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Everyone gets excited when they want to build their own website, get domain name booked for their business or a blog & then picking the best possible web hosting service. Same is NOT the case when we talk & decide to start web hosting business.
All of us may have obvious reasoning – but, web hosting business is not a bad idea for many of us including me. That’s the reason why this article needs to be shared…
Especially, if you’ve a business or a freelancer that deals with Web Designing, Web Development or is an agency or a webmaster; with even a handful of clientele looking for web hosting solution.
What is a Reseller Hosting?
Reseller Hosting is a type of shared hosting (Shared server or Virtual Private Server) that allows web professionals offer better hosting management control to their clients using multiple CPanel hosting accounts; ensuring greater profit margins.
Through Reseller Hosting, the webmaster / agency receives entire control over the section of a server’s resources such as Disk Space and Bandwidth, which can then be divided into smaller packages and sold to multiple clients depending upon their requirements.
The best part of Reseller Hosting is most of such service provider companies offer white label solutions where, you can completely create your own brand’s presence for your own clients.
Who should use Reseller Hosting?
Reseller hosting is endorsed largely by Web Designers, Web Developers or System Integrator since it provides them with the flexibility to offer web hosting as an add-on service to their primary business.
It is also an effective way to make a little more profit as well as offer an extra service to your clients under one roof since, the billing aspect of your business can be done under your own brand Name.
What if I can’t offer Technical Support?
This was the main concern for me and after repetitive discussions with ResellerClub, they re-assured me repetitively over the same matter.
Server administration and support will be handled by the Reseller Hosting provider; this allows web professionals or agencies to focus on building their primary business and yet offer the best tech support required from time to time.
What are the benefits of using Reseller Hosting?
Well, if you have thought about it earlier then you already know. The main concerns of getting into the web hosting business are: the infrastructure, bandwidth, and staff, skills to manage these, marketing & sales, support & what not! BUT,
Reseller Hosting takes care of most of the server-side attention by themselves, leaving us to only take care about getting the needed clients to host their websites.
One of the other larger benefits of owning a Reseller Hosting package is the advantage of consolidation. A Webmaster / Freelancer with Reseller Hosting, can have a majority of his/her clients hosted on one server, and thereby managing them could be lot easier through a single control panel.
They also offer various payment gateways so that you or your clients can pay for the services purchased online.
You can customize all aspects of web hosting business such as website front-end and dashboard with your company logo and names.
Not just that, all the Reseller Hosting packages come with Softaculous Script Installer which allows one-click installations of blog software, shopping carts or guest book scripts at client side.
How much profit should you extract from this business and from your client varies for each person however, here is an example which will help you get a better clue
A sample Linux reseller hosting package
- 50 GB Web Space
- 1000 GB Bandwidth
- Host 40 Domains (based on resources consumed)
- Price – Rs. 1150/month
Now, if you have above package then webmasters cost to host per domain would be 1150/40 = Rs 28.75 per month per websiteWhereas, minimum current market price for web hosting per domain per month is approx. Rs 170 per month (or even more)
This means it safely has profit potential of more than 450% or you can conservatively keep these margins at about 300% – especially when you don’t have overheads to run this particular business.
Important points to note
An accomplished hosting service provider will offer an additional feature along with the Reseller Hosting package includes – Email Hosting, Commercial Control Panels and Support for multiple programming languages.
It is essential to check what type of Control Panel or language support does a company offer. CPanel or Plesk enabled with a WHM control panel should be your first choice since these are the most widely used hosting control panels, and support multiple plugins.
An important feature to look out for is free WHMCS. It is required since it helps you handle billing, support, domain names & customer management and a lot more.
Before you buy a Reseller Hosting package, make sure to do the home work whether you are expecting enough clients to at least recover your package costs.
If you buy any Reseller Hosting plan and then if you’re unable to sell those hosting slots to your clients on immediate basis then eventually you will end-up paying ‘more per website’ than you actually needed.
It’s a tricky question and cannot be answered 100% until we finish testing all the Reseller hosting providers.
But, recently I am in continuous discussion with ResellerClub on various aspects of web hosting and domain name registration after we had an informal meeting at WordCamp 2013 in Pune, India. ResellerClub is also one of the top domain registrar & web hosting companies in India, placed at first place.
They have offered Reseller Hosting services for the past many years, and I eventually found them reliable enough to recommend, especially after seeing couple of my friends using the same service.
For me, it was very pleasing to see they offer Linux and Windows reseller hosting along with choices for server locations to choose either from USA or INDIA. Additionally, they offer International program as well where server locations are available for USA, Brazil, China, Germany, Indonesia, Spain, Russia, Spain and Turkey.
They also do have ongoing unique promotions that can be used in sync with the hosting account & then can be offered to your clients.
I will update again if I find a better alternative meanwhile, you can go ahead & check out ResellerClub hosting packages. Have you considered buying a reseller hosting to start web hosting business, but had some doubts? If yes, then leave your comment and we can discuss them.