What Is Reseller Hosting? How To Get Started

What Is Reseller Hosting Featured Image

If you’re looking for a way to make some extra money, or if you want to start your own web hosting business, reseller hosting may be the perfect option for you.

Reseller hosting is a type of web hosting where you, as the reseller, purchase a reseller hosting package from a web host and then sell that package to your customers.

This can be a great way for new businesses to get into the web hosting industry, or for existing businesses to expand their offerings.

In this blog post, we will define what is reseller hosting, how it works, and what you need to get started.

How Does Reseller Hosting Work?

At a very basic level, to start your own web hosting company you need:

  • A data center with racks of servers and equipment to store and serve all of your client websites and applications
  • A team of network engineers and system administrators to manage the servers and keep them running smoothly
  • A sales and support team to help market your company and sell your services

While starting a web hosting business can be very lucrative, it’s not cheap.

So, how would a web designer or a small business owner like you start a web hosting firm without spending millions of dollars?

By becoming a reseller!

Reseller Hosting

Reseller hosting is a form of web hosting in which you, as the reseller, rent space on a web server and then sell that space to your customers with your own branding.

It’s the same concept as buying wholesale.

You buy a product in bulk at a discounted price, and then you sell it to your customers with a markup.

This way, you can make a profit without having to spend a lot of money on overhead costs.

What Are The Benefits Of Reseller Hosting?

Low Cost

Established reseller hosting providers have huge data centers with millions of servers.

Reseller Data Center

Having this amount of servers greatly reduces the overhead costs (maintenance, operating, cooling, etc) which the providers then pass on to their resellers in the form of discounts.

And the more you buy, the greater the discount!

This means that you can get started with reseller hosting for a very low cost, especially when compared to building and operating your own data center.

No Maintenance Hassle

Another great benefit of reseller web hosting is that you don’t have to worry about any of the maintenance or the operating of the server hardware.

You don’t have to worry about hiring a technician to perform anti-virus scans or anything like that.

Server & Website Maintenance

Things like keeping the servers up and running, applying security patches, and ensuring that the network is running smoothly, are all taken care of by the hosting company.

So you don’t have to worry about setting up physical hardware or performing maintenance. 

Create Your Own Brand

When you become a reseller, you can create your own brand and build your business around it. 

Your customers will see your brand and not the brand of the hosting service provider.

This can be a great way to build loyalty and create a lasting relationship with your customers.

Complete Control Over Your Customers’ Accounts

With reseller hosting plans, you get an administrative control panel from your web hosting provider that allows you to create and delete customers’ different accounts, determine how much disk space and server resources each customer can use, and much more.

Cpanel Homepage

On top of that, you have the ability to assign each customer their own cPanel to manage their account.

From these control panels, they can create email accounts, install WordPress, and do anything else that they need to do to run their website without having to contact you.

Customize Your Packages

As a reseller, you have the ability to customize your hosting plans to fit the needs of your customers.

For example, you may have one customer who only needs a small amount of resources, used to serve the website and another customer that needs a large amount of resources.

Custom Hosting

You can set your own prices, create different package levels, and add or remove features as you see fit.

This flexibility allows you to create the perfect hosting solution for your customers, and it also allows you to stay competitive in the marketplace.

Low Risk

Starting your own reseller hosting business is a very low-risk investment.

Since you’re not buying the servers or the infrastructure, you don’t have to worry about a lot of the expenses that come with running a hosting company.

Low Risk

And if things don’t work out, you can simply cancel your reseller hosting account and walk away. 

It’s that easy.

What Are The Disadvantages Of Reseller Hosting?

Limited Control

Even though you have complete control over your customers’ accounts, you are still limited by the terms of your agreement with the reseller hosting provider.

Limited Control

For example, you may not be able to make changes to the details of the server configuration or add new features without their approval.

This can be frustrating if you’re trying to offer a unique hosting solution to your customers or want to be able to customize the service to better meet their needs.

You Rely On The Hosting Provider

Since you’re not in control of the servers, you are completely reliant on the hosting provider.

