Are you a web developer, designer, or digital agency looking for a new revenue stream or ways to enhance your services? Reseller hosting could be a viable option for you.
We all know the internet runs on websites. Those websites need a home; you can use that as a viable business model. Reseller hosting allows you to purchase a slice of the internet, which you can then resell as a home for potential websites under your brand.
It’s a good way to bolster your product resume and generate additional income without owning data centers or managing servers. Read on, and we’ll tell you how it works and answer several important questions.
What is reseller hosting?
At its core, reseller hosting involves purchasing a purpose-built hosting package and dividing it into smaller packages to sell as hosting space to your customers. In effect, you rent server resources and space to resell under your own brand.
It’s a good middle ground if you want to run a hosting service, but don’t want to invest in costly infrastructure. You set up your plans, handle customer support and billing, while the provider does all the heavy lifting in the background. Consequently, there are several big draws of reseller hosting:
Low startup cost: Reseller hosting eliminates the need to invest in expensive hardware and software. It’s an affordable entry point for starting a hosting business.
Recurring revenue: Once you set up your reseller services, you enable an additional revenue stream for your business.
Compliment to your services: Finally, it’s an excellent companion for web agencies, developers, or designers offering a core set of services.
Reseller hosting is the gateway to becoming a fully-fledged hosting provider. Many successful companies began their journey as resellers and have since scaled up to their current state.
How to get started with reseller hosting
Becoming a reseller host can be a straightforward, exciting process. While it's a big step to undertake, with the right provider at your side and these few steps to follow, you’ll see how easy it can be. Spin up your own hosting brand today. No racks, no jargon, just revenue.
Find the right provider
It all starts here: purchasing a bulk hosting plan from a provider. But what should you look for? Over the years, we've noticed that many beginner resellers focus on the wrong things, mainly the price.
Cheap is not always best for so many reasons that it would take a whole other blog post to explain them. Luckily, we have precisely that. Click here to read about the pros and cons of cheap reseller hosting. The discussion primarily revolves around the quality versus price balance and how a low price can seem attractive but be a trap.
Now you know a cheap solution might be more trouble than it’s worth. Perfect. What’s next? Here’s a neat little list of things to look for:
White-label branding: You want to look like a professional host, and white-label branding can help you achieve that goal. Providers offering this option allow you to apply your own branding to your plan.
Management tools: Most reseller hosting plans offer a control panel or dashboard. cPanel and WHM are the most common examples. They make it easy for resellers to create and manage hosting accounts.
Customizable hosting plans: This one is twofold. You, as the reseller, should be able to create a wide variety of plans for your customers. However, you should also be able to scale your own plan as your client base expands.
Reliability: You want stable uptime (at least 99.9%) and infrastructure. If your plan is down, your customers’ accounts are also down.
Strong, reliable support: You’ll rely on your provider’s support team to resolve any issues your customers may come across. The team's quality, availability, and speed should be the last thing you compromise on.
We discussed finding the right provider at length because it’s a critical step. There’s more to say on the topic, so head to our blog post about what makes a great reseller host. In it we expand on everything discussed so far.
Your entire business hinges on the quality of service you are getting. Since you’re reading this, you’re at the perfect place for a reliable and affordable reseller hosting plan. You can find our offerings here, where we do not compromise ourselves.
Selling under your brand
Once you’ve chosen your reseller hosting provider, it’s time to set it all up. It might initially be intimidating, but it’s much easier than it looks. Modern systems allow resellers to have a business up and running in just a few hours (if not less).
Naturally, the steps to getting to that point will differ from one provider to another. At hosting.com, we use cPanel and WHM for our plans. They are intuitive, have many useful features for resellers, and offer the flexibility and freedom they need.
Nonetheless, these are the steps you must take to lay a solid foundation for your business.
Define your target market: Identify your ideal customers, their budget, and requirements. Then, tailor your hosting packages and marketing efforts to those needs.
Create your hosting packages: You can’t have your hosting business without some plans for your customers to purchase. Research what resources others offer at what prices, though! You want to be competitive.
Set up a billing and management system: You must configure a billing and account management system. Fortunately, many reseller providers offer solutions that make the process straightforward.
Consider additional services: Hosting is not the only thing you must sell. You can add SSL certificates, email hosting, or website builders as optional upgrades.
Start marketing: You want customers. The best way to get them is to tell the internet you are a hosting provider. Use email marketing and search engine optimization (SEO) as a starting point. If you have the budget, invest in some paid ads.
It will take some effort, but with your host’s systems and their help, you should be ready quickly. Block out one afternoon, follow our our Reseller Hosting Quick Start Guide, and start invoicing bydinner. If at any point you have questions, our expert team is here to help.
When to consider reseller hosting?
Reseller hosting is an excellent choice for anyone who wants to learn about hosting or improve their service resume. It’s affordable, scalable, and a great entry point to the hosting industry. It’s a great option for aspiring entrepreneurs and established companies alike.
If you are any of these, consider adding a hosting service.
Web design and developer companies: Offer hosting services alongside your design and development work. That way, you can have a one-stop solution for clients. Website plus hosting!
Digital marketing agencies: If you are a marketing agency, consider enhancing your value proposition by including hosting as part of your website management services.
Entrepreneurs: Reseller hosting can be a launchpad for anyone interested in starting a hosting business without the heavy upfront costs.
Freelancers: Similar to our first point, freelance developers and designers can bundle their services with hosting to keep everything centralized.
In reality, though, there’s no limit to who can resell web hosting services. From student freelancers to 40-person agencies, 12,000+ newcomers launched reseller brands last year alone.
Anyone who wants to learn about hosting and put their time and effort into it can become a reseller. Whether you bill $40,000 a month or just built your first WordPress site, recurring hosting income is on the table, reseller hosting is for everyone!
The business of hosting starts here
If you’ve ever considered adding a steady stream of recurring income to your business model, reseller hosting is a solid idea.
With its low bar for entry and provider handling all the technical heavy lifting, you can devote yourself to growing your business and providing stellar service to your clients. And that’s the thing about reseller hosting: many people think you have to do all this technical stuff on your own.
That might have been the case long ago, but with the technology and systems we have today, it’s easier than ever. Yesterday you coded sites; today you could be their landlord. Tech makes it that simple.
FAQ
Do I need technical knowledge to start reseller hosting?
Not necessarily. Your hosting provider manages the server infrastructure, so you don’t need to be a system administrator. However, having a basic understanding of hosting and websites will help you support your clients.
Can I set my pricing for reseller hosting plans?
Yes! One of the most significant advantages of reseller hosting is deciding how to package and price the hosting you sell to your clients.
What’s the difference between reseller hosting and affiliate hosting?
With reseller hosting, you sell hosting under your brand and manage your clients. With affiliate hosting, you send people to another hosting company and earn a one-time commission.
Will my clients know I’m a reseller?
Not if you choose a provider that offers white-label features. Customers will see your branding on dashboards, emails, and invoices, not the provider’s.
How much does reseller hosting cost?
Costs vary by provider, but plans usually start at an affordable monthly rate. Since you can divide resources among multiple clients, it often pays for itself after just a few customer accounts. Check our pricing page for more information.
Can I upgrade my reseller hosting plan later?
Yes. Most providers offer scalable reseller plans. As your client base grows, you can easily upgrade to handle more accounts and traffic.
Who handles server maintenance and security?
Your hosting provider handles server hardware, uptime, and security patches. You focus on customer support, billing, and managing hosting packages.
