What is reseller hosting?
It takes a lot of effort and resources to operate a web hosting business. You may be able to provide helpful customer service, but what about the key server infrastructure? Don’t worry, there’s a great solution: reseller hosting, also known as “white label hosting.”
With reseller hosting, you rent server space, software, and bandwidth from a larger, more experienced web hosting company at wholesale prices, and then resell the resources for profit to someone looking to build a website.
There is a lot of demand for web hosting, be it shared hosting, WordPress hosting, dedicated hosting or virtual private server (VPS) hosting. Web hosting is the backbone of personal blogs, corporate websites, podcasts, vlogs, and just about anything else you can imagine existing on the web. Resellers are aspiring entrepreneurs looking to make a few bucks in the field of web hosting, as well as web designers and developers who want to expand their offerings for customers (and make a few bucks).
Resellers set the pricing structure for their offerings, not the web host that provides the servers and software. In many cases, resellers mark their packages by using a custom dashboard. This establishes a level of trust with people who may already be familiar with the reseller’s brand. Who wouldn’t want to set up shop with their company if you’ve done well with them in the past? And branding is important if you’re looking to get into the reseller hosting game. More on that in a moment.
How does reseller hosting work?
One of the
main reasons why people are dedicated to reselling web hosting, rather than building their own web hosting service from scratch, is the ease of entry. Reseller hosting does not require the extensive technical understanding of infrastructure that hosting from scratch requires.
Resellers are responsible for interacting with their customers, but are not responsible for hardware, software, or connectivity issues. Web server data center operators are responsible for that kind of troubleshooting. However, resellers may find themselves in the difficult position of liaison between the hosting provider and the customer for other types of technical support, such as billing and payment issues. In other words, you’ll need to demonstrate patience and understanding when dealing with angry customers.
Ideally, you should be able to provide some basic support yourself. For those issues that you cannot solve, you will need to contact the web host to find a solution. Therefore, the level and quality of support provided by the service you are renting your servers to resell can be quite important.
In addition, you must market your services to the public to attract customers. For example, if you already have an established web development company, then you have an established customer base to which you can launch your new hosting packages. Otherwise, you need to rush to spread your brand awareness. After all, Persona X may be familiar with GoDaddy’s web hosting packages, but she may not be familiar with their brand. If you’re part of a large company with big marketing dollars to spend, you may not have much to worry about. On the other hand, a one-person operation may struggle to get the word out about their new web hosting packages. Still, there are many potential customers who prefer to deal with a smaller, more intimate company. That might be your sweet spot, as a web hosting reseller.
Web Hosting Checklist for Resellers
If you plan to become a reseller, consider all the steps below
.
-
Calculate how many customers you can bring in to start the business. This will determine the reseller package you will need.
-
Determine the types and sizes of packages you will offer your customers.
- Determine the price you will set for your packages.
- Compare reseller hosting plans to see which company meets your needs and budget.
- Contract for the best reseller hosting plan.
- Set up templates for each of the packages you decide to offer.
- Market these packages and sell them to customers.
- Support your customers.
What are the key reseller hosting features you need?
With a reseller account, you get a selection of Linux or Windows-based servers, email, custom cPanel account management applications, File Transfer Protocol, MYSQL database management software, standard and solid-state storage, money-back guarantees, and a variety of hosting types, usually including shared hosting, dedicated and VPS).
You can also expect WebHost Manager (WHM) applications, reseller-specific software that allows you to control your customers’ dedicated server or VPS accounts. You’re also likely to find WebHost Manager Complete Solution (WHMCS) software that allows you to manage many customer-related features, including subscriptions, automated billing, and account cancellation.
Web hosts usually allow you to charge your customers as much as you want, but they expect your monthly cut. The monthly or annual fees that web servers charge you for their resources vary depending on the server specifications. We’ve seen prices as low as $7 per month (that’s cheap web hosting!), but the sky’s the limit in terms of high-powered hardware pricing.
How is reseller hosting different from affiliate programs?
Reseller hosting allows you to sell hosting packages, while affiliate programs drop a few dollars in your pocket every time someone signs up with a web host through one of their affiliate links. The first is an active role, as you must build your customer base, launch them, and deal with customer support issues. The latter is passive, as you can simply paste affiliate link codes into your personal or professional website, YouTube description box, or social media account.
Should I resell web hosting?
Yes, if you
want to get into the web hosting business without starting a full operation from scratch, or if you’re a web designer who wants to host your clients’ separate control panels without spending money for potentially expensive dedicated hosting or VPS hosting. That said, you should know something about how web hosting works. You need to be prepared for the inevitable problems that will arise and sometimes you will need to act as the messenger between your customers and your web host.
If you’re just getting started in web hosting, be sure to check out our manual, How to Create a Website, as well as How to Register a Domain Name for Your Website. Linux vs. Windows: How to choose the best server operating system for your website is also an excellent start. Mike Williams contributed to this report.