What is Reseller Hosting? And How Does It Work?

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Reseller hosting is a service provided by a web hosting provider that lets a person or business sell web hosting services as their own.

Providing a web hosting service to clients is usually the focus of a web hosting company. But, with reseller hosting, you become the host and you determine how you will charge and support your clients.

Reseller hosting is a great way for freelancers and businesses to offer web hosting services.

This article aims to be a guide on reseller hosting, how to start, and offer tips on how to make reseller hosting profitable.

What is Reseller Hosting?

Reseller hosting is a type of web hosting service that lets you buy hosting resources from a hosting provider and resell them to your own customers.

A reseller acts as a middleman between the hosting provider and the end users.

Infographic explaining what is Reseller Hosting — *What is Reseller Hosting? Infographic*

The Role of Reseller Hosting Providers

Usually, the hosting provider will handle the technical side of web hosting. This includes server maintenance, security, and software updates.

In contrast, resellers buy a big hosting package from a provider and then splits it into smaller packages to sell to many customers.

Resellers sell and support their customers, and hosting providers maintain their web hosting. The combination makes reseller hosting an easy way to enter the web hosting market.

Key Features and Benefits

With reseller hosting, entrepreneurs or businesses can offer web hosting services and earn revenue without having to maintain their own infrastructure. Further, they can set their own prices, features, and manage their customer accounts independently.

Some key benefits of reseller hosting include:

Access to a web hosting infrastructure
Free technical support
White labeling
Easy content and client management
Low barriers to entry

Sell hosting using your own brand with a powerful Reseller Hosting plan, now with more resources and faster storage using NVMe SSDs at no extra cost.

How Does Reseller Hosting Work?

Most reseller hosting packages work on a standard wholesale basis. As the reseller, you may then resell those packages under your brand to your own clients.

Some web hosts will charge a flat monthly fee as well as a fee for the services. Other web hosts may instead charge on a pay-as-you-go basis.

The cost of these packages is usually less than that of a regular VPS. At InMotion, the packages start at only $15.99 per month*, which is only a small increase from shared hosting.

Here’s a step-by-step breakdown:

Select and signup with a reliable web hosting provider.

Set up a reseller account to access wholesale prices.

Customize your hosting packages.

Add your own branding.

Resell web hosting services at a markup.

You can often set your own pricing and conditions as long as you work within the host’s own conditions.Then, it’s a matter of registering a new account and allocating disk space or bandwidth to your hosting packages to start.

It might seem complicated but it isn’t.

Luckily, with reseller hosting, you don’t have to maintain the hardware or hosting software yourself. Good web hosts will already have the software set up with specific reseller packages that can make getting started easy. You would, then, only need to create an account for each new client you acquire.

Benefits of Reseller Hosting

Reseller hosting offers a multitude of benefits that can significantly impact your business. Let’s dive deeper into an array of key features and benefits that empower entrepreneurs and businesses to flourish.

Low Barriers to Entry

There is a definite learning curve to reseller hosting if you haven’t managed web hosting before. But, If you have managed shared hosting or something similar, it’s a small step up from there with a little extra administration.

If you have used cPanel to set up your own website, the process is much the same. Only this time, you’re setting up multiple hosting accounts from your own master account.

Cost-Effective Access to a Hosting Infrastructure

Reseller hosting saves you from buying and maintaining servers and hardware. This allows you to enter the hosting market at a fraction of the cost.

You also don’t need to worry about managing a data center or staffing system administrators. Rather, by purchasing a reseller hosting plan, you get all the benefits of an expert systems team monitoring your server. They can ensure that resources are always available to you and your customers.

Free Tech Support

Many parent hosting companies provide technical support to resellers. Thus, leaving you to focus on your core business activities.

InMotion Hosting offers 24/7, US-based support. Our team is always available to answer your questions or can help you launch your account. And you can choose the contact style that works best for you: phone, chat, or email. With 24/7 availability, support is there whenever you need them.

Additional Revenue Streams

As a reseller, you can expand your service portfolio by offering extra value-added services. Some examples include

You can register domain names as a Sub-Reseller with InMotion Hosting’s reseller accounts. This means your customers can go directly to you for all their domain needs.

This diversification can further enhance revenue opportunities.

White Labeling and Brand Building

White Labeling is a crucial feature of reseller hosting that allows you to resell web hosting services under your brand. This includes customizing your hosting packages, control panels, and customer interfaces with your brand design.

White labeling helps to build your unique identity and reputation in the market.

Easy Billing and Client Management

Reseller hosting provides tools for managing clients, billing, and resource allocation. These features streamline the administrative tasks associated with running a hosting business.

