Just like people need to rent a house to live, websites need to rent a server to stay online. But not all sites can afford to spend a large sum to buy a physical dedicated server for their personal use.
Reseller hosting allows website owners to keep their websites online while minimizing costs on their end. You can monetize this demand for server resources by signing up for a reseller hosting program. This assigns you a monthly bandwidth you can resell as a dedicated server to a website owner.
But how do you get started with a reseller hosting program, and what do you need for it? In this article, you’ll learn everything about reseller hosting plans and reselling dedicated servers.
- Is it Possible to Resell Dedicated Servers?
- What is the Value of Dedicated Servers?
- Things to Consider When Reselling Dedicated Servers
- Where to Get Dedicated Servers for Reselling
- Resellers Panel
- Where to Resell Dedicated Servers
- Facebook Marketplace
- What You’ll Need to Resell Dedicated Servers
- How To Resell Dedicated Servers: Step-By-Step Instructions
- Can You Make Money Flipping Dedicated Servers?
- Frequently Asked Questions
- Similar Tutorials to Check Out
- Wrapping Up
Is it Possible to Resell Dedicated Servers?
Yes, it is possible to resell dedicated servers, although it is a pretty uncommon side hustle. In the case of a dedicated server, the entirety of its bandwidth is allocated to a single client. It is used to install, host, and manage their applications, data, backup services, and network.
Some people enter the market to purchase a pre-owned physical dedicated server. You can resell these kinds of servers and make a profit, but only if you find a way to acquire and refurbish them.
What Kinds of Dedicated Servers Sell Well?
People usually look for the best features and value for money when looking at dedicated servers. Most web hosting companies offer 99.9% uptime, but delivering on this promise is what counts.
Pricing your products competitively makes a massive difference in the types of clients you attract. Offering prompt customer support and adding extra services, such as automatic backup or a free SSL certificate, can help you stand out from the crowd and have a bulletproof business model.
What is the Value of Dedicated Servers?
A dedicated server can be a valuable tool for people looking to enhance their website. eCommerce site owners and bloggers need hosting to improve the security, scalability, and performance of their websites. The amount of time it takes for the site to load and the overall experience are all determining factors in whether a site does well.
For customers, a dedicated server is more expensive than a shared server or virtual private servers.
You can make $100 renting out such servers per month. Extra services can boost the income over $1000.
Buying a new dedicated server costs anywhere between $2,000 and $10,000, depending on its power and features. If you’re looking to sell physical servers, offering competitive rates for high-demand server resources can be a good place to start.
Do Dedicated Servers Lose Value Over Time?
Given the rapid pace at which technology is evolving, a server manufactured in 2023 can handle a high traffic website much better than one from 10 years ago. The value depreciates over time, but you can still make a profit by marketing older dedicated servers to clients looking for web hosting options on a budget.
That said, being a reseller of virtual dedicated servers by signing up for extra space from a provider can help you beat the depreciation of hardware.
Things to Consider When Reselling Dedicated Servers
Here are some of the things you should consider before reselling dedicated servers:
- What Are Your Goals? If you’re planning to resell dedicated servers virtually, have a clear idea of the kind of customers you want to serve, down to the finest details.
- Source of Servers: You’ll need to have a source of mildly used or a returned physical dedicated server so that you can resell them, unless you own them personally.
- Price: List the servers at a competitive price, regardless of whether they’re hardware or virtual subscriptions.
- Operating System: Having your own operating system is a must if you’re leasing bandwidth connection from data centers.
Where to Get Dedicated Servers for Reselling
Here are sources from which you can rent or lease dedicated servers to sell to your clients, as well as a few places where you can sell physical servers.
In the case of online reselling, you don’t need to buy, store, and set up servers on your own. You’ll only rent the space from a parent company and resell it under your own brand name.
These companies allow your customers to have sub-accounts on the server, and some even offer billing and customer support services with specific plans.
Resellers Panel has been around for 20 years and remains one of the top reseller hosting companies.
They have a score of 3.3 on Trustpilot, with 62% 5 star reviews and 27% 1 star reviews.
They offer several packages for resellers at wholesale prices. Resellers Panel also offers cPanel as well as free reseller plans for providers to take up. The cPanel plan comes at a low monthly cost of as little as $7 per month and provides access to a plethora of resources to customers.
The company allows you to freely resell online domains, virtual private servers, and dedicated servers for your customers. The UX is praised for being easy to work with, even during complex builds.
- Fees/Commission: A dedicated server starts at $80 for the first year. There are no other charges, recurring deposits, or sales proceeds that they charge.
- Payment Methods: Card payment.
ServerMania is praised for having some of the best prices around. The web hosting company has a rating of 3.9 on Trustpilot and offers amazing customer support.
Their dedicated server pricing starts at $50 a month. On the other hand, high-bandwidth servers for high-traffic sites start at $695 a month, which you can also sell to your customers.
As a dedicated server reseller with ServerMania, you’ll be able to offer clients a unique hosting configuration based on their needs. For example, video game servers, VPN users, eCommerce clients, and storage servers all receive a unique configuration and services.
ServerMania has customer support active around the clock, helping users out in any situation. Once you receive an order on your reseller site, you contact the company and receive the details of the accounts that you can send to your clients.
- Fees/Commission: There are no fees for resellers.
- Payment Methods: Online methods only.
Where to Resell Dedicated Servers
Now, let’s take a look at some places where you can sell refurbished physical servers.
eBay is one of the biggest e-commerce sites on the planet and is second in terms of monthly visitors behind Amazon, making it a great option to resell a dedicated server.
You can post your server at a flat rate or set up a bidding process on eBay. But remember, you’ll have to arrange and cover the shipping fees. Shipping a large and heavy item like a dedicated server can be difficult since you’ll have to make sure it isn’t damaged on the way.
The hassle of shipping a dedicated server can also increase costs for sellers, but you can circumvent that by telling the customer that they’ll have to cover shipping costs.
Signing up and posting up to 250 listings is free, but eBay charges a basic amount to upgrade it to a bidding process or for more than 250 listings.
- Fees/Commission: eBay charges a percentage of the listed price depending on the nature of the item (generally 13.25%) plus $0.30.
- Payment Methods: You’ll receive sales proceeds in your bank account after they’re processed by the eBay Managed Payments System.
One of the best features of Facebook Marketplace is that it doesn’t charge any commission and lets you keep 100% of your final selling fee.
Since Facebook allows people to directly message the buyer, you might need to negotiate the final price. Then, you’ll have to set up a meeting with the buyer or arrange for shipping. What’s convenient is that you can hand it off to the buyer and not have to worry about spending a lot of money on shipping since the ads show preference for local buyers.
- Fees/Commission: No fees or commission are charged for any sales.
- Payment Methods: As discussed directly with the buyer.
What You’ll Need to Resell