Many people have heard of reseller hosting, but they might not know what it actually entails. It is the process of taking a company’s web hosting service and then selling that same service to other companies.
The idea behind reseller hosting is that if you are able to offer a better product at a lower price than your competitors, you will be able to grow your business more quickly. In this post, we’re going to cover some key tips for how you can make money with reseller hosting but before that, let’s take a quick look at what reseller hosting is and how reseller hosting works.
What is reseller hosting?
Reseller hosting is a type of web hosting service where the reseller (be it an individual or a company) purchases a larger hosting block with larger disk space & bandwidth and rents it to its customers.
Depending upon the number of existing/potential customers and their requirements, the reseller needs to decide how many resources to buy from the parent company. Based on this, the reseller can then create multiple packages and sell them to its customers.
How does reseller hosting work?
Most Reseller Hosting service packages operate on a wholesale basis, allowing resellers to purchase hosting services at a discounted rate and then resell them under their own brand to their clients. Depending on the web host, the reseller might be charged a flat monthly fee plus service fees, or they might operate on a pay-as-you-go model.
Here’s a step-by-step breakdown of how reseller hosting works:
- Choose a web hosting provider: Select and sign up with a reliable web hosting provider.
- Set up a reseller account: Establish a reseller account to access wholesale prices.
- Customize hosting packages: Tailor your hosting packages to meet the needs of your clients.
- Brand your services: Add your own branding to the hosting packages.
- Sell hosting services: Resell web hosting services at a markup to your clients.
This model can be highly profitable for companies with substantial computing resources. While they can sell web hosting packages directly, reselling allows them to reach a larger customer base.
For end users, the best reseller hosting plans offer reliable hosting services, especially when resellers use well-known providers, along with additional services or solutions from a trusted source.
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Tips for how to make money with reseller hosting
Finding the perfect niche
As a reseller web hosting business, you’ll be competing with thousands of other players in the market, including the big boys. To enter successfully into this business and sustain consistent growth, you must understand the market situation beforehand and launch a product/service that people need or will look forward to. Instead of catering to the masses, it is better to be specific in your offerings. Pick a niche where you can serve better than your potential competitors.
In order to determine where to start, you should check the search volume, competition (in terms of both SEO and PPC), price range, CPC, and similar metrics. If you’re already serving clients in a particular vertical, then it is easier for you to take action.
Position yourself in the market
Once you have found your niche, you need to identify what they want from a web hosting provider. To understand the needs of your target audience, you should examine the existing providers already operating in your chosen niche. Wherever possible, try identifying at least five competitors who are targeting your future potential customers. You can then examine the products & services they are offering and their price points.
These will be your direct competitors. In order to stand out from the crowd, you can either offer a hosting solution that is more budget-friendly or present yourself as a premium option. Of course, the latter option will involve offering unique features, more resources, or a higher standard of customer service.
Additionally, you should also gauge your direct competitors’ size and the resources available to them. It is quite possible that established hosting providers may already be targeting your chosen niche. In this scenario, you may choose to further refine your target audience.
Choose the right hosting provider
As a reseller of web hosting, your services are completely dictated by your web hosting provider. Choose the right hosting service provider for your business that can give you a strong start.
For the best results, you should look for a hosting provider that closely matches the resources and features your existing/potential customers need. Also, it’s not enough just to look for hosting providers offering the latest features or uncapped resources such as memory, bandwidth, disk space, or data transfer speed, but you must also pay attention to choosing the hosting provider that will help your online business flourish.
Additionally, make sure to look for 99.99% uptime. If your hosting provider’s servers face downtime, it will certainly take all of your customers’ websites down with it and it’ll be very difficult for them to get much traffic as their visitors won’t be able to access it only. Thus, opt for a hosting provider that offers an uptime guarantee.
