For enterprising individuals, web hosting reseller plans present a decent business opportunity to start your own hosting business that can be launched immediately with a modest investment. Basically, you buy hosting plans directly from big hosting companies and sell them to the end clients at slightly higher prices to earn a profit. This guide contains a verified list of reseller hosting FAQs, important factors to consider and top reseller hosting service providers.
Reseller hosting is a business model in which you purchase hosting resources from the main hosting provider at bulk prices and resell to the end clients under your brand name after adding your profit margin.
The basic package includes web hosting resources and a reseller control panel through which you can create plans, and manage your business, clients, and billing. Many hosting providers also offer you other business-specific infrastructures like digital store and marketing tools. That is why it is advisable to invest your efforts in finding top reseller web hosting providers that provide optimum onboarding support.
Your role involves branding management and client acquisition and retention, while the main hosting provider looks after back-end and infrastructure management like server maintenance, security, uptime, etc.
It is an ideal model for aspiring entrepreneurs who want to immediately launch their own branded hosting business with a modest investment and minimum formalities within their comfort zone. You can either start it as a primary business or side business. Generally, digital service providers like web designers, developers, and SEO agencies are more attracted to the reseller hosting model as they have an existing pool of potential clients. However, any interested person or company can join the reseller hosting program.
The prices of various hosting plans/resources under the reseller model are lower than the retail prices at which they are sold directly by the parent host to their customers. For instance, if your hosting provider sells a shared hosting plan at $100 per year then you can purchase the same plan at $80 or $90 under the reseller hosting plan. After adding your profit margin you can sell the same plan to your end clients at $110 or $120. The price difference is your profit.
Moreover, the extended control over the hosting environment and comparatively cheaper prices also make the reseller hosting plan an ideal choice for people with multiple websites. Suppose a blogger has 20 different blogs, it would be cheaper and more convenient for him to buy a reseller hosting plan instead of buying 20 separate plans for each of them.
The reseller hosting plans require low investment and offer quick on-boarding. As a hosting reseller, you also get complete control over your business. Your package involves all the essential tools required to start your venture right away. All these things make reseller hosting a compelling business option for the people with average technical knowledge and limited resources to earn a decent income.
You can sell under your brand name
One of the major objectives of any business is to earn a reputation. Under reseller hosting, you can sell the hosting plans under your brand name and create your distinct identity and status in the market.
It needs low investment
You don’t need to invest in infrastructure, premises, or manpower. Just buy hosting plans at bulk prices and use your marketing skills to sell them to the end clients after adding your profit margin. You can start small and scale up at your own pace.
Easy digital suite to manage your entire hosting business
It isn’t difficult to manage your entire hosting business single-handed. With reseller hosting you get the reseller hosting panel- a convenient digital ecosystem to control your entire hosting business- resource allocation, billing, customer data, communication, marketing and report generation.
Complete control over business strategies
You get complete control over pricing, marketing strategies, and customer relations management. It allows you to fine-tune your business with clients’ expectations, latest market trends, and peak season offers.
Create customized plans
No two customers are the same. So, in the reseller hosting model, you get the raw hosting resources to develop tailor-made hosting solutions that perfectly fit the specific budget and requirements of your end customers. It helps you grow as a customer-friendly enterprise and also enables you to cater to customers across diverse demographics.
Professional assistance from a dedicated team
Managing a hosting business isn’t an easy task as it involves server maintenance, 24X7 monitoring, round the clock support, load balancing, ensuring maximum…..the list is long. As a hosting reseller, all such complicated back-end tasks would be managed by your parent host on their premises. So, you don’t have to stress yourself about complicated back-end management activities at any point in time.
Just like any other business, reseller hosting business is not without challenges. Keep in mind that starting your hosting venture is easy but you need to put your efforts into converting it into a reliable source of income. Along with many pros, this business has some cons as well.
Restricted server access
You have restricted access to the server infrastructure which makes you dependent on your parent host
Service quality of your parent host affects your brand
The service quality of your parent host directly impacts your brand but you cannot directly fix the issues like low uptime, slow speed or substandard performance
Challenges while changing parent host
Migrating your clients’ data can be challenging when you decide to change the hosting provider
Handling customer relations can be challenging
While most hosting providers offer customer support (without revealing their brand name) to your end clients, you cannot ignore the calls of customers who directly contact you. You have to be patient to listen to their queries, understand the issues, and provide them a satisfactory answer. Depending upon your customer base and their issues, it could be a time-consuming task.
