How To Resell Web Hosting: 5 Best Reseller Services To Try Out (2024)

Learning how to resell web hosting is not as difficult as you may think. Whether you are looking to build your own web hosting business or want to make some extra money on the side, reselling web hosting can help you achieve both outcomes.

A reseller web hosting business can be likened to renting out certain rooms of your home or perhaps running an Airbnb (Air Bed and Breakfast).

By making certain rooms of your home available to clients, you will be able to add a new stream of income without hiring contractors to build new rooms.

However, to succeed, you want to learn the ins and outs of web hosting reselling.

Drawing from our years of experience in the industry and thorough research of emerging trends, we’re well-positioned to offer expert insights and recommendations that will help you make informed decisions about your reselling endeavors.

Today we’ll discuss how you can make money from reselling web services, the best reseller hosting services, key reseller features you should look for, and outline steps to resell web hosting.

Best Reseller Hosting Providers  

1. Cloudways (Editor’s Choice)

Overview

Cloudways is a cloud hosting platform that delivers fully managed hosting and allows clients to launch web applications on different cloud servers.

Features

2. A2 Hosting

Overview

A2 Hosting is one of the oldest and most popular web hosting companies. It has five hosting plans, including shared hosting plans, managed WordPress hosting plans, VPS, reseller and dedicated hosting.

Features

3. HostGator    

Overview

HostGator is one of the cheapest website hosting providers in the website hosting industry. It has three web hosting packages: Hatchling Plan, Baby Plan, and Business Plan, all of which offer free domain registration and free SSL certificates.

Features

4. Bluehost

Overview                             

Bluehost is a web hosting service that powers over 2 million websites all over the globe. Not only does Bluehost offer web services, but it also offers SEO services such as content creation, marketing training, and graphic design.

Bluehost has four hosting plans: Basic, Plus, Choice Plus, and Pro, all of which offer custom themes, WordPress integration, and round-the-clock customer support.

Features

If you are looking to save a few coins, you can get a 63% discount when you purchase a plan from Bluehost by clicking our link.

5. SiteGround

Overview

SiteGround is a hosting provider that currently hosts more than 2 million websites around the world. SiteGround offers WordPress Hosting, WooCommerce Hosting, and Cloud Hosting, and it has three shared hosting plans:

Features

6 Steps To Resell Web Hosting

1. Choose A Reseller Web Hosting Partner

Instead of signing up for more server space from your favorite hosting provider, take some time to think about your reseller business and the kind of services you want to provide to your clients.

The route an established web development agency will take may be completely different from the route someone starting a hosting company will take.

Apart from the affordability of a web host, important features to look for in a hosting partner include the software, hardware, and operating system, as these will make your clients’ experiences more enjoyable and efficient.

Before choosing a hosting partner, you should ask yourself the following questions:

The answers to these questions will help you compare ratings and reviews of hosting providers to find the plan that suits your needs and those of your clients.

2. Build Your Hosting Services

You probably know what your clients want, but put yourself in their shoes and imagine looking for a new hosting plan.

What features and services would capture your attention? Would you want free SSL certificates or automatic backups? Would you need add-on domain names?

If you choose Linux hosting, you will likely use cPanel and WHM to create and manage your hosting plans. If you have created and managed a web hosting account before, you probably know how control panels work.

However, as a reseller, you will now have access to WHM, which allows you to backup or transfer customer data, monitor and protect your server, and create cPanel accounts for your clients.

Before you set up your web hosting business, you need to handle the organizational tasks. If your hosting provider supports white-label hosting or private nameservers, you will want to update your nameservers and add your branding and logo.

WHM should direct you to where you need to go, but if you are having difficulty with this, you can click on Basic Web Host Manager Setup in the menu to the left.

Then, add your nameserver and contact information and scroll through the menu on the left to adjust the customization options for the cPanel interface.

Once you have done all these, name your hosting plans and allocate specific limitations and resources. You can do this by clicking on Packages in the WHM menu and following the prompts.

3. Set Your Prices And Configure The Billing System

You are not running a charity organization, are you? As the name suggests, reselling means that at some point, money will change hands.

Whether you are expecting to turn a profit or offering friends and family discounts, you need to determine how much you will charge for your services and how you will notify clients when their payments are due.

When you figure out how much you will charge for your services, an automated billing system will take care of all the billing functions.

Most reseller plans that include WHM and cPanel also include WHMCS, which automates all aspects of your hosting business, from generating invoices and collecting payments to sending reminders and covering client management.

4. Support Your Customers

As a web hosting reseller, the support you are able to provide your clients will either make or break your business. Providing stellar customer support is one of the best ways to make your business stand out.

Actually, when your customers are satisfied, they can help spread the word about your business.

Customer support starts immediately after a customer lands on your website. If a customer has any questions about your services, they should be able to reach a representative via the live chat function.

Moreover, your site should be easy to use, and customers should not have any trouble signing up for services.

Most hosting parent companies include customer support as part of their reseller packages, meaning they handle all support requests.

You can decide to let the parent company handle all the support requests, support the parent company’s support with your own team, or let the parent company handle technical support while you handle other requests.

5. Set Up Marketing

Your marketing efforts should be focused on a specific niche instead of marketing to anyone and everyone. First, you need to determine how you are going to reach potential clients.

For example, will you use Facebook ads and strategically-targeted landing pages? Do you have a budget for social media and search engine advertising?

Figure out the approach you are going to take and create measurable campaigns. If you have a limited budget, it would be best if you take an organic approach until you have enough money to invest in advertising campaigns and paid marketing.