If they have a problem with their equipment, your business will be affected.

In other words, you are at the mercy of the hosting provider, and this can be a big disadvantage, so choose your web hosting service provider carefully.

Require Technical Knowledge

Even though you don’t have to worry about the day-to-day tasks of running a web hosting company, you will still need to have some technical knowledge to be a successful reseller. 

Require More Technical Knowledge Than Shared Hosting VPS

For example, you may need to troubleshoot customer problems, and you may need to provide some level of server management or offer technical support to your customer.

If you have limited technical skills, you will either need to learn these skills or hire someone who can do it for you.

How To Become A Hosting Reseller?

Research The Market

Before you invest any money or time in starting a reseller business, you need to make sure there is a market for your services.

  • Who will you be selling to?
  • What are their needs and wants?
  • How much are they willing to pay?
  • What are your competitors offering, and how can you beat them?

These are all important questions that you need to answer before you move on to the next step.

Find A Reseller Web Hosting Provider

Once you’ve done your market research and you’re ready to become a reseller, the next step is to find a hosting provider.

Find A Web Hosting Provider

As we mentioned earlier, not all web hosting providers are created equal, so you need to do your homework and find a reputable one that offers the features and support you need (more on that later.)

Marketing, Marketing, And Marketing

You need to let people know that you exist and that you are selling the services they need.

The best way to do this is to create a website and use search engine optimization to find customers that are searching for what you offer. You can also use social media and pay-per-click advertising as well.

Marketing

You can even contact potential customers directly and offer them a free trial or a discount.

The important thing is to get the word out there and start generating sales.

What Is Included In A Reseller Package?

The features and services included in a reseller package can vary depending on the web hosting provider you choose.

bluehost-Cpanel

However, there are a few main features that come with most reseller hosting packages:

  • A control panel, such as cPanel or Plesk, which is used to manage your customers’ hosting accounts
  • A billing system, such as WHMCS, which is used to automate the billing and provisioning process
  • A white-labeled control panel, which allows you to brand the control panel with your logo and company name

How To Choose The Best Reseller Web Hosting Company?

There are a few things you need to consider when choosing a web hosting reseller, such as:

  • High Uptime Rates
  • Good Customer Support
  • Generous Storage and Bandwidth
  • A Variety of Features and Services
  • The Ability to Brand Your Business
  • Scalable Hosting Packages
  • Good Reputation

FAQs

What Is cPanel Reseller Hosting?

cPanel reseller hosting is a type of web hosting where the reseller rent server space from a hosting service provider at a discount and then sell it to their customers at a higher price.

Buy Or Rent Your Own Server

The reseller account manager has complete control over their customers’ accounts and can set their own prices, features, and services.

They are also able to provide cPanel control panel services to their customers.

What Is The Difference Between Shared And Reseller Hosting?

The difference between shared and reseller hosting is that with shared hosting, the customer shares the server space with other customers, while with reseller hosting, the customer has their own server space that they can use to host their own customers’ websites.

Is Reseller Hosting Profitable?

Reseller hosting can be very profitable if done right.

Save More Money

The key is to find a web hosting company that offers you a discount on their services, so you can sell it at a higher price and make a profit.

You can also add value to your services by offering additional features and services that your customers will be willing to pay for.

What Is An Example Of A Reseller?

An example of a reseller is a web design company that sells web hosting services to their customers.

The web design company would rent server space from a web hosting provider, then help their customers set up their websites, email accounts, etc.

The web design company would then charge their customers a monthly fee for these services.

Conclusion

If you’re looking for a way to get into the web hosting business, reseller hosting is a great option.

Just make sure you do your research and find a web hosting provider that offers you a discount on their services.

From our experience, Siteground is a great option for reseller hosting accounts, as they offer a variety of features and services, as well as a very low price.

We hope this guide has helped explain what is reseller hosting and how it works.

 

Matt-Author-Img

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 30,000+ other subscribers and get SEO test results sent straight to your inbox.

moz sidebar

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

As Seen On...

Search Engine Journal
New York Post
ahrefs brand