When you sign up for reseller hosting, you will typically gain access to an admin console in cPanel or WHMCS (Web Host Manager Complete Solution). Either console allows you to allocate disk space and bandwidth allowance per month.

These panels also contain tools necessary for reseller hosting, including

Setting up new accounts
Email addresses
Domains
Other typical features of web hosting

With your own reseller account, you can easily install and get your choice of cPanel or WHMCS running to help you manage all your customers.

InMotion’s Reseller Hosting also provides access to sell domains and manage the business end using the Web Host Manager Complete Solution (WHMCS) software. Check out InMotion’s Reseller Hosting plans for more information.

Customizable Hosting Packages

Create your own hosting plans to resell to clients from your administrative console. You can pick from various hosting options, such as flexible hosting, WordPress, NVMe SSD hosting, and others. Then, you may charge whatever the market can sustain and pocket the profit.

Additionally, you have control over every aspect of web hosting, including admin rights, traffic, and advertising.

If you have ever set up your own shared hosting for a website, setting up reseller hosting is similar. Except, instead of setting up your own domain, email, and website, you set up the framework for your clients to do it.

Scalability

Most reseller hosting accounts are scalable so you can begin small and expand as your client list grows. Since hosting is virtual, it’s faster to scale up, and you can usually save on any extra admin costs.

How to Start Reselling Web Hosting Services

1. Create a Business Plan

If you plan to charge people for your services and aim to make a profit, you need to have a business plan in place. Your plan should not only outline how your business operates but also how it will grow.

2. Choose a Reseller Hosting Plan

You should then research the market for the reseller hosting that best fits your needs. Make sure that what you choose matches the needs of your target clientele.

Below we’ll go over what to look for when finding the best Reseller Hosting provider.

3. Set Your Prices and Packages

Determine the pricing structure for your hosting services. Here are some factors to consider:

The cost of the reseller hosting plan
The value you’re providing to clients
The competitiveness of the market

Create different hosting packages based on resource allocations, features, and pricing tiers. Read on to learn more about different pricing and packaging strategies.

4. Branding and Customization

Now, you can start customizing your hosting packages and control panels with your branding elements.

This is also a good time to get familiar with the features that you will be giving to your subscribers.

You will want to set up your management software so that you are ready to take care of your customers. Then, you’re ready to start reselling your hosting space.

5. Set Up a Website and Online Presence

Create a website to show your hosting services and share important information with potential clients. Include details about your packages, pricing, support, and contact information.

6. Market Your Reseller Hosting Business

Develop a marketing strategy to reach your target audience. Some channels to consider when promoting your hosting services include

Social media
Online advertising
Content marketing
SEO

Highlight the benefits, features, and competitive advantages of your hosting packages.

Learn more about marketing strategies for reseller hosting below.

7. Provide Customer Support

Set up a support system to assist your clients when they run into trouble. Consider giving your customers different support channels like email, live chat, or a ticketing system.

Ensure prompt and reliable support to build trust with your customers. And, be considerate of the kind of support your hosting provider supplies.

InMotion Hosting offers 24/7 technical support, an advantage for doing business overseas.

8. Billing and Payment Processing

Be sure to set up your billing process in your control panel. Consider the security and reliability of your payment gateway to ensure smooth transactions.

9. Launch and Onboard Clients

Provide clear instructions on how clients can sign up, access their accounts, and use your hosting services. It’s good to offer comprehensive documentation and tutorials to help clients get started.

10. Monitor and Maintain Server Performance

You will need to work with your parent hosting company to address any server-related issues fast. Partnering with the right hosting provider is crucial to track server performance, uptime, and security.

11. Continue to Improve and Expand

Make a point to gather customer feedback to find where you can improve your services.

It’s also helpful to keep up with industry trends, new technologies, and changing customer demands. That way, it will be easy to spot opportunities to expand and add value.

Finding the Best Reseller Hosting Provider

If you have your business plan in order, then the next step is to choose the best reseller hosting provider for your needs. When you’re considering a web hosting service with reseller plans, make sure to check for the following:

Does the reseller have a solid reputation for reseller hosting?

The hosting provider’s performance, support, and security set the stage for what you can deliver to your customers.

Does the hosting service have a plan that meets your budget and hosting needs?

The bare minimum a reputable reseller hosting should provide includes features like

High-performance servers with reliable NVMe SSD storage
Dedicated IP addresses
Custom/vanity nameservers
Softaculous installation scripts
Strong security

InMotion Hosting provides all these features with our Reseller Hosting plans.

Do they have a good software interface to manage your reseller account?

InMotion Hosting includes cPanel and WHMCS for free.

If you’re not satisfied, do they have a money-back guarantee?

InMotion Hosting offers a gracious 90-day money-back guarantee on terms 6 months and longer.

