Reseller hosting is when you buy server resources such as disk space and bandwidth from a web hosting provider then resell it to your clients as your own for a profit. Reseller hosting can be a very profitable business, but only if you execute it right. In addition to reseller hosting, some hosting providers allow you to resell add-on services like domains, SSL certificates, and email services. As you may already know reselling is when you take something you already bought and then resell it to someone else for profit this is how a reseller hosting business works. For example, let’s say you are the web designer in the middle and you are working with the two clients on the right. Both clients want you to design them a new website and also help them set up hosting. Since you have already set up a reseller hosting account with your hosting provider you can now offer or resell hosting services to both clients.
Advantages of Reseller Hosting
- Low startup cost
- Generate recurring income
- 100% white labeled (logo/brandings)
- Easy management
- Resell add-on services (domains)
Reseller Hosting Business Startup Guide
Step 1: Figure out your target audience
You’ve already figured out the niche of your business, now is the time to find your target audience. Once you’ve figured this out, define your business goals as to how you plan to grow your business and customer base. Depending on this you can select a Reseller Hosting package from a parent hosting company.
Step 2: Choose a parent hosting company
Choosing your parent hosting company is a vital part of your business goals. The features offered by your host company must align with what you want to offer to your customers. Pricing, software applications, customer support, order management are some of the features that you should consider when selecting your parent host. One way to ensure you choose the right host is to do thorough research.
Step 3: Fix a Budget
A big budget is not a precursor to a successful business. All you need to do is invest properly. Post selecting your parent host company, check out its Reseller Hosting plans and select the one that suits your budget.
Step 4: Set your price
Pricing is important. If your packages/products are priced at an exorbitantly high rate compared to your competitors or you set very low prices, you’re at loss. Either you will lose your customers or you’ll be incurring losses instead of profit. Make sure to set your prices in this range so that you can get both customers, as well as, make a profit. And you can always increase your prices once you’ve established yourself in the industry.
Step 5: Promote your business
Last but not the least, promotion! Marketing your business is one of the most vital steps to finding customers. Once you have a website ready, add relevant information to it so that it is discoverable on search engines. Try taking the help of SEO-based keywords to aid your indexing and search engine rankings. Post this, set up your social media presence, and invest in advertising. Once you have a sufficient customer base you can even start sending out emails and focus on email marketing campaigns, building a blog, how-to-videos, and more.
Reseller Hosting is the most preferred business type especially if you’re already in the business of providing web design and development to your clients, as it can help you grow your business and help you be a one-stop solution to all website needs. Nevertheless, even if you’re just starting out it is a great way to make money.