Create a strong brand
There are certain misconceptions surrounding web hosting resellers. Some customers feel they can get a better experience and offer by cutting out the middleman and purchasing directly from your hosting provider. And some may believe that reseller hosting is more expensive, as both the provider & the reseller have to earn a profit at their end. Therefore, it is important for your branding to reflect your chosen niche and communicate what makes you unique. By creating a consistent message that runs through all the platforms such as social media, website, emails, etc, you can clearly communicate who you are targeting and what you have to offer.
Having a clear & consistent brand message now will make it easier for you to market your business in the future. Strong branding also helps obscure your identity as a hosting reseller.
Promotion
Once you’ve set up your web hosting reseller business, the next step will be capturing leads and closing the maximum sales.
Depending upon your budget, skills, and experience, you can decide which marketing channel(s) will be a suitable choice for you. SEO, email, social media, and SMS marketing are useful media channels to deliver your marketing message to potential customers. Moreover, with some marketing budget, you can also try PPC or other advertising available options to generate quick business.
Finally, WOM (Word of mouth marketing) and affiliate marketing are the best way to drive referrals to your web hosting reseller business.
Excel at customer support
As a reseller hosting provider, your customer support has the potential to make or break your business. Provide them with a high level of customer support; this will help you stand out from your direct competitors.
Happy customers can certainly be the best way to advertise your business. The best customer experience starts as soon as they land on your website. If they have any questions, then it should be easy for them to get answers. This might involve taking their questions via live chat or making it easy for them to research the answers themselves using self-help resources such as FAQs. Ideally, you should provide multiple ways for your customers to contact your customer support.
However, it is important not to over-promise and under-deliver. It is far better to offer a few customer support options and provide excellent customer service across these limited options than to offer inconsistent support across all channels.
Plan for future expansion
Targeting a niche audience can reduce costs and improve customer experience, but being too specific can limit future growth opportunities. Even if you’ve chosen your niche, consider future expansion before fully committing. One approach is to transition into new niches as your business grows, potentially expanding into related industries or geographical areas. Diversifying product lines or services can also help in reaching broader markets. Additionally, investing in scalable infrastructure and technology will facilitate seamless growth. Building strategic partnerships and alliances can open new avenues for expansion, ensuring your business remains adaptable and competitive in the dynamic market landscape.
Create tailored web hosting packages
Once you’ve selected your niche, developing custom, unique, and personalized web hosting packages tailored to your niche clients is an effective way to grow your business and increase revenue.
With Reseller Hosting, you can adjust hosting plans and provide customized services using tools like Web Host Manager (WHM). This allows you to sell packages that best meet your audience’s needs and preferences. Additionally, this approach helps generate positive word-of-mouth, attracting more clients to your web hosting reseller business.
Develop a marketing strategy
Promoting your web hosting business through a well-crafted marketing strategy is essential for scaling your business.
Leverage various marketing channels, such as social media platforms, email marketing campaigns, advertising banners, and Google Ads, to reach your audience. Identify the platforms most frequented by your target audience and use them to showcase your services, expertise, and experience. Engaging with your audience and addressing their concerns can strengthen your social media presence, boost your brand’s credibility, and turn your business accounts into lead magnets, attracting potential clients.
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How to start your reseller hosting business
1. Find a dependable hosting company
Research web hosting providers to find one that meets your needs. Check customer reviews and the expertise of their support team for reliability. BigRock is a strong option, offering affordable reseller hosting with robust support and comprehensive features. They provide user-friendly tools like cPanel and WHMCS for efficient management and scalable plans to grow with your business. With 24/7 technical support and a solid reputation, BigRock lets you confidently build and expand your hosting business under a trusted brand.
2. Acquire reseller hosting packages
Evaluate the available reseller packages, comparing their bandwidth and storage options. Select the package that best fits the requirements of your reseller business.
3. Identify your target audience
Determine your main audience, such as startups, web designers, and web developers. These groups typically seek cost-effective solutions with lower bandwidth and storage needs due to minimal website traffic.
4. Design your custom packages
Once you’ve obtained reseller packages from your hosting provider, create and display your personalized packages for your clients on your website.