6. Profit And Scale     

By now, you should be ready to start your hosting business. You have found your niche, built your website, laid out your service offerings, found a reliable hosting reseller, and started marketing your services.

One of the perks of a reseller hosting business is that your customers will have a high CLV (Customer Lifetime Value). Provided that you offer high-quality customer service, your customers will stick with you for as long as you are in business.

Key Reseller Hosting Features You Should Look for

Your parent host will determine the hosting features you can access and pass on to your clients. Some important features to look for when sifting through hosting providers include:

What Is Reseller Hosting?

Reseller hosting is a business model whereby hosting providers allow some or all of their web services to be sold by third-party organizations or individuals.

This kind of hosting allows third-party organizations and individuals to act as web hosting providers without building, operating, and managing a web hosting infrastructure.

As a web hosting reseller, you can rent a hosting server, brand the server with your own company, and sell that server space to clients.

Because everything is white-label, it is as if you are running your own web services company; however, your clients will never find out that it is not you. You can create your own hosting plans, offer additional features like website and email backups, and take payments.

How Do You Make Money Reselling Web Hosting Services?

To make money reselling web services, you start by purchasing a reseller hosting plan from a reputable provider.

Whether you are looking to start your own hosting company, offset your hosting costs, or earn an extra buck, you can quickly achieve these outcomes with a reseller web hosting business.

The web hosting industry has a low cost of entry compared to starting from square one as a hosting provider. Even with a handful of clients, the right hosting plan and the right pricing strategy can translate into a regular stream of income.

Once you understand how your goals of generating revenue fit with other business priorities (such as service quality), you should consider your market trends, customer profile, revenue targets, and competition, as these will help you price your hosting plans in a way that generates high amounts of revenue.

Of course, you want to start off slow, but ensure that you research and understand profit margins. A study the New York University found that computer service organizations can expect to earn a 6 percent profit margin.

Yes, you will want to cover your costs while remaining competitive but do not shy off from pushing for more profits.

How Does Reseller Hosting Differ From Affiliate Programs?

Reseller hosting and affiliate programs are two different ways to earn money in the web hosting industry, but they operate under distinct models.

If you have been looking for a way to make passive income by recommending services or products, then you have probably come across the terms “resellers” and “affiliates.”

At their core, resellers, and affiliates share many similarities; however, the mechanics required for each are worlds apart.

This kind of hosting involves reselling a service under your own brand name, but you do not have to stress over the fulfillment of that service. On the other hand, affiliate programs involve sending clients to businesses in exchange for a commission on the sale.

How Much Does It Cost to Start A Web Hosting Company?

The amount of money you need to start your own hosting company depends on your initial customer accounts and how many customers you are seeking to serve.

While a domain name and web hosting are standard expenses, here is a breakdown of other expenses you may face:

Introductory hosting plans are often set up on a shared server environment; however, you can resell hosting resources on more expensive VPS (Virtual Private Server) or dedicated server plans. You can also resell hosting packages as a master reseller.

Moreover, some web hosting providers use alternative hosting strategies where you can take a percentage discount from a variety of options (for example, GoDaddy), buy credits that you can redeem later for various services (for example, SiteGround), or purchase individual shared hosting accounts for resale (for example, Hostwinds).

Advantages Of Reseller Hosting

If you are looking to start a web hosting business, here are some of the benefits you can expect:

Disadvantages Of Reseller Hosting

Even though reseller hosting offers many benefits, here are some downsides of reselling hosting:

FAQs

What Is the Difference Between Shared and Reseller Hosting?

Shared and reseller hosting are two types of web hosting, each catering to different needs and purposes. Shared hosting accounts are typically intended for one owner.

In addition, they often lack a management interface like cPanel.

Reseller hosting is, however, distinct. With a reseller hosting account, you can basically resell hosting via a platform such as Cloudways, which offers hosting from five IaaS providers: AWS, GCE, Linode, Vultr, and DigitalOcean.

Can Agencies Make Money by Reselling Hosting Services?

Yes, agencies can make money by reselling hosting. Reseller hosting is an excellent method for organizations to generate revenue.

Instead of establishing your own hosting, you can simply resell hosting from a third party for a profit. You may adjust your rates properly and provide enhanced service to your customers.

Which Reseller Hosting Service Do We Recommend?

Reseller hosting allows you to package and sell hosting without bearing any infrastructure costs, at your own price, and under your own brand. It is the perfect solution if you want to extend your range of services or if you are looking to supplement your income.

If you plan to resell hosting with a reseller hosting package, remember that you need to build your hosting services, set your prices, configure the billing system, support your customers, and focus your marketing efforts on a specific niche.

We have also highlighted five reseller web hosting partners from which you can choose that have the best hosting plans. If we had to choose one, we’d choose Cloudways. With super fast hosting and excellent customer service, it’s our preferred hosting provider for reselling.

Our #1 Recommendation: Cloudways

• Editor's Choice

Overall Rating:

Load Time

Support

Disk Space

Security

Pricing

Key Features:

• WordPress Hosting
• E-commerce hosting
• Free migrations
• 99.99% uptime guarantee
• Built-in caches
• Free SSL
• Dedicated firewalls

SIGN UP TO CLOUDWAYS

Article by

Matt Diggity

Matt is the founder of Diggity Marketing, LeadSpring, The Search Initiative, The Affiliate Lab, and the Chiang Mai SEO Conference. He actually does SEO too.

Want to rank easier, higher and faster?

Sign up and join 100,000+ other subscribers and get SEO test results sent straight to your inbox.

Register

"One of the most effective SEOs I've ever met"- Cyrus Sheppard

As Seen On...