As the #1 reseller hosting company, we’re uniquely placed to answer some of the most common questions about selling web hosting.
What is reseller hosting? Is it difficult? is it profitable? What should I look for in a reseller host?
Keep reading to find our take on all these questions, and more.
What is reseller hosting?
Reseller hosting is a type of web hosting service where an individual or company purchases hosting resources from a web hosting provider and then either sells those resources to other customers (e.g. using their own a web hosting brand) or offers them as an extra or added-value service (e.g. as a web design agency).
The reseller essentially acts as a middleman between the web hosting provider and the end-user customers.
Some resellers offer the hosting services as their own, under a custom domain name and brand. This is called white-label web hosting.
Other resellers simply use the web host’s infrastructure to host client sites with out any aspiration of behaving like a host themselves.
Reseller hosting typically includes a control panel for the reseller to manage their customers’ hosting accounts, create and modify hosting packages, and set pricing for their services.
Good quality reseller hosting also provides a web hosting control panel for the end user to manage aspects of their service as well.
Is reseller hosting profitable?
Whether reseller hosting is profitable depends on a number of factors, such as the reseller’s pricing strategy, marketing efforts, and ability to manage their hosting environment and customer relationships effectively.
If a reseller can offer competitive prices combined with high-quality hosting services, it is possible to attract a significant number of customers and generate a steady stream of revenue. Reseller hosting can be a particularly effective source of recurring revenue for designers/developers.
Resellers are in a great position to benefit from economies of scale, as they purchase hosting resources in bulk from their provider and can distribute those resources among their customers.
However, hosting is a highly competitive market, and resellers who want to act as a web host will need to invest significant time and resources into marketing, customer acquisition, and technical support to differentiate themselves.
For more information, here is a dedicated article on the profitability of a hosting resell business.
How do I start reselling hosting?
Choose a web hosting provider that offers reseller hosting plans and has a good reputation for reliability, uptime, and customer support.
Once you have chosen a web hosting provider, purchase a reseller hosting plan that meets your needs and budget. The provider will provide you with access to a control panel that you can use to manage your hosting accounts and customers.
Customize your branding, website, and control panel with your own logo, colour scheme, and domain name. This will help you to establish your own brand identity.
Here is am article that will help you with brand building for your web hosting company.
Create hosting packages that you can offer to your customers, including features such as disk space, bandwidth, email accounts, and other resources. Most hosts offer multiple packages at different price points to meet the needs of different customers.
Provide customer support to your customers, including technical support, billing support, and other assistance as needed. You can support customers through various channels such as email, phone, WhatsApp or live chat.
What is the difference between shared hosting and reseller hosting?
The main difference between shared hosting and reseller hosting is that with shared hosting, you are typically provided with a single hosting account and limited resources that you can use to host your website.
With reseller hosting, you can create multiple hosting accounts and sell hosting resources to other customers.
Reseller hosting includes additional features and tools that are not available with shared hosting, such as the ability to create custom hosting packages, set your own pricing, and apply your own branding to your customers’ control panel.
What is the profit margin for reseller hosting?
The profit margin for reseller hosting vary widely depending on several factors such as the pricing strategy, customer acquisition costs, and the cost of hosting resources.
In general, reseller hosting is a profitable business if done correctly. The profit margin for reseller hosting can be as high as 50% to 100% or more, depending on the pricing strategy and the cost of hosting resources.
For example, if you purchase a reseller hosting plan for $50 per month and can create 10 hosting accounts at $10 per month each, your monthly revenue would be $100, which represents a profit margin of 50%.
What are the benefits of reseller hosting?
Reseller hosting offers several benefits to individuals or businesses who are looking to start a web hosting business or to offer hosting services as an added value to their clients. Some of the key benefits of reseller hosting include:
- Cost-effective: Reseller hosting plans are often more cost-effective than purchasing dedicated hosting resources, as resellers can purchase hosting resources in bulk and distribute them among their customers.
- Custom branding: Reseller hosting allows you to offer hosting services under your own branding and domain name, giving you greater control over your brand identity and customer experience.
- Flexibility: Reseller hosting plans often offer a greater degree of flexibility than shared hosting plans, allowing you to create custom hosting packages and set your own pricing based on the needs of your customers.
- Additional revenue streams: Reseller hosting can provide an additional revenue stream for web designers, developers, or other IT professionals who wish to offer hosting services to their clients.
- Scalability: Reseller hosting plans can be easily scaled up or down based on the needs of your customers, allowing you to grow your hosting business as your customer base expands.
- Technical support: Reseller hosting providers often offer technical support and assistance to help you manage your hosting environment and provide support to your customers.
Is selling web hosting a good side hustle?
Selling web hosting can be a good side hustle for individuals who are looking to earn extra income or to start a small business. Reseller hosting, in particular, can be a convenient and cost-effective way to start a web hosting business as a side hustle.
Reseller hosting plans often offer a range of features and tools that allow you to create custom hosting packages, set your own pricing, and offer technical support to your customers.
This can help you to differentiate yourself from your competitors and to provide a high-quality hosting service to your customers.
As a side hustle, web hosting can offer flexibility and the ability to work from home or remotely, allowing you to balance your other commitments such as work or family responsibilities.
Additionally, web hosting can provide an additional source of income and a pathway to grow your business over time.
It is important to note that web hosting is a very competitive market, and you will need to invest time and effort in order to succeed.
Who uses reseller hosting?
Reseller hosting is used by individuals or businesses who want to offer web hosting services to their clients or customers under their own brand name. Some of the common types of users who use reseller hosting include:
- Web designers and developers: Web designers and developers often use reseller hosting to offer hosting services to their clients as an added value to their web design or development services.
- Entrepreneurs and small business owners: Entrepreneurs and small business owners may use reseller hosting to start a web hosting business and offer hosting services to their customers as an additional revenue stream.
- IT professionals: IT professionals such as system administrators, network engineers, and web administrators may use reseller hosting to offer hosting services to their clients or to their own organization.
- Online marketers: Online marketers may use reseller hosting to host their own websites or landing pages, or to offer hosting services to their clients as part of their online marketing services.
What should I look for in a reseller host?
The first thing you should look for is whether you’re on the 20i website or not. Other than that, key features include:
- Reliability and uptime: Look for a hosting provider that offers reliable hosting resources and a high uptime guarantee to ensure that your websites and those of your customers are available and accessible to visitors.
- Scalability and flexibility: Choose a hosting provider that offers scalable and flexible hosting resources, including the ability to add or remove hosting accounts and allocate resources as needed. Out autoscaling cloud hosting is a great example.
- White-label: Look for a hosting provider that allows you to white-label your hosting services, so that you can offer hosting services under your own branding and domain name.
- Customer support: Choose a hosting provider that offers 24/7 customer support, including technical support, billing support, and other assistance as needed.
- Security and backup: Look for a hosting provider that offers robust security features such as SSL certificates, firewalls, and malware scanning, as well as regular backups to protect your websites and data.
- Control panel: Choose a hosting provider that offers an intuitive and user-friendly control panel that allows you to manage your hosting environment and your customers’ accounts easily.
- Pricing and billing: Look for a hosting provider that offers transparent and competitive pricing, as well as flexible billing options such as monthly, quarterly, or annual billing.
Picking a host that ticks all these boxes will go a long way to ensuring you select a reliable, scalable, and flexible hosting provider that offers the features and support you need to build a successful reselling hosting business.