Reselling Obstacles 

While it holds great opportunities, the cloud industry can be daunting, because the technology is highly sophisticated and rapidly evolving. Here are some ways to feel more fluent in cloud-ese so you can feel confident with your clients: 

Leverage vendor resources: Kamatera offers a knowledgebase of how-to articles, as well as extensive documentation and training materials.

Lean on your team: If possible, hire or partner with technical experts to fill the gaps in your technical knowledge.

Invest in learning: There are tons of great online courses, webinars, and industry certifications that will help you learn the vocabulary and all the abbreviations.

Why Choose Kamatera?

If you’re going to trust your business (and your customers’ business) with a third party, you want to use someone who has experience and expertise. With Kamatera, you’ll be working with a company that has been providing cloud solutions since 1995. 

As a reseller, you’ll be purchasing Kamatera’s high-level servers at wholesale rates and reselling them to your clients at your own prices. Kamatera also provides additional discounts and promotional offers that you can use to reduce your own server costs.

Let Us Handle the Hardware

We provide an ideal solution for companies that want to create their own website hosting business without having to deal with infrastructure setup costs and hardware maintenance. Our technical team can support even your most technically complex users. We manage all the infrastructure so your clients receive top-notch technical support with 99.95% uptime.  Your customers will benefit from using our enterprise-grade network solutions while you focus on managing the relationships.

Full White Label with API

The reseller program includes the ability to white label Kamatera’s offerings with your branding and logo and control your pricing and billing. This allows you to offer your clients a robust control panel, complete with your distinctive branding—from the logo to custom domain settings.

Save Money as You Scale

With Kamatera, you’ll receive discounts on the servers you resell as you increase the volume of your customers, enabling you to become more profitable as you grow your business. Our flexible monthly fee scale is based on your configuration, so you’ll only pay for what you need. We’ll never require you to pay upfront for a package if you don’t have enough customers to justify the cost.

Here are some other benefits that Kamatera offers to resellers:

Custom domain configuration: Set up your reseller environment on your domain, presenting it as an extension of your business.

Dedicated IP addresses: Maintain control and ensure reliable service with dedicated IPs for your clients, directly managed through your White Label dashboard.

Customizable billing and service tiers: Tailor your pricing and service offerings to meet the specific needs of your clients, leveraging Kamatera’s scalable infrastructure.

Conclusion

Becoming a cloud reseller could be a lucrative avenue for those seeking a low-risk, high-reward business opportunity. You can ramp up your services by specializing in a targeted niche, deploying effective marketing strategies, and bundling your offerings with web design or development services. With the information we’ve provided, as well as the personalized service you’ll receive from our account managers, you can position yourself as an expert advisor, helping businesses of all sizes harness the power of the cloud.