The days are long gone when organisations could continue operating so long as they only provided a fundamental group of services. These days, for agencies to survive the “slow season” and keep their advantage over the competition, they need many sources of income.
Learning how to resell web hosting is a potential new income stream that design, development and marketing businesses might establish for themselves. Reseller web hosting is an excellent method for generating recurring money and ensuring that the agency can take care of the hosting component of the projects on behalf of its customers.
The reseller sector expanded in tandem with the rise of the freelance web design industry. Web designers are constantly seeking the finest dedicated servers for web hosting to give their customers, and resellers may make a good living by reselling hosting space. Someone who can provide companies with high-quality hosting is an essential aspect of the business ecosystem.
If you’ve been considering creating your own resell web hosting company, read to learn more.
What Exactly is Reseller Hosting?
Reseller hosting is a business model in which a web hosting provider leases hard drive space and bandwidth to another (small-to-medium-sized business). This business in turn rents the space to third-party organisations. Reseller hosting allows you to give hosting to your customers as if you were the web hosting firm without having to create, run and maintain its web hosting infrastructure. Furthermore, this model is common for prospective entrepreneurs who want to establish their own web hosting company or for present web developers and designers who want to expand their brand offerings.
Reseller hosting may seem challenging, but it isn’t. The benefit of applying reseller hosting is that you do not have to maintain your hardware or hosting software. Good resell web hosting providers offer specialised reseller packages that can quickly get things up. So, you would only need to set up an account for each new customer.
Typically, it is just creating a new account, deciding how much disc space or bandwidth to allocate, and proceeding from there. Some web servers may charge a flat monthly price as well as a service fee. Some will not offer a set rate, instead charging on a pay-as-you-go basis. Reseller hosting allows you to generate money in the internet hosting industry whether you are a web designer, developer or just someone who dreams of running their own web hosting company.
Six Steps to Learn How to Resell Web Hosting
To get started with reselling, what actions do you need to take? Let’s begin from the beginning and go step-by-step through how to launch a hosting reseller company.
Step One: Create a Business Plan
A well-thought-out business plan should serve as the foundation for your company. You are likely familiar with setting goals if you have tried launching a company. Usually, establishing specific business objectives and specifying how you would bundle your services in order to have the most successful web hosting reseller company.
A good business plan will contain all the information you need to lead your development, such as the structure of your company, the services you want to provide and the issues your firm intends to answer. If you haven’t previously created a firm (such as an LLC or a GmbH), you should execute your work under the auspices of the corporation after you’ve defined a plan.
Step Two: Determine your Target Audience
Now that you are already familiar with your company’s specialisation, let’s proceed. The next step is to identify the consumers most likely to become customers. Determine the kind of customer you desire to serve, such as web developers, internet business owners, designers or bloggers. When you have determined your target demographic, you can choose the most suitable reseller hosting plans to meet their needs.
Once you have this information, it is time to outline your business objectives and determine how you want to expand your client base and company. Based on this information, you can choose a reseller hosting plan from a parent hosting business.
Step Three: Choose a Host
The selection of your parent hosting firm is an essential component of your overall business objectives. When searching for a hosting provider, the features provided by your host firm must correspond to those that you want to deliver to your clientele.
Conducting in-depth research is one strategy for choosing the most suitable host for your event. Some of the top reseller hosting firms include:
$107.88 per year
GoDaddy is an online behemoth with impressive features. This firm’s servers are dependable, therefore you can be able to supply your consumers with exceptional uptime and speed. The hosting provider also gives you the ability to personalise your hosting plans and brand your products and services by adding your company's logo.
GoDaddy provides cPanel as well as free WHMCS. You may create a shop with your business name, establish your margins and resell names to make additional money. You’ll also get extras like Microsoft Office 365 making it a worthwhile alternative to explore. The enhanced plan of this hosting firm includes 4 GB RAM, 2 CPUs and 90 GB storage, and begins at $132.69.
$11.99 per month
A2 hosting is among the quickest hosting resellers. This hosting reseller has lightning-fast website load rates and a turbo speed function. You may also rely on skilled 24/7 assistance to help with technical questions from your customers.
