Reseller hosting is a business where you purchase server space from a hosting company and then rent that space to clients. Essentially, you’re acting as a middleman between a hosting company and a customer. The money you make from this type of business results from the difference between what it costs you to buy server space and the price you’re charging your customers.
It sounds simple, but to make money with reseller hosting there are a few things you need to take into account:
1. Your Niche
Reseller hosts can’t compete with the big guys in the hosting industry. These companies are just too big, and they can offer pricing and advantages that you won’t be able to compete with. That being said, you’ll likely use these companies to get your reseller hosting.
The best reseller hosting businesses are ones that serve a niche clientele. Choosing a niche market to focus on, in addition to extensive marketing, will help you construct brand recognition and become known as the go-to-host for your specific area of expertise.
In a niche market, you have the advantage of having a smaller set of needs to attend to with your business. You’ll also have less competition as you won’t be in direct competition with large hosting companies. Furthermore, you’ll be able to provide superior customer service because you’ll understand the needs of your niche market. Some markets you might want to focus on are home business owners, affiliate marketers, local businesses, and WordPress Bloggers.
2. Your Hosting Provider
Once you know who your target market will be, it’s time to find a hosting company that offers a reseller hosting package. You will need to find a hosting provider that can fulfill your needs and requirements, so you need to make sure you know what those are.
The first thing you need to do when looking for a hosting provider is to find out what kind of services the web host offers. The ideal provider will take care of all the backend management for you. This should include setup and maintenance of physical hardware and network infrastructure, as well as security monitoring.
The next thing you’ll need to decide is what kind of hosting you want to offer. Are you going to offer just one type of hosting, like shared hosting, or will you offer VPS, cloud, and dedicated hosting as well? Next, you need to decide how much bandwidth and storage you’ll require. Lastly, you’ll need to decide how much support you’ll need. It’s important to review what kind of support each host offers because your clients will want you to solve issues quickly.
3. Your Hosting Plans
To run a successful reseller hosting service, you’ll need to offer packages that meet the needs of your customers. For this reason, the plans you offer need to be based on client needs rather than the resources and features of your reseller account.
Make sure to thoroughly research your niche market, so you have a good understanding of what they need from a hosting service. This should include things like the amount of disk space and bandwidth they need, what kinds of software they use to build their websites, how many email accounts they’ll use, and their security needs. It’s a good idea to put together various packages to serve as many different types of clients as possible.
4. Your Selling Practice
A key thing to avoid in reseller hosting is overselling. Overselling means selling more web hosting plans than can be handled by a server. This often happens when sellers believe that their customers won’t fully utilize their hosting plans.
This is a risky gamble because you could overwhelm the server leading to slow site performance or websites going entirely offline. This wouldn’t be good for business. For this reason, you should always aim to leave 30% of your disk space free.
You can make money from reseller hosting, provided you find the right niche. Once you’ve done that, you need to choose an appropriate hosting company and create hosting plans that meet your clients’ needs. Lastly, avoid overselling, and you’ll be ready to launch your reseller hosting service.