Do you have access to technical support? What kinds of support services? Phone/email/chat?

InMotion Hosting provides 24/7/365 support directly to the Reseller through Live Chat and Tickets. Phone support is available for plans R-2000N and higher.

As a reseller, you are responsible for providing customer support to your clients. Even so, InMotion offers a comprehensive online support center with thousands of articles covering a wide range of topics. This can be a great resource for resellers and their customers alike.

If your business grows and requires an upgrade, does your parent host provide upgrade options for your hosting service?

InMotion Hosting makes it easy for our customers to upgrade their plans as their business grows.

Choosing a service is often a matter of personal preference and perspective, but this checklist should help lead you to a reseller host that will provide the solution you need.

How to Make Money as a Reseller

Although no one can promise Elon Musk levels of riches with reseller hosting, it is a great way to make extra income. Especially from clients attracted by the complete packages a web designer can offer: site setup and hosting in one.

In this section, we go over some strategies to maximize your profits as a reseller of web hosting.

Pricing and Packaging Your Plans

Your base income may depend on the wholesale price you pay to the host and the maximum price your market can sustain. But, there are also plenty of strategies resellers can use when pricing and packaging their plans.

Here are some to consider.

Markup Hosting Costs. Buying hosting resources from a hosting provider at wholesale and then markup the cost in your price. This accounts for not only the hosting costs but also the cost of website maintenance, software updates, and customer support.

Packaging Additional Services. Offering website maintenance and some support services as add-ons or premium packages. Bundling services can generate extra revenue and provide more value to customers.

Tiered Pricing and Upselling. Providing a number of plans with different levels of pricing and features. This allows you to upsell clients to higher packages as their needs grow. As a result, you can increase average revenue per customer and encourage your clients to upgrade over time.

Long-Term Contracts and Renewals. Offering special deals for yearly or multi-year contracts to garner a loyal customer base. By giving discounts or rewards to clients who choose long-term contracts, resellers can make steady money.

It’s ok to start small when you first launch your services and scale up only when you need to. In fact, this can keep business costs low and maximize your profits.

Marketing Strategies

Bragging about yourself can be hard to pull off in a way that is genuine and trustworthy to prospective clients. And, even if your services, expertise, and support speak for themselves, no one may know to listen.

Here are a few marketing strategies that can help you use your authentic voice and build your customer base.

Word-of-Mouth Marketing (WOM). To start, don’t be afraid to reach out to friends and family about your new business. They can be your greatest brand ambassadors even if they are not in the market to buy your services. Encourage them to spread the word.

Then, as you build your clientele and reach out for feedback, consider asking for testimonials. Encourage your happy customers to share their experiences online.

SEO Marketing. Resellers also find success by mastering the art of SEO (search engine optimization). Customers rely on Google search results when shopping online or researching their options. Thus, the higher the ranking and the more your reseller business appears in search, the better your odds at landing more customers.

SEO and keyword research might seem a bit like alchemy at first. But, there are many tools and tips available to maximize your SEO results through simple research and sound technical habits.

Referral Programs and Affiliates. You can incentivize your existing customers to refer your hosting services to others. Some incentives can include discounts or credits for each successful referral they make.

In affiliate marketing, work with influencers or website owners to promote your hosting services. For each customer a partner refers to you, they can earn a commission.

Future Trends in Reseller Hosting

The future of reseller hosting is being shaped by several significant trends.

For example, automation and artificial intelligence (AI). Both are becoming more important in streamlining server management tasks and customer support. Embracing AI can enhance your services and improve customer experiences.

The future of the web hosting industry is also influenced by the rising importance of website security and data protection. Cybersecurity threats are becoming more sophisticated. Thus, reseller hosting providers should focus on robust security features.

Meanwhile, e-commerce sales are expected to grow 8.9% during 2023. More people using e-commerce and online businesses means there is a big market for reseller hosting services.

With these trends, reseller hosting presents opportunities for differentiation and growth. If resellers adjust to new technologies and what customers want, they can succeed in standing out in the field of reseller hosting.

Understanding reseller hosting is easy and a great opportunity for those looking to start a web hosting business. It’s important to learn how reseller hosting works and do your research to find the best reseller hosting option to suit your needs. In doing so, you’ll be able to create a great business reselling hosting, provide a solution for your clients’ needs, and earn some money in the process.

By partnering with a reliable Reseller Hosting provider like InMotion Hosting, freelancers can provide web hosting, domains, email services, and other website-related solutions to their clients.

Begin your journey into the world of Reseller Hosting and set your business up for success with our comprehensive Reseller Hosting Product Guide!

*Pricing is subject to change at any time. Please see website for current pricing.

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