What is a Reseller Hosting Business: A Definitive Guide to Starting Your Own

What is a Reseller Hosting Business: A Definitive Guide to Starting Your Own

Article by DesignRush DesignRush
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Last Updated: August 17, 2022

Are you a small business owner looking to make some passive income? Becoming a reseller host could be a great way to do so.

Reseller hosting is where you sell web hosting space to your customers.

If you want to start selling hosting services, it's essential to understand the fundamental aspects of reseller hosting.

This article will explore the basics of what is a reseller hosting, how it works, and some commonly asked questions to address inquiries you might have.

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What is a Reseller Hosting Business

Reseller hosting is a web hosting business that involves a reseller purchasing web hosting services from a more prominent provider and then selling them to customers.

The reseller is responsible for providing customer support and managing the server.

Reseller hosting is one of the easiest ways to get into the web hosting business, as it involves less overhead and infrastructure than owning and operating your dedicated server.

People who do reseller hosting can be from many different industries. For instance, web designers or developers typically get into this business and want to offer their clients a complete package of web-related services.

In 2021, there were over 330,000 web hosting providers around the world.

How Does Reseller Hosting Work

Reseller web hosts are those businesses that resell server space from another company but still provide their services.

A reseller hosting account allows you to create your web hosting company through your server and business name.

To do this, you’ll need to provide services in one or more of the following areas:

You can also offer other products such as domain registration and SSL certificates to build your web hosting business.

Reseller Hosting Model Example

A typical reseller hosting model works like this:

The host provides you with all the hardware, software, and support needed to run your web service (for example, customer email addresses).

You then sign up for an account as a customer of that host.

Since you're now an official reseller of that company's products or services, you'll have access to all their tools—and so can any customer who signs up through you.

In return for providing these tools at no cost to yourself (other than paying monthly fees), the host takes a cut of sales generated by each user under your account.

What Are the Benefits of Reseller Hosting Business

Reseller hosting can provide you with a lot of different benefits. Some of these benefits relate to cost, while others have to do with the product's functionality.

By 2026, the demand for web hosting may reach roughly $150 billion, according to Global Industry Analyst.

Let's take a closer look at some of the most significant benefits of reseller hosting as a business.

Economical

One of the most significant benefits of reseller hosting is the cost.

You can purchase server space in bulk from a provider and then sell your customers access to that server at a discounted rate.

Doing this allows you to save money on your hosting bill and then offer cheaper hosting services to your clients.

Reseller hosting is a great way to start a web hosting business without making a significant investment.

As the middleman, you can make money off your hosting services without worrying about the infrastructure or support.

Flexible

Another great benefit of reseller hosting is its flexibility.

You can choose how much server space you want to buy, what type of server you want to use, and more. Doing so gives you much control over your hosting plan and lets you scale up or down as needed.

A reseller hosting account allows you to create multiple websites, each with its domain name and cPanel account.

You can customize your reseller hosting plans to fit your customers' needs, making it an affordable option.

Less Responsibility

With reseller hosting, you're selling access to server space you don't own or manage. It means you're not responsible for keeping and maintaining the server running.

Scalable

Reseller hosting allows you to scale your business up and down as needed. If you have a lot of customers at once and require a higher server capacity, you can buy additional server space to handle the load.

You can use reseller hosting to supplement your current income or make it your full-time job.

Reseller Hosting FAQs

How much can I earn from reseller hosting?

Knowing how much money you can expect from running a reseller hosting business is crucial before deciding if this is something for you or not.

According to research, the average salary for hosting specialists in the US is about $100 to $200 per month within six months.

It may be higher if other factors increase pay, like experience level or years spent working on related services such as programming apps or websites.

Do I need to pay anything for upgrades?

You can start your own online business with minimal investment, but you don't need to invest any money in developing your server facilities.

Instead, you can sell space on existing servers from a third party.

You have complete control over what domains or websites go on which servers and also get to make money by charging clients for using your services.

As long as there are people who want their websites (and there will always be demand), there will be opportunities for you as a reseller hosting business owner.

How to choose a reseller hosting provider?

When you choose a reseller package, here are some things to consider:

Make sure that the provider has good customer support. You can ask them how they handle common problems and if they have a knowledge base in case of emergencies.

When choosing a provider, you want one with a good reputation in the industry and among their customers. A company that is well known for quality hosting services and excellent customer care is likely to be more reliable.

The uptime of your website should be above 99%, which means that your site was available 99% of the time during any given month. It helps keep visitors returning even when there are issues with other sites on the server.

Consider the price of the service and whether it's within your budget. Ensure the provider offers a money-back guarantee; suppose you're unsatisfied with the service.

See to it that the provider also offers a variety of features and options that meet your needs.

How do I know if a reseller hosting business is for me?

Reseller hosting business is for you if you:

  • Dream of being your own boss.
  • Aim to start a hosting business.
  • Have some knowledge about hosting and servers
  • Want to offer hosting services to your clients.
  • Plan to resell hosting services from another company.
  • Look to provide value-added services to your clients.
  • Seek the opportunity to earn extra income.

What is the difference between web hosting and reseller hosting?

Web hosting is for individuals. On the other hand, reseller hosting is for businesses that want to host their customers on their servers.

Web hosting is for websites, and reseller hosting is for domains and websites. The two types of services offer very different products and services.

Most importantly: an individual cannot host another person's website with a web hosting plan; they would need to upgrade to a reseller package if they wanted to.

Where can I get technical support for my clients?

When you become a reseller hosting, you're essentially renting space on a server that you then resell to your clients.

The company that owns the server provides technical support to your clients. It can be beneficial because it means you don't have to worry about providing support, leaving you free to focus on other aspects of your business.

However, it's essential to ensure that the company you're working with is reliable and has good customer service so that your clients are taken care of.

That's why it's vital to get reseller hosting that includes white-label support from an experienced hosting company.

A white-label support team can provide excellent customer service and technical support to your clients so that you can focus on selling hosting plans and growing your business.

Plus, having a white-label support team can give your business a professional image and help you build trust with your clients.

So, if you're considering starting a reseller hosting business, find a host that offers white-label support.

What is a Reseller Hosting: Final Thoughts

When you run your own web hosting business, you must offer your customers access to every hosting package they could ever need.

It's no easy feat as you must ensure that everything aligns with how you operate your business and offers the right services for your customers.

Hosting reseller services can be complicated, but when you understand how they work, it's much easier to see why they are necessary.

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