If you’re a tech enthusiast who wants to start a profitable online business, learning how to make money with reseller hosting should be at the top of your priority list.
This particular money-making venture is one of the passive means of making money that I recommend for those who want the heavy lifting to be done for them while they just do minimal work.
It entails providing the appropriate services to the appropriate customers, as well as excellent branding and a unified marketing message.
In this article, I will be revealing to you how to make money with reseller hosting. The best reseller hosting providers will also be covered in this post.
What is Reseller Hosting?
Reseller hosting is when a business buys hard drive space and bandwidth from a host and leases it out to its clients. The reseller buys the host’s services in bulk and then resells them to clients, potentially profitably.
When you work as a reseller, you can present yourself to your customers as a legitimate web hosting firm. You’d be “buying and selling” the services of a well-known web host.
Essentially, you acquire a reseller hosting package and then use the assigned resources to offer hosting to your customers. This enables you to generate a healthy profit because you can charge any fee you want to your clients.
Each of your clients will have access to their own Control Panel, allowing them to manage their accounts independently.
How to Make Money with Reseller Hosting
Nobody starts a business without thoroughly considering all of the options. As a consequence, this piece will offer you a broad overview of everything you need to do know on how to make money with reseller hosting.
1. Pick a Perfect Niche
Being a web hosting reseller, you’ll compete with tens of thousands of other businesses, including some of the biggest in the world.
To thrive in this field and maintain consistent growth, you must first research the market before developing a service that people seek.
Instead of appealing to a broad audience, narrow the focus of your services. Pick a niche where you can outperform your competition in terms of service.
Most reliable hosting resellers cater to a specific demographic. You can design your services, offerings, and promotion to appeal to the deep requirements of your selected niche by focusing on a specialized audience.
As a result, as a specialist hosting service, your prospective revenue may be limited. You are not, however, attempting to compete with the large hosting firms. This implies your costs will be cheaper, which will boost your profit margins.
It’s critical to discover a niche that’s large enough to maintain your business when determining who to target. A tool like Google Trends may be useful in this case. You may use Trends to see how many people are searching for terms related to your target market.
2. Identify Your Unique Selling Proposition
You’ll be able to choose the add-on features and hosting features for your company once you’ve done your homework. You will be able to select from the hosting company’s bundled features.
This choice will aid you in choosing a hosting package. With your specialist package, you can integrate dedicated, WordPress, or VPS hosting.
With this in place, it will be easy for you to speak and market to your target audience. It will also help to differentiate you from the pack of other hosting businesses offering a similar product.
Your unique selling point could be based on quality customer support, fast server speed, vertical scaling, or enough resources for a hosting fee.
3. Create a Business Strategy
Web hosting resellers can create a reseller profile in minutes and be fully operational.
Since it is so inexpensive to start, the majority of these businesses fail even before they hit the ground running. This is mainly because many people start without a plan and with unrealistic incomes and work goals.
Customers aren’t usually eager to patronize a new firm. Create a marketing strategy for your business. To build a strong business plan, figure out how much money you’ll need to get the enterprise up and working, as well as how much you’ll need for the first year.
Since the web hosting niche has so many competitors, you’d be better off focusing on a niche or certain type of customer base, such as local firms.
Whether you’re beginning from scratch or wanting to upsell hosting services to existing clients, you should focus on developing a distinct brand that customers will be proud of and will recommend to their peers.
Learn how to conduct minimalist branding and make sure that all of your company’s resources represent your brand.
The webpage design, logos, colors, typography, blog graphics, ad text, social media toolkit, and email signature are all things to consider.
By implementing your unique selling point into your branding, you can make the most of it.
5. Develop Your Business Fine Prints
Online templates can help you create proposals, agreements, and terms of service.
Make sure you prepare these important documents carefully and get them checked by a lawyer for veracity.
Create an informative email that includes URLs, access codes, and email addresses to send to customers after they’ve signed up.
The first line of the email you send to customers after they sign up for a hosting package should be bolded and highlighted and it should contain a link to your legal pages for emphasis.
6. Select a Reliable Web Hosting Company
The web hosting service you choose as a reseller is the most important investment you can make. You should keep in mind that you are selling their services to your customers, therefore the web host’s quality needs to reflect your own.
Furthermore, the rate must be affordable. In other words, you need to make more money than you spend on services.
The business plan can help you figure out which hosting companies are most likely to provide the best services for your new business.
For the greatest outcomes, choose a hosting company that perfectly aligns with the resources and capabilities that your clients require while excluding any unnecessary frills.
It may be tempting to choose the provider with the most up-to-date features or unrestricted memory, bandwidth, and disk space. Nevertheless, if your clients don’t require these capabilities and resources, this isn’t good value for money.
When starting a new enterprise, it can be challenging to foresee what your target audience will require. It will be beneficial to research your competition in this case. You can also choose a supplier that provides a variety of bandwidth options.
I would also advise paying attention to uptime when choosing a supplier. If your hosting provider’s servers go down, your clients’ websites will also go down with them.
If you pick the wrong hosting provider, your client’s search engine optimization may suffer as a result of switching to your reseller firm. I suggest using a service that offers an uptime guarantee wherever possible.
Reduce your list of potential hosting companies to a few, then approach each one to outline your needs and plan. This communication will also enable you to determine how quickly the organization responds to inquiries.
7. Make a Pricing Decision
This can be challenging. You’ll be competing with businesses that charge as low as $1.99 and others that demand hundreds of dollars.
Split down your infrastructure and do some pricing analysis after that. Calculate the entire cost of operations, as well as the costs of servers and other factors.
