Do you want to start your own web hosting company? Or maybe you’re just looking to begin a business with low-start up costs. Either way, this guide will cover everything you need to know about reseller hosting, so you know if an affordable reseller hosting business is right for you.
What Is Reseller Hosting?
In a nutshell, if you have customers who need hosting services, you can buy a bulk amount of hosting space and resell it to them at a healthy profit. It’s a great way to add a recurring revenue stream to your business. Reseller hosting can be a very prosperous business, but only if you execute it correctly.
Benefits of Reseller Hosting
- Low start-up costs. Starting a reseller hosting business comes with low start-up costs. This is because you either pay a flat fee or for the amount you use.
- Generate recurring income each month your clients host with you.
- Some reseller hosting plans are 100 percent white label. This means the hosting provider allows you to re-brand and customize your reseller hosting account with your business name and logo. White label services are highly beneficial to you, as a business owner, because you get to run your own business and gain clients with your brand, without your clients ever knowing the original hosting provider.
- Each of your customers gets their own control panel login. They’re not contacting you regularly to set up a new email account or reset a password.
- You can create different hosting plans like standard, deluxe, or ultra, depending on your clients’ needs and budgets. That way, you have something for everyone.
Find an Affordable Reseller Hosting Plan
If you’re ready to get started, the first thing you need to do is to set up a reseller hosting account with a hosting provider. You must do the correct research to find a reputable hosting provider that is the right fit for your potential business and the services you wish to offer to your clients. Reliable reseller hosting is only as good as your provider. This is the foundation of your success.
With a lower quality reseller hosting provider, your clients’ websites might have a lot of downtime, slow loading pages, poor customer service, and security. For example, if your reseller hosting service is frequently down, you may lose your client’s trust and business. You must choose quality reseller hosting so you can be confident that your clients get the best service possible. Take the time to find the right partnership, as it will affect your reseller hosting business in the long-term.
To make your reseller hosting more manageable, you might want to choose a plan with WHMCS. WHMCS, or web host manager complete solution, is a robust client automation tool that gives you total control of managing your web hosting reseller business. With WHMCS, you can automatically handle sign-ups, billing, provisioning, and support.
Create a Lucrative Profit Infrastructure
After the initial set-up, you can start to turn a profit. For example, let’s say you’re the web designer, and you’re working with two different clients. Both of your clients want you to design a new website and help them set up hosting services. Since you have already set up a reseller hosting account with your hosting provider, you can now propose or resell hosting services to your customers.
As an example, if the reseller hosting plan you bought is 20 dollars a month, you can resell that plan to each of your clients for 40 dollars a month. Or, you can agree to an annual fee. The price you charge your clients will differ depending on the hosting provider and the plan you choose. It also depends on your client’s requirements, budget, and the added services you provide.
Resell Add-on Services
Some web hosting companies allow you to resell more than just hosting services to your clients. You may be able to sell a variety of add-on services such as domain registration, SSL certificates, and email to generate additional income.
Provide Great Customer Service
One thing you do need to be aware of, however, is providing front-line services for your customers. It’s always essential to establish a good relationship with each of your clients. Clients will be more willing to pay higher fees because you have a great business relationship.
The web host will take care of the big, daunting tasks in the background. Nevertheless, your customers will contact you for initial support. When things take off, you can start to automate your hosting business, such as tasks like billing.
Stand Out from Your Competition
Since you need to turn a profit, you might not be able to offer the most affordable hosting plans like the big brand names. However, there are steps you can take to differentiate yourself from the competition.
To make your hosting services more engaging and customized, you can also bundle your hosting services with your web design, web development, or marketing services as a packaged deal. This is something they won’t get with the larger hosting websites, but only if they host with you. Most business owners would much prefer working with one person who is familiar with their website to give them the personalized support they need.
Reseller hosting is an excellent opportunity for web designers and web developers. Since you’re aware that your clients need hosting services for their websites, it can be a simple sell. Entrepreneurs and small businesses can also greatly benefit from reseller hosting who want to provide more services to their clients.