5. Set up technical support options
Choose the type of technical support you will provide. Offering 24/7 phone support is highly appreciated by customers but necessitates a larger staff compared to email support. If you do not plan to offer in-house tech support, consider outsourcing to resolve client issues efficiently.
6. Choose a payment processing solution
Examine the costs and features of bank merchant accounts and online payment options. Ensure the service can handle various credit card brands and supports recurring billing for monthly subscriptions.
Is reseller hosting profitable?
Yes, reseller hosting services is a profitable web hosting solution for several reasons:
1. Meeting demand for personalized solutions
There is a growing need for affordable, convenient, and personalized web hosting solutions that small websites and businesses can rely on. As a hosting reseller, you can provide tailored hosting solutions that larger companies with extensive customer bases may struggle to offer, helping you build a credible business over time.
2. Low initial investment
Unlike large hosting companies that require significant investments in infrastructure, as a hosting reseller, you start without the overhead of hardware and infrastructure expenses. This allows you to focus resources on business growth rather than managing physical infrastructure.
3. Remote management capability
Reseller hosting enables you to manage your business from any location, reducing costs associated with office space and physical server maintenance.
4. Efficient management tools: WHMCS, WHM, cPanel
Reseller hosting packages include tools like cPanel for website management and WHMCS for automated billing, streamlining service delivery and customer management.
5. White label service
Sell hosting plans under your brand name, establishing a distinct identity and credibility in the industry.
ENDING NOTE
Turning reseller web hosting into a profitable business is not always easy. However, many people have successfully added web hosting to their offerings and have even launched entire businesses dedicated to reselling web hosting services.
The above tips will help you make money with reseller hosting. Just remember to set clear goals and work towards achieving them.
As said earlier, as a web hosting reseller, the service you provide to your customers is ultimately dictated by your web hosting provider. Contact BigRock to become a reseller hosting partner as your hosting plan will come with an uptime guarantee, performance as the top priority, and 24/7 customer support.
FAQ- Reseller Hosting
How much can I earn from reseller hosting?
The earnings from reseller hosting can vary widely depending on factors like pricing strategy, customer base size, and service quality. Typically, as a reseller, you earn through the margin between the wholesale price you pay for hosting packages and the retail price you charge your customers. Successful resellers can generate significant income by attracting and retaining clients through personalized service, reliable hosting, and effective marketing. Ultimately, your earnings potential is scalable based on how well you manage and grow your hosting business over time.
Do I need technical skills to become a reseller hosting provider?
While having technical skills can be beneficial, they are not strictly necessary to become a reseller hosting provider. Many hosting companies offer user-friendly management tools like cPanel, WHM, and WHMCS, which simplify tasks such as account creation, billing, and customer support. Additionally, reliable hosting providers offer robust technical support to assist with any complex issues. However, having a basic understanding of web hosting concepts and customer service can greatly enhance your ability to manage and grow your reseller hosting business effectively.
How do I choose the right reseller hosting provider?
Choosing the right and best reseller hosting provider doesn’t have to be complicated. Start by looking at reliability and customer support. You want a provider with good reviews and a solid reputation for uptime. Make sure they offer the tools you need, like cPanel, WHM, and WHMCS, for easy management. Compare their pricing and packages to find something that fits your budget. Don’t forget to check their support services—you’ll want quick and helpful assistance when needed. Find a provider that matches your business goals and can grow with you.
What are the challenges that I might face in reseller hosting business?
In a reseller hosting business, you might face several challenges.
- Managing customer expectations can be tough, especially if technical issues arise.
- Ensuring reliable and consistent service is crucial, as downtime can lead to customer dissatisfaction.
- Competition in the hosting market is fierce, requiring effective marketing strategies to attract and retain clients.
- Staying updated with the latest technology and security measures is essential to protect your clients’ data and maintain trust. Balancing these aspects can be demanding but crucial for success.
