Reselling web hosting is a great way to set up a brandable business with low startup costs and excellent profit potential.
In this post we will look at the pros and cons of reselling web hosting and how you can create a new business with this model or use it as an additional income stream to your current venture.
What Is Reseller Web Hosting
Reseller web hosting is where you buy web hosting from a large hosting company and resell their packages to your own clients under your own company name.
There are many hosting companies that sell reseller web hosting so deciding on which one to choose can be difficult.
If you already use a web hosting company for your own websites and are happy with their services it might be worth checking if they offer a reselling service.
To see the web hosting company that I recommend check out the link below.
See my number 1 choice for reseller hosting
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What Are The Benefits Of Reseller Web Hosting
So why should you choose to sell reseller web hosting? Below you will find some of the main advantages of reseller hosting.
- Low start up cost
- Easy to create your own brand
- Quick to set up
- Support from a larger company
- Not location dependant
- Good profit margin
These are some of the advantages of this business model. Keep reading to see each one in more detail.
Low Start Up Cost
Starting this type of business has very low start up costs. Once you have chosen your reseller hosting package you will have just one monthly payment.
On top of the hosting payment your costs will be dependant on the equipment that you need to buy. You might need to buy a PC or a laptop for example. If you already have these things then you can keep your costs down.
Another way to keep costs low is to work from home. This will save on office rental costs.
Easy To Create Your Own Brand
Inside your reseller hosting dashboard you will be able to create individual hosting accounts for your clients with your own company branding.
This means your clients will only see your company name and not the name of the hosting company you are using.
Quick To Set Up
Once you have decided which reseller hosting company you are going to use it is very quick to get set up.
Your reseller account can be set up very quickly and you can start adding clients as soon as you have some.
Support From Larger Company
As you are reselling web hosting from a larger company you will get their support if you run into any issues while you are running your business.
Having this support is very useful especially in the early stages of your business.
Not Location Dependant
As this business is totally online you can run your business from anywhere. You don’t need to be local to the web hosting company or your clients so you have the freedom to live and work wherever you want.
Good Profit Margin
The overheads in a web hosting reselling business are low so your profit margin is high. You can set your own prices to reflect the profit you need from each client.
Once your monthly hosting payment is covered, all new clients from that point are profit.
How Do I Buy Reseller Web Hosting
Purchasing reseller web hosting is very quick and easy to do. If you have bought any kind of web hosting before it is exactly the same.
Usually the hardest part is deciding which reseller hosting company to use but I have done the research for you (see my recommended web hosting company here).
Once you have clicked the link through to the hosting company website you then select ‘RESELLER HOSTING’.
Click on ‘COMPARE PLANS’.
Now you will see 4 different hosting plans.
Choose the plan that you want (either of the two cheapest plans will probably be fine when you first start).
Then you fill in your details and within a few minutes you have your hosting.
Should I Buy The Cheapest Reseller Web Hosting?
Buying the cheapest reseller web hosting is not always the best way to go. Always do your own research and read reviews or listen to recommendations (check out my choice of reseller hosting here).
Always make sure it is a reliable company and what they are offering suits your needs both now and when your business grows in the future.
How Do I Make Money Reselling Web Hosting?
To make money selling web hosting you need to find some clients who want your hosting service.
Each client that you get pays you a monthly or yearly hosting fee (at whatever price you set). The amount you pay to your hosting company stays the same so once you have one or two clients you will have probably covered your own hosting costs.
Once your costs are covered, everything else is profit.
How Do I Find Clients
How you find client for your web hosting business depends on any other services that you provide.
For example – if you offer a web design service you can then offer a web hosting service to the same clients. This adds an ongoing monthly income to add to any money that you make designing websites.
If you don’t offer a web design service you can reach out to local businesses to see if they need your services, advertise through pay per click ads (such as Google and Facebook) or build your own website for your hosting service.
How Much Can I Make Reselling Web Hosting?
How much you make will depend on how you market your reselling business. The profit margin is very high so you don’t need too many clients to cover your costs.
For example – if you pay £20 a month for your reseller hosting package and charge your clients £10 per month you only need two clients to cover your costs.
What you charge is entirely up to you and how you package your own hosting plans.
Offering additional services (such as web design and maintenance) can increase the amount you earn compared to just offering hosting services.
Is Selling Web Hosting Worth It?
Whether or not this is the business for you depends on your own skills and circumstances. Iif you are a WordPress web designer this is definitely a service you need to be offering your clients.
If you don’t have web design clients it will be harder to sell your hosting services but due to the low start up costs is worth a try.
I hope this has given you some ideas to make some additional income and if you give it a try I wish you the best of luck with your new venture.
Find more ways to make money in your spare time here.
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