Websites that need e-commerce security certifications, as well as enterprises that demand more space and bandwidth, will be charged extra.
8. Begin Your Reseller Hosting Company
After you’ve decided on a provider, you’ll need to create your hosting packages. Even though this method varies, you should choose a web hosting provider that includes Web Host Manager as a basic feature.
WHM is a must-have tool for running a reseller hosting company. WHM can help you with a variety of activities, like setting client accounts, tracking bandwidth usage, and creating web hosting plans.
Login into the WHM dashboard and select Add a Package to create a package. The resources you intend to feature in your hosting plan can then be specified.
You’ll also require a method of promoting your hosting packages to potential consumers. You may add a landing page to your present WordPress site if web hosting is an obvious extension of your current offerings.
The built-in features of WordPress can be used to construct landing pages. Using a dedicated page builder like Elementor, nevertheless, you will find it easier to develop appealing landing pages.
Another alternative is to open a dedicated e-commerce store for your web hosting company. WooCommerce is a very popular platform for selling products and services online.
9. Be Wary About Overselling
Overselling in web hosting refers to the behavior of offering too many web hosting plans such that the overall resource demand exceeds the server’s capability.
Most web hosts do it because they don’t anticipate all clients to use their hosting packages to their full potential. Unfortunately, if they do, the server will be overwhelmed.
This can result in slow efficiency and possibly the inaccessibility of a client’s website. It is not conducive to business. Always strive to leave 35% of your disk space free when starting your reseller firm.
This unused 35 percent can be used for existing clients who require additional capacity, as well as to ensure that all resources are never exhausted. Any costing and forecasting you do should include that 35 percent redundancy.
10. Offer 24/7 Customer Service
Another crucial tip to remember when launching a reseller hosting company is to give excellent, round-the-clock service.
Even the biggest web hosting reseller firms don’t offer 24/7 sales support, but support on a regular and consistent basis, and done round the clock. You can’t break through it in this sector without 24-hour support, which is the standard technique.
Customer service may make or break your business as a tiny hosting provider. If you give excellent customer service, you’ll be able to distinguish yourself from your direct competitors – and possibly even large hosting providers.
The best method to publicize your business is to have happy customers. It’s tough to imagine a business nowadays that doesn’t profit from having an internet presence.
In a society where everyone needs web hosting, each happy customer has the potential to refer your business to a large number of people. It’s critical to deliver a positive customer experience if you want to expand your business.
The best customer service begins the moment someone visits your website. If they have concerns, they should be able to get answers quickly.
This could include asking questions via live chat or conducting their research utilizing self-help resources like FAQs.
In an ideal world, your customer service should be accessible in a variety of ways. Telephone help, live chat, and a devoted ticketing system are all possibilities.
Trust seals like the BBB certified, PayPal seal, McAfee, and a PCI company seal certify that you’ve completed all of the e-commerce requirements for selling online and that you’re running a legitimate firm.
Also, to give your organization more credibility, include images of yourself and your employees to demonstrate to potential clients that your website is run by actual people they can trust.
12. Promotional Possibilities
Marketing is the most challenging component of being a web hosting reseller. This is because there are hundreds of web hosts offering services on the Internet, making it difficult to stand out.
You can select the best marketing channel for you based on your skills, resources, and expertise. Make the most of every opportunity to promote your new company.
While decreasing advertising costs, spread the word through social networking platforms, blogs, and online message boards.
Decide on a plan for generating quantitative campaigns. If your budget is tight, consider employing more natural approaches until you can afford to invest in sponsored marketing and advertising.
One of the best strategies to get clients and advertise your web hosting reseller service is to build a website and flip it along with hosting.
Many people want to own successful websites, and if they do, hosting will be required. They will be unable to ignore a free month of hosting backed by an offer for a year of hosting.
If you have a massive budget, you can utilize Adwords or other promotional tactics to grow your firm quickly.
How do shared and reseller hosting differ?
You split the server i.e. internet space with other users when you use shared hosting.
When you choose a shared hosting plan to host your website, it is stored alongside a bunch of other sites. You must divide server resources like disk space, memory, CPU time, and data.
Reseller hosting, on the other hand, is the act of acquiring a large web hosting bundle from a hosting firm and then reselling it to others in smaller pieces.
In a reseller hosting deal, you typically pay a fixed price for server space and divide the hard disk and bandwidth capacity allotted to you by the main hosting firm into smaller parts.
What is reseller hosting with a white label?
White label reseller hosting is an approach whereby you can brand your web hosting reseller website with your brand identity.
Even if you’re not hosting your customers on your hardware, you can still brand your hosting firm any way you like.
You can brand your clients’ control panels, name servers, and billing software with your company logo if you use reseller hosting with white-labeled control panels, name servers, and billing software.
This will give the impression that you are the one providing the server, Cpanel, etc when in reality you are basically white labeling another company.
Which reseller hosting companies are the best?
The success or failure of your website is influenced by the quality of your web hosting provider.
Don’t know which option to pick? Don’t be alarmed. The list that follows should suffice.
You should now have a better idea of what a hosting reseller is and how to make money with reseller hosting after reading this post.
As you’ve seen, reselling hosting services can be a lucrative company and a viable way to earn from the growing web hosting market.
The demand for hosting is expanding in tandem with the demand for new websites, making this a profitable business enterprise.
However, if you want to establish a positive reputation and gain client trust, you’ll need to partner with a respectable hosting provider.
It for this reason that I recommend that you start with Bluehost’s Reseller Club if you’re serious about making money with your reseller hosting business.
Thanks for reading.