What is Reseller Hosting, and How Does it Work?

Parul Saxena

Parul Saxena

Senior editor

Parul Saxena

Chief editor

Last updated: June 25, 2021

Imagine that you lease a large plot of land from the landowner. You then divide up this land and its resources into sections and rent out each section to various individuals or businesses. You pay a fee to rent the land from the owner, and you charge your renters a monthly fee to rent space from you. The difference between what you pay to lease the land and what your renters pay you is your profit. Now imagine that instead of land, you’re renting server space from a web hosting company. This is reseller hosting.

Hosting

Working of Reseller Hosting

1. Reseller Hosting Defined

To engage in reseller hosting, you must first purchase wholesale server space and resources such as bandwidth and hard drive space from a web hosting provider. You then allocate portions of the server and its resources to each customer. Each customer gets their own cPanel access so that they can manage their account themselves.

While operating as a reseller, you aren’t obligated to identify yourself as such. Instead, you can brand yourself as a web hosting company. In this way, your customers never know that their hosting services aren’t coming directly from you.

2. How Does Reseller Hosting Work

In order to compete with the big hosting companies, reseller hosts usually package their hosting services with other features. For example, they might offer web design and development, online marketing, or SEO. Additionally, reseller hosts tend to cater to specific niches. So rather than trying to market to all businesses, they might focus their marketing on selling to realtors or restaurants. In this way, they can offer to host that specifically addresses the needs of these niches and can compete with the big guys.

Benefits of Reseller Hosting

1. Avoid the Complexity of Web Hosting

Web hosting is a complicated business. It requires that you build and maintain servers and rent or construct data centers at various locations worldwide with reliable upstream providers. You also have to hire and maintain qualified employees, set up and maintain various software programs, introduce billing systems and backup solutions, etc. Fortunately, reseller hosting bypasses all this complexity. Someone else takes care of all the complex setup, and all you have to do is focus on acquiring new clients.

2. Minimum Operating and Investment Costs

With reseller hosting, you don’t have to spend any money on server software, hardware, data center infrastructure, or employee salaries. All of this is taken care of by the web host whose services you’re reselling.

3. Recurring Revenue Stream

If, for example, you’re a web designer, then you would normally get a one-time payment for building a client’s website and possibly, some smaller payments later on for doing maintenance or updates. However, what’s great about web hosting is that it’s a service without an expiration date. Plus, it needs to be renewed monthly or annually. As a result, you get a steady stream of income.

How to Start Your Own Reseller Hosting Business

1. Market Research

Research the market and choose a reseller hosting program that meets your requirements and needs. For example, GreenGeeks reseller hosting plans come in three different tiers, each with a different resource allotment. You can then choose the package that has the resources you need.

2. Hosting Package

Set up the hosting packages you want to sell. This will involve configuring their technical specs such as disk space, bandwidth, etc., and giving each package a name. You will also need to set their prices.

3. Website and Marketing

Create a good user-friendly website for your hosting company which will help customers to know more about your services. Once you create a website create a marketing plan to drive traffic to your website and start making sales.

4. Technical Support

Lastly, you’ll need to figure out who is going to provide technical support for your clients. In general, most web hosting companies will not provide support to your clients, so the responsibility lies with you. Therefore, you’ll need to either purchase hosting that includes “white-label” support or find a way to outsource technical support. Unless, of course, you want to provide the support yourself. However, this isn’t recommended as it means you’ll need to be available 24/7.

Final Thoughts on Reseller Hosting

If you already offer web services like design or development, adding reseller hosting to your package of services will benefit you greatly. It’s also a great source of revenue on its own because it’s fairly simple to set up. Just keep in mind that you should try to find a specific niche to cater to; otherwise, you’ll get lost among the big web hosting companies.

Parul Saxena
Parul Saxena is a writer and editor with experience in various genres of writing in various industries. A content creator who loves to write on the latest technologies and their impact on businesses and everyday life.

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