A2 Hosting guarantees 99.9% uptime so that you may provide excellent service to your clients. This firm enables users to manage their accounts using WebHost Manager (WHM). You may also use your branding and assign server resources as you see fit. The Bronze plan is priced at $11.99 monthly, and it comes with up to 40 customer accounts, 30 GB of storage space, 400 GB of data transmission and the Blesta client administration software
$15.39 per month
InMotion Hosting provides ample amounts of disc space and significant bandwidth magnitudes, both of which can be customised into packages that are appealing to customers. You also can go with a VPS (Virtual Private Server) resale package, which provides you with the advantages of managed hosting and additional eCommerce tools.
Since each of InMotion Hosting’s reseller solutions is white-labelled, you are free to use the branding and logo of your firm. In addition, you will have access to WHMCS and WHM, as well as a domain reseller account, so that you may generate more cash. This hosting reseller has an R-1000S package, which includes 80 GB of storage, 25 cPanel accounts and 800 GB of bandwidth, and is priced at $15.39. They also have plans for VPS resellers which begin at $46.64 per month.
$9.99 per month
If you are seeking WordPress hosting, SiteGround can be the best option. This supplier is regarded for providing excellent customer service, so you can depend on it if you get stuck. SiteGround provides an easy-to-use client area dashboard. Additionally, you will get access to more than 30 development tools to help you run your business. However, to distribute resources and use your own branding, you must choose one of the more expensive options.
$11.99 per month
Bluehost provides Linux and Windows hosting options under the Reseller Club brand. You may resale over 800 different items, including limitless cPanel accounts of white-label. This firm’s reseller plans include the Web Host Manager Complete Solution for customer billing.
$19.95 per month
HostGator is a good alternative if you need a lot of freedom. This service guarantees 99.9% uptime, provides premium reseller support and includes a free WHMCS licence with every package. You also get your customised WebHost Manager control panel and a variety of development tools.
For more information and a list of great providers you can always this article.
Step Four: Set up your Business
Since you already have your framework, you can continue configuring the server and the services now. Create an uncomplicated and intuitive website for the people who could end up becoming your customers. You will acquire your server, install InterWorx and WHMCS, add your packages and connect payment processors (such as PayPal or authorize.net).
You can also link WHMCS to the server control panel for automation. Or create your knowledge base with answers to technical support questions, and more. Also, you can provide your customers with the appropriate call-to-action buttons. That way they may purchase your services with only one click. Also, ensure that your website is protected, has a reputable SSL certificate and is equipped with reliable billing mechanisms.
The pricing system is also an essential consideration for your business. You will run a loss either by pricing your items or bundles at an exorbitantly high cost compared to your competition or by setting extremely cheap rates for them. Either you will find that you have fewer consumers, or you will discover that your business is losing money rather than making it. Keep your pricing within a standard range while setting them up so that you can attract clients and yet turn a profit. And after you’ve made a name for yourself in the market, you always have the option of raising your rates.
Step Five: Ready for Launch
In the same way as any other company, you need to take your reseller hosting firm online. You can now begin selling your company, given that the server is in a state where it may be resold. Ask new and current clients about the hosting services they need, and highlight the benefits of your products and services.
If it makes sense for your customers, consider adding a Private VPS Parent to your business model. As a result, this would allow customers who need an entire server to quickly and easily create one from your online store. You might want to reconsider if it doesn’t make sense for your customers.
Step Six: Promote your Reseller Business
One of the most important things you can do to bring in new consumers is to market your company. When you already have a website up and running, add pertinent information so it can be found via search engines. If you want to improve your indexing and search engine ranks, you have three options to build the most successful hosting reseller company.
To begin, you can select paid marketing strategies, such as launching a sponsored advertising campaign directed at your ideal customers. Two, you can market your reseller hosting company naturally by producing material optimised for search engines like Google on your website and in your various social media channels. Third, you have the option of selecting paid solutions in addition to organic ones, giving you the very best of both worlds. If necessary, bring on a marketing professional to assist you.
How to Choose your Reseller Hosting Partner?
If you have your company strategy in place, then the most important thing for you to do is choose the reseller hosting package that is most suitable for your requirements. When searching for a web hosting provider that offers reseller plans, be sure to check for the following features before making a final decision:
- Does the hosting provider offer packages that can accommodate your financial constraints and specific resell web hosting requirements?
- Will they be able to offer an upgrade route for your reseller web hosting service in the event that your company expands and needs a newer version?
