How To Start A Reseller Web Hosting Business From Scratch

Reseller Hosting June 18th 2021

If you have ever considered diving into the world of web hosting and want to establish a profitable venture with low upfront costs, reseller hosting is an excellent option to explore. By becoming a reseller, you can purchase hosting resources from established hosting providers at wholesale prices and then resell them to your clients at a markup, allowing you to generate revenue without having to manage the intricate technical aspects of running a full-fledged hosting company.

Also, The global web hosting services market size is projected to grow from $108.54 billion in 2023 to $395.84 billion by 2030, at a CAGR of 20.3%. (Source: Fortunebusinessinsights.com) 

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What is Reseller Hosting?   

Reseller hosting is the type of web hosting in which the clients can purchase various web hosting plans in bulk from the web hosting service provider. The web host then resells the web hosting plan categorizing it into parts. 

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What Is A Reseller Web Hosting Business?

A reseller web hosting business is a type of hosting service where individuals or companies purchase hosting resources from an established web hosting provider and then resell them to their own customers under their own brand. Essentially, resellers act as intermediaries between the original hosting provider and the end-user clients.

A reseller web hosting business is considered lucrative for several reasons, making it an attractive option for aspiring entrepreneurs. Unlike traditional web hosting businesses that require substantial upfront investments in server infrastructure and other operational costs, reseller hosting offers a more cost-effective and accessible approach.

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Why Is A Reseller Web Hosting Business Lucrative?

A traditional web hosting business requires a huge investment in buying the server, and infrastructure, setting up employees’ workspace, and systems. On the other hand, reseller web hosting trends in 2024 eliminate all of these costs and still allow you to enjoy its benefits.

Here are three key reasons why a reseller web hosting business is lucrative:

1. No Initial Investment
2. Ease of Setting Up
3. High Returns

Therefore, if web hosting is the field for you, the benefits will definitely outweigh. All you need is an interest in this field, a passion to not just start but also run a business.  

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How Does Reseller Hosting Work? 

The reseller purchases a large hosting plan from a primary web hosting provider and then subdivides this plan to create smaller hosting packages that they sell to their clients. Additionally, the objective of web hosting reseller is to generate income based on the earnings gathered from customers who buy your restructured hosting packages.  

Here’s a step-by-step explanation of how reseller hosting works:

1. Buy a Reseller Hosting Plan  

The reseller purchases web hosting from a larger web hosting provider. Therefore, this plan incorporates a set amount of bandwidth, disk space and other features.

2.  Create Hosting Packages 

The reseller differentiates and creates the various packages as per the business needs. Therefore, each package can be easily tailored with different amounts of disk, bandwidth, and features to meet the needs of different clients.

3. Manage Client Account 

Users utilized control panel like WHM-Web Host Manage, which helps to manage and create their client account. This helps clients to easily set up new accounts, allocate resources and manage client support.  

4. Set Pricing and Services 

The reseller can easily set their private price for the hosting packages they use for. Also, they can increase value by providing additional services like domain registrations, website design and technical support.

5.  Client Support 

The hosting reseller is mostly responsible for providing support to their customers. This helps users to seamlessly rely on complex obstacles on the support team.

6. Billing and Payments

The reseller manages and organizes payments from their customers. This includes managing invoicing payments and systems gateway easily and also seamless transactions.  

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Steps To Start A Reseller Web Hosting Business

Starting a reseller web hosting business requires careful planning and execution. Here is a step-by-step guide to help you become a web hosting reseller:

 

 

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Step 1: Set Relevant Business Goals

If you’ve already attempted setting up a business before, you’d know what goal setting is. For the best reseller web hosting business, we suggest setting pointed business goals and defining how you’d package your services.  

For instance, what services would you sell – just hosting? Or maybe add on like SSL certificates, domain names, or even hosting consulting services for your client, etc. This will help you define a niche within hosting. 

Next, define the goals in terms of customer acquisition and expected business growth. This will keep you on track. 

Step 2: Define Your Client

Once you’ve finalized your service offering, define your client/target audience. You can basically target anyone with an online business or a website, irrespective of the scale of their operations and the nature of their business. Most of the reseller hosting providers serve web developers, bloggers, online designers, online businesses, etc.  

Be specific when defining your target client’s persona. This will include the client’s demography, geography, and industry. Once you know your target client, it will be easy for you to plan and structure your hosting plans tailored to the clients’ needs. 