You need excellent marketing skills
Reseller hosting business isn’t a get rich quick scheme. You need to have excellent sales and marketing skills. Being a high competition industry, it is very difficult to survive in the market if you lack these skills.
Reseller hosting plan refers to a reselling business model that allows you to buy hosting plans and resources directly from the main hosting provider at bulk rates and make a profit by selling them to end customers at your own prices.
It depends upon the specific reseller hosting provider. Some providers ask you to pay an advance deposit minimum amount against web hosting reseller plans which gets automatically debited as you sell new plans. Some providers let you join a reseller hosting program with zero deposit and buy hosting plans only upon getting a sales query. Others may have monthly billing cycles for resellers.
As a web hosting reseller, there is no maximum limit on your income potential. You can earn recurring income from each client that keeps on growing with your client base. You buy hosting plans on bulk rates, set your own prices and change them anytime to optimize your profits. Best reseller hosting providers empower you to multiply income avenues by selling products like SSL certificates, site builder, digital tools, etc.
In most of the cases, the resellers are generally the first point of contact for the end customers. They can then communicate the issue to the customer support department of your parent host through ticket, email, chat, or direct phone call. It is advisable to join the Best reseller hosting providers that offer prompt response and resolve the issue as soon as possible.
You are generally offered extended control over your clients' accounts so that you can offer them a personalized experience. Through your reseller control panel, you can remove any feature or add desired features to the hosting account of your end clients.
Yes, as a hosting reseller you can decide the features of your client's control panel. You can allow or restrict access to specific features/tools, determine the application access, and also permit them to use some add-ons.
As an independent entrepreneur, you need to directly collect the bills from your end clients. Your reseller control panel provides you complete information about the outstanding and upcoming bills and an ideal reseller control panel also has the provision to directly mail the invoice to your clients, set grace period, and stop services in case of overdue bills.
Yes, just like any primary hosting provider you can instantly create hosting accounts for your end clients in real-time without any dependency on the parent host. The ideal web hosting reseller plans have all the features to create the desired account and enter the required information.
The best reseller web hosting providers activate your account immediately after the formalities. However, you would need to invest more time and margin in building and branding your website, marketing collateral, etc. before you start selling the plans officially.
There is no minimum eligibility or required level of technical proficiency to become a reseller. Your part is to control the business aspect and hence the main eligibility tips to have good sales and marketing skills and keen business acumen. That said, you should have at least basic technical knowledge about web hosting. Also, your client will directly contact you regarding the issue and you should be able to understand the basic issues and communicate the same clearly to the support team.
The main aim of your parents is to delegate you some part of their business responsibility. So, they would rather let you be in direct touch with your end clients. One of the USP of best reseller web hosting providers is that they never contact your clients directly nor reveal their brand identity.
SSL certificate will encrypt the data and thus secure vital information of your end clients like bank details, social security, UID, credit card details, etc. It allows them to securely purchase hosting plans. SSL certificates also make your site secure (indicated by a green padlock or similar trust icon) to build trust among the clients. Generally reputed hosting providers offer you a shared SSL certificate by default which is sufficient for the new resellers. You can also buy private SSL by paying an additional charge.
Good web hosting reseller plans come with sufficiently large space that allows you to cater to many clients without compromising on performance. That said, it is advisable to check the remaining space in your reseller control panel before you add new clients and upgrade your plan to get more space if needed. There should always be sufficient room for accommodating the fluctuating demands of customers' sites during traffic spikes.
Absolutely not. It essentially turns you into middlemen. No good reseller hosting provider will damage your brand reputation by using their logo. The default control panels for your clients don't carry any logo or branding and you have the right to brand it as your own by adding your company logo and essential private labeling.
Obviously yes. You upgrade your account to add more features and resources which will increase your income potential as well. You would need to pay the corresponding amount to get these extra resources. You have to contact your parents' host about specific prices.
It depends upon your parent host. Many reseller hosting providers also allow you to join their domain reseller program where you can sell domain names as well as hosting packages. In that case you can directly handle the domain name registration/management of your clients from your reseller control panel. However, it is advisable to confirm it with your parent host beforehand to be sure that your account includes domain reselling option.
Technically speaking every reseller has a single reseller control panel with exclusive access. The only way to make more resellers is to give access to the specific trusted people only who can sell plans and manage other features on your behalf.