In this day and age, every business needs a website in order to reach a wide set of audience. And every website requires a good host. Reseller hosting is a solution offered by web hosting companies that allows individuals such as website designers, developers and digital marketers to host their client’s website. It creates an avenue for generating supplemental income.
In this brief guide, we will discuss everything related to reseller hosting: what is reseller hosting, its pros and cons, how can you choose the right host for your reselling business and so on. So, let’s dive right in.
What is Reseller Hosting?
Reseller hosting is a service model where a hosting company rents hard drive space and bandwidth to another company/individual who, in turn, rents this to a third-party under their brand name. This way, you can sell web hosting to your clients without requiring to handle the underlying infrastructure. Linux reseller hosting is common among aspiring entrepreneurs who want to add auxiliary services to their brand.
What are the Pros and Cons of a Reseller Hosting Business?
Now that you have a fair idea of what reseller hosting is, let’s discuss the pros and cons of working as a hosting reseller. These include:
1) Recurring Income
Every website requires a hosting service to establish a presence on the internet. Instead of purchasing it directly from the web hosting provider, they can take it from a reseller host like you. By offering your existing clients an add-on service-web hosting-you can create a recurring source of income.
Most reseller services don’t require you to buy hosting equipment. As a result, you can do away with the expense of buying a server and leasing space in a data center. No need to maintain equipment either.
3) White Labelling
Since reselling is white-labelled, your customers don’t need to know which hosting provider you are purchasing services from. You can create your own hosting brand and set up plans that are tailored to the needs of your client.
1) Round-the-Clock Support
Web hosting demands round-the-clock support. So, you may receive calls or emails even during odd hours of the day. And because of the nature of this business, you will be expected to respond as early as possible, most of the times instantly.
2) Needs Thorough Know-how
When selling a web hosting plan, you need to be thorough with the ins and outs of a web hosting service. If you are new to the industry, it might take you some time to get the hang of it.
How to Choose the Right Hosting Provider for your Reselling Business?
Choosing a good Linux reseller hosting provider is akin to choosing a web hosting service for yourself. Here are some pointers to select a good host:
The host should offer round-the-clock technical support 365 days a year. So, if you face any issue, you can immediately connect with your reseller.
How much network uptime the web hosting company offers is of key consideration. You need to know what happens when their service is down and what procedure you need to follow if it’s down for a while.
Your reseller should help you scale seamlessly should the need arise. This is important because you may have to upgrade your resources as you gain more clients.
4) Contract Period
It is vital to know the minimum contract period before signing up for the plan. Also, understand the renewal process in detail.
5) Server Location
Do you want to cater to clients in a specific location or do you want to serve clients globally? The location of your servers is critical when choosing a reseller host.
6) Software Tools
Your reseller should offer the software options you are looking for such as a premium control panel (cPanel/Plesk), accounting software (WHMCS) and web development tools.
7) Payment Options
Your service provider should offer easy payment options. There should be a money-back policy in place. You should get your money back if you don’t like the service.
How to Get Started with Reseller Business?
1) Learn the Nuances of Web Hosting
If you do not have a sound understanding of web hosting, it is strongly suggested that you conduct some research to understand what you are going to undertake. Go through the different kinds of web services to appreciate the differences between them. Learn the features offered in a typical web hosting service (bandwidth, disc space, RAM, SSL, etc.)
2) Decide on a Web Hosting Provider
Once you begin to understand web hosting well, it’s time to choose a reliable hosting provider. The host should offer all the features you need in your packages. They should have the kind of hosting you want to sell: Linux reseller hosting or Windows reseller hosting. Their services should fall within your budget.
3) Understand your Software
Spend time learning your software tools (Plesk, cPanel and WHMCS). These will help you manage your web hosting account and the billing aspects of your business.
4) Decide on Customer Pricing
Setting up customer pricing can be tricky. In the reseller space, you compete with companies offering services for as low as $1 on one hand and others who charge hundreds of dollars on the other hand. So, it’s vital that you research the pricing well and, accordingly, divide up the server cost, operational costs and other factors. Add-on services such as SSL certificate will be charged extra.
5) Market your Business and Sell your first Account
It’s essential that you advertise your business well on the digital podium. But advertising can get expensive. So, you should first reach out to individuals/businesses you know. Start small and choose a client who is low-maintenance and doesn’t need more than one or two email accounts. You can even offer them an add-on service for free.
Depending on the efforts you put in, it may take a couple of months before you start making money out of your reselling venture. But once you get the hang of it, it may become a reliable source of income.