Step 3: Choose Your Reseller Web Hosting Provider

Choosing your parent reseller web hosting provider is the MOST IMPORTANT part of your hosting business. The features you want to offer to your customers must align with what your provider is offering you. While choosing the parent hosting provider, we recommend you check: 

• What do they provide – shell access or WHM panel access? 
• Do they offer a free WHMCS license?
• Do they provide the option to create a custom package in the WHM panel? 
• How many sites can you host in your reseller hosting?
• Do they provide the option to take the backups and restore the backup?
• Do they offer an upgrade option in case your package allocated disk or bandwidth gets used to its maximum capacity?

Step 4: Get Started – Website & Branding

To become a hosting reseller, select a name for your company that accurately describes your goals. Keep it memorable and create a logo that complements the brand. It is the first aspect of your company that customers notice. So, give it some thought! Your brand defines your long-term engagement with your customers.

Next, create a website that is clear and simple for your potential customers to utilize. Create effective call-to-action buttons so that customers may purchase your services with only one click. A trustworthy SSL certificate, a secure website, and effective billing mechanisms should all be in place.

Step 5: Finalize Your Plans & Packages

After carefully selecting your hosting provider and purchasing a suitable plan, the next crucial phase to resell hosting involves refining your web hosting reseller plans and prices. It is essential to create attractive packages that provide value to your clients while ensuring a reasonable profit margin, as determined in Step 1. Convince (and offer) your clients that they are getting the best web hosting deal that they can think of!

Pro Tips for Crafting Your Hosting Packages: Enhance your plans with enticing add-ons, such as a complimentary 30-minute consultation to assist clients with their web server hosting needs.

Step 6: Offer 24*7 Support To Your Clients

Providing exemplary customer service is a pivotal aspect that we strongly advocate and strive to incorporate into our businesses as well. Ensuring an exceptional customer experience not only fosters lasting relationships with your clients but also encourages them to endorse your services within their circles. 

Emphasizing the significance of delivering top-notch client support cannot be overstated. We firmly urge you not to compromise on anything less than round-the-clock assistance for your valued clients.

Step 7: Market Your Business

Congratulations on finalizing your business plan and goals! Now comes the exciting part: reaching your target clients. For the best reseller hosting business, you have three effective strategies to consider. 

Option one involves leveraging paid marketing channels. You can run targeted paid ad campaigns to reach potential clients. This approach allows you to reach a specific audience and gain visibility quickly.

Step 8: The X Factor (s)

Trust stands as the paramount pillar of your business. To cultivate confidence in your clients, ensure you proudly display a trust seal obtained from BBB, as it serves as a tangible testament to your commitment to meeting all the requisites of a reputable online enterprise. Let trust be your defining X factor! 

Furthermore, it is essential to grasp the ever-evolving market needs and diligently enhance your offerings. Perpetually assess your competitors and scrutinize their offerings to gain valuable insights. By refining and augmenting your own products or services, you can make them more appealing and alluring.

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Summary Of How To Start A Reseller Web Hosting Business From Scratch

Starting a reseller web hosting business from scratch requires minimal initial investment and can be straightforward. Define clear business goals and strategies, identify your target market, and select a reliable server provider.

Customize your offerings and sell them on your website at a profitable margin. Employ creative marketing techniques to attract customers quickly. Analyze competitors, prioritize excellent customer support, and continuously expand your services to meet client needs. Now is the opportune time to embark on this venture if you have a passion for web hosting.

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Frequently Asked Questions   

Q 1: What is Meant by Reseller Hosting?

Ans: Reseller hosting is a web hosting service where an account holder (the reseller) buys bulk hosting resources from a hosting provider and then resells them to individual customers. The reseller acts as a middleman, creating and managing smaller hosting accounts for their clients, often adding their own branding and support services. 

Q 2: Is Reseller Hosting Shared?

Ans: Yes, reseller hosting is typically based on shared hosting. This means that multiple reseller accounts share the same server resources (CPU, memory, disk space) managed by the primary hosting provider. Each reseller can allocate a portion of these resources to their own customers. 

Q 3: Who is the Strongest Reseller?

Ans: Determining the “strongest” reseller hosting provider depends on various factors such as reliability, customer support, pricing, features, and customer satisfaction.

Q 4: What is a DNS reseller?

Ans: A DNS reseller is a person or entity that sells domain name services (DNS) to their customers. This includes registering domain names, managing DNS records, and offering related services such as domain privacy protection and DNS management tools. 

Q 5: Can I resell domains?

Ans: Yes, you can easily resell domains.