Reseller hosting is a form of web hosting where the owner of the account can use his or her allocated disk space and bandwidth to host websites for other people. The reseller – you – buys the hosting space wholesale and then sells them to customers for a profit. When operating as a reseller, you will appear as an actual web hosting company to your end-user customers–i.e. you will be “re-selling” the services for your own profit.
Let’s just say that someone you know owns a restaurant. They don’t know anything about hosting. But they know they need it to keep their restaurant’s website online. You offer them the ability to host their website–as you can think you can give them a cheaper price than what they are currently paying along with better service.
Your client will have their own control panel, so they can manage everything on their own, like managing their Email accounts. From their perspective, you are their actual hosting provider. There is no mention of the underlying web host anywhere on the interface they have access to. Nevertheless, you can make a profit by charging them a fee higher than what you pay your web hosting provider.
Web hosting is a very complex business. You need to build and maintain servers, rent or build data centers across the globe with reliable upstream providers, hire and maintain highly qualified staff working on shifts around the clock (system administrators, technical support, account managers, and others), set up and maintain the entire software stack (server OS, web server, database server, Email, etc.). And that is just the tip of the iceberg.
Another major benefit is the recurring revenue stream. Normally, if you are a web design company, you would get a one-time payment for actually building your client’s website–and you might get some smaller payments down the line to do maintenance/update work. A great thing about web hosting is that it is a service with an expiry date and needs to be renewed on a monthly or annual basis. This can help you establish a steady stream of income.
All major web hosting providers offer a reseller hosting program, and while everything seems great on the surface, there could be a lot of drawbacks when you start digging in. The first word of advice to you is: read the fine print of every reseller program you consider! Carefully examine all available documentation and inquire about the limits that are in place. As much as you could perhaps hear the word “unlimited,” nothing is unlimited in the web hosting world.
Most providers focus on two things–disk space and monthly price. Typically, the disk space varies between 10 GB and 100 GB. This is important because it determines how many websites you can host on your account. The number of sites that you can host is usually labeled as “unlimited,” but you are actually limited to the available disk space.
The price is usually monthly and typically ranges from $10.00 to $50.00. What is really important to note when looking at the monthly price is the duration of the contract. For example, an ad might say “$9.99” with a 50% discount, but it might turn out that you have to sign up for a three-year contract eligible for that promotional offer.
Here are the other factors to consider when looking to find the best reseller hosting provider:
Software platform: it‘s crucial to see the architecture of the server software and whether you’d be able to run your applications. If you need to run ASP scripts, you need to get a Windows server. The most popular choice, however, is to go to the LAMP stack — Linux, Apache, MySQL, and PHP.
Whether you’re looking to offset your hosting costs, start a side hustle, or grow into the next major global hosting brand, you can definitely make a profit from the reseller web hosting business. The industry has an incredibly low entry cost, especially compared to starting from scratch as a hosting provider. Even with a small customer pool, the right reseller plan and correct pricing can quickly translate into regular, recurring revenue.
Once you understand how your money-making goals fit other business priorities, such as market share or service quality, you’ll want to consider your customer profile, costs, revenue targets, competition, market trends, and other pricing factors for your hosting plans in a way that maximizes profits.
Yes, you ‘re probably going to have to set your sights low at first, but spend time researching and understanding profit margins. According to an NYU study, computer services organizations can expect to earn a 6 percent profit margin. You ‘re going to want to cover your costs and remain competitive, no doubt, but don’t be afraid to push for more profits — some articles suggest targeting as much as 20%
The most popular saying in the financial world is “buy low, sell high” and is applicable in the case of reseller hosting. With most reseller programs, you pay for a hosting package with certain specifications, and you can host as many websites as you want as long as you have enough server resources ( e.g. disk space, monthly traffic, etc.). Typically, these programs allow you to set your own profit margins, so you have full control of how much you can earn.
What is unique about HostBigSpace’s reseller hosting program is that while you can opt for a VPS account and host as many websites as you can, you can also choose to sell our standard hosting plans at your own price. In that way, you only pay the difference between what you pay us and what your customer pays–so you can start a reseller hosting business for no money at all.
Customer support: a crucial aspect that people often gets overlooked. The question here is: who is the first line of support for your end-user customers? Who’s going to offer them a support service? Most reseller hosting providers offer support to their actual reseller clients while, in turn, the actual resellers must support their own customers.
Online storefront: you can’t make a sale without a real store, can you? The reseller hosting program you sign up for should provide an online storefront that you can easily add to your own hosting site. It should allow your potential customers to order hosting accounts on your website.
Website migration: a free website migration service helps to attract new clients, so it’s a good thing if your host provides it. Check if they’re offering it and what the actual conditions are.
Backups: check if your customer accounts get backups on a daily basis with their plans or if an additional payment is required.
Who is providing technical support to my clients? This is something you should definitely check with your reseller hosting provider. Like most companies, at HostBigSpace you are responsible for providing customer support to your end-customers.You would now appear to them to be the actual hosting provider, and you can charge them whatever you want. They receive a quality web hosting service while you make a good profit. The minimal operating and investment costs involved are a major benefit of reseller hosting. You don’t have to spend any money on server hardware and software, data center infrastructure, staff salaries, and any related costs. All of this is taken care of by the actual web host whose services you would be reselling.
Just In Case things go badly, always have a backup. Our system does include basic recovery we recommend this addition.