If you have customers that need hosting services, you can buy a bulk amount of hosting space and resell it to them at a profit. It’s fairly simple, so anyone can learn how to operate an affordable reseller hosting business. The web host you purchase the space from will handle all of the tricky, back-end technology while you sit back and enjoy all of the benefits of being a web host. Reseller hosting is an excellent option for entrepreneurs looking for new opportunities. It can also be a unique opportunity for web designers who already have familiarity with the web hosting space.
Ready to get started? Here are some steps you need to take to set up your reseller hosting business.
Choose the Correct Plan
If you’re ready to get started, your priority is to set up a reseller hosting account with a hosting provider. Take your time to find a reputable hosting provider that is the right fit for your potential business. This will make or break your reseller business. Reliable reseller hosting is only as good as your provider.
After you have found the correct web host, you need to choose a reseller hosting package. This is another decision to make carefully. Think through what you can afford, the profit margins you want to achieve, and what you want to offer potential or existing customers. Web host providers will typically offer different options, and then you resell to your clients.
To make your reseller hosting more manageable, you might want to choose a plan with a web host manager complete solution, or WHMCS. WHMCS is a robust client automation tool that gives you total control of managing your web hosting reseller business. With WHMCS, you can automatically handle tedious tasks such as sign-ups, billing, provisioning, and support.
Set Up a Domain
A domain name is how your customers will be able to find you on the internet. Make sure to pick a name that is easy to remember and leaves an impression. There are great tools on the internet to help you decide what domain name works best for you. Most web hosting businesses will have tools that can check if your name is available for use. If it isn’t, you can always come up with a different variation.
After you have chosen your domain name, you must register it with your web hosting company. If you have already registered a domain name elsewhere that you want to use for your reseller hosting business, you can transfer it to the web host.
Create Your Hosting Plans
Start to create your hosting plans to offer your customers a range of different pricing options. You can decide on the disk space, bandwidth, etc., to assign to each particular plan.
Most resellers don’t just sell web hosting. They also add in other services. Some of the most popular add-on services to resell include domain registration, SSL certificates, and email. You are not just limited to reselling web hosting with your business.
Determine Your Pricing
What you choose to charge your clients is entirely up to you. Keep in mind that reseller hosting is a white label business. “White label” means that your clients will have no idea that you are reselling services from another hosting company. They will think that you are the web host.
When you’re trying to figure out how much to charge for each package, there are two key points you should keep in mind:
- Don’t try to offer the lowest price. Individuals who run legitimate companies understand that they need to turn a profit for a business to succeed. It’s true that there is a lot of competition in web hosting pricing, but most people will pay a premium price for excellent customer service and support.
- Think about what your potential – or existing clients – need in a hosting web service. If you have existing clients, that’s great. Nobody knows your customers and your market like you do. You can charge them as much as you see fit.
If you don’t have clients yet, you should start building your target audience. Who is it you’re trying to reach? What are their specific needs and pain points? It’s not enough to simply state, “I want to sell web hosting services to everyone who needs it, and I want to charge the lowest price possible.” Having a broad, unclear plan like this is a recipe for disaster.
Create Accounts for Your Customers
Once you have created your hosting plans, start creating accounts for your customers to access your website. Create usernames, passwords, and assign a particular package to each customer. When you have completed this, your customers will have their very own control-panel login, so they will be in full control of their web hosting account.
Even though you are not technically the web host yourself, this is your company. You will begin to establish long-term relationships with your customers for the foreseeable future.
Reseller web hosting is a great way to start your own brand with low-start up costs. It guarantees recurring revenue, which is key to sustaining long-term wealth. Book a consultation with us today to learn more about starting an affordable reseller hosting business.