- Does the reseller have a good track record when it comes to reseller hosting?
- Does their software include a user-friendly interface that you can use to manage your reseller account?
- Is there a guarantee that you can get your money back if you aren’t happy with the service?
- Do you have access to the technical help that you need?
- What kind of assistance is there, phone, email or live chat?
The selection of a service is often determined by one’s preferences and points of view. Using this checklist should assist you in locating a reseller host that may supply the answer you want.
Let’s Look at the Costs Likely to be Incurred by your Resell Web Hosting Firm
Especially in the beginning, a new firm needs effective cost management. The number of your first customer accounts and the kind of clientele you want to cater to will determine how much money you have to put into reseller web hosting.
In its most basic form, a website requires a domain name (which costs around ten dollars per year) and web hosting, neither of which represents a significant financial outlay. Nonetheless, other components will likely be required. The following is an approximate range of the costs that your firm may incur:
- Registration of domain names costs between $10 and $15 annually.
- Accounts for reseller web hosting cost from $15 and $400 or more.
- Website design template available for a one-time payment of $100.
- WHMCS licencing fees range from $16 to $40 per month.
- cPanel/WHM licence ranges from $200 to $425 yearly.
- One-time payment of about $50 for a domain reseller account.
- Software for customer service and assistance ranges from $0 to $300 per month.
Although most introductory reseller programmes are on shared servers, you may often resell web hosting resources on more costly VPS or dedicated server plans. As a master reseller, you may even offer reseller hosting packages. Furthermore, some providers may utilise an alternate reseller hosting method in which you can buy individual shared hosting accounts for resale, buy credits that can be redeemed for different services or take a percentage discount from a portfolio of choices.
Should you Venture into the Reselling Business?
A reselling business is a lucrative business opportunity. Reseller hosting does not need you to purchase all of the necessary resources on your own. To put it another way, investing in long-term people and infrastructure is not yours but someone else’s responsibility. The rise of the digital age has produced a dynamic business environment, with hundreds of opportunities to enter new markets and be recognised by existing ones.
If you have thought of starting your own resell web hosting company, then the option to do so via reseller hosting is ideal. Reselling business makes it possible for you to expand your own company and have several sources of revenue. You will be in a better position to win new clients and bring all of your operations under one roof if you become a reseller of web hosting services and give serious consideration to doing so. In addition, you have a fantastic potential to establish yourself as a full-service provider in the hosting and internet arena, a growing market.
Four Main Types of Reseller Hosting
Not all hosting options are created equal, and each offers unique benefits depending on what you want to accomplish with your website. If you can figure out which category best fits your requirements, then you’ll be one step closer to selecting the right hosting company. So, let’s look at the four main types of reseller web hosting.
Shared Web Hosting
With this type of hosting, you share a server with other users when you utilise shared hosting. The same pool of allotted resources, such as bandwidth, storage and processing power, is available to all websites on the server.
VPS Web Hosting
Hosting on a virtual private server (VPS) offers web hosting space and resources exclusively yours. The majority of VPS hosting companies provide full root access so that you may set up your operating system and apps. What you do with your account won’t have an impact on other users’ accounts, unlike shared hosting.
Cloud Web Hosting
Cloud hosting hosts a website on several virtual servers, ensuring great uptime and scalability. Since cloud hosting uses a network of distant servers, it is more immune to physical hardware failures. If one server fails, another will assist in keeping your website operational.
WordPress Web Hosting
WordPress hosting boosts the speed and security of websites developed using the WordPress content management system (CMS). This web hosting option also makes it easier for you to create a WordPress website.
A Few Final Words
If you are interested in turning web hosting into a company, you will find that understanding reseller hosting is simple and a fantastic opportunity. Ensure that you are familiar with the operation of reseller hosting, that you have an acceptable plan and that you have chosen the most suitable hosting solution for your company’s requirements.
If you can do so, you will be able to establish a successful company reselling hosting, meet your customer’s requirements and make some money in the process. If you are unable to do so, you will not be able to achieve any of these things.
Hopefully, you now understand what reseller hosting is and how you may begin your company providing reseller hosting services. Reseller hosting is a fantastic business for the right individual. You may be operating a thriving company in no time if you are technically savvy and well-organised.