What is Reseller Hosting? (Is Reseller Hosting still Profitable in 2020?)

What is Reseller hosting?
We give you the reseller hosting definition and show you how it works. We also review the advantages and disadvantages of reseller hosting, so you know if starting a reseller hosting business is good for you. Let’s get started.

What is Reseller Hosting?

Reseller hosting is when you buy reseller hosting 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 also allow you to resell add-on services like domains, SSL certificates, and email services.

Just so that it’s easy to understand how Reseller hosting works, let’s look at this example. As, you may already know, reselling is when you take something you already bought and then resell it to someone else for a profit. This is similar to how a Reseller hosting business works.

Let’s say you’re the Web Designer in the middle and you’re working with the two clients on the right. Both client’s want you to design them a new website and also help them set up hosting. 

Since you’ve already set-up a Reseller hosting account with your hosting provider on the left, you can now offer or resell hosting services to both clients. 

what is reseller hosting example

what is reseller hosting?

For example, if the reseller hosting plan you bought is $30/month, you can resell a hosting plan to each of your clients for $60/month or you can agree on a yearly fee.

The price you charge your clients for hosting will vary depending on the hosting provider and plan you choose. It also depends on your client’s needs, budget and the additional services you provide such as maintenance.

Advantages of Reseller Hosting

Low Startup Cost – Starting a Reseller business has low start-up costs because as with most reseller plans, you pay a flat fee or only pay for what you use.

Generate Recurring Income – You can generate recurring income each and every month your client’s host with you.

100% White Labeled – White-labeled reseller hosting allows you to rebrand and customize your reseller hosting account with your business name and logo. You get to run your own hosting business and bill your clients under your own brand, without your clients knowing the original hosting provider. 

Easy Account Management (WHMCS) – To make managing your Reseller business easier, you should choose reseller hosting with WHMCS. WHMCS stands for Web Host Manager Complete Solution. WHMCS is a powerful client management automation tool that gives you full control of managing your web hosting reseller business. With WHMCS, you can automatically handle signups, billing, provisioning, invoicing and support.

Resell Add-On Services  – Some reseller hosting providers give you the opportunity to sell more than just web hosting to your clients. You may also be able to sell a variety of add-on services like domain registration, SSL certificates and email to generate even more income.

Disadvantages of Reseller Hosting

Bad Reseller Hosting – Your Reseller business is only as good as your hosting provider. Reliable Reseller hosting is the foundation of your success. With a bad Reseller hosting provider, your client’s websites may have lots of down-time, slow loading pages, poor customer service, and security.

For example, If your hosting provider’s server is down frequently, you may lose your client’s trust and business. It’s important that you choose quality reseller hosting, so you can be confident that your clients get the best service possible. It’s also important to remember, cheaper reseller hosting isn’t always the best, especially when your reputation is on the line.

Customer Support – As a hosting reseller, you’ll be responsible for communicating and providing support to all your clients unless you outsource hosting support. The obligations you have to support your clients can be challenging. If there’s an issue or if a server goes down in the middle of the night, you’ll be the first person they’ll call. As mentioned before, your Reseller business is only as good as your hosting provider, so make sure you get Reseller hosting with the best 24/7 customer support. The better support you get from your hosting provider, the better support you’ll be able to provide your clients. 

Competition – Since you need to make a profit, you may not be able to offer the cheapest hosting plans like the bigger hosting companies out there.

However, there are ways you can differentiate yourself from the competition. Not only can you offer quality hosting, but you can provide personalized service and support. To make your hosting services more attractive and personalized, you could bundle your hosting services with your web design or web development services as a packaged deal. This is something that they won’t get from the big hosting providers, but only when they host with you. Most business owners would much rather work with one person who is familiar with their website and that can give them the personalized support they need.

It’s always important to establish a good relationship with each and every one of your clients. Clients will be more willing to work with you, even if they have to pay higher hosting prices because you have a great business relationship and they feel more comfortable working directly with you.

Who Should Use Reseller Hosting?

 Reseller hosting is great for Web Designers and Developers because you already know your clients need hosting services for their websites, so it’s super easy to sell. 

This is can also be a good niche for entrepreneurs and businesses who want to provide extra services to their clients or for anyone who wants to start a new business with low start-up costs.

What are the Best Reseller Hosting Providers?

If you’re wondering how to start a web hosting company then be sure to read “How to Start a Web Hosting Company in 5 Easy Steps!” Thanks for reading our blog and we wish you much success in your new web hosting business venture. Below we compiled a list of the best Reseller hosting provider so you can start your own web hosting company.

Best Reseller Hosting

Rank Web HostingPricingReseller PlanReviewsRating
1HostGator$19.95/moAluminumHostGator Reseller Review4.9 out of 5 stars (4.9 / 5)
2inmotion reseller reviewInMotion$15.39/moR-1000SinMotion Reseller Review4.8 out of 5 stars (4.8 / 5)
3namehero reviewNameHero$9.57/moStartup HeroNameHero Reseller Review4.7 out of 5 stars (4.7 / 5)
4SiteGround$49/yrBasic ResellerSiteGround Reseller Review4.2 out of 5 stars (4.2 / 5)
5A2 Hosting$13.19/moBronzeA2 Reseller Hosting Review4 out of 5 stars (4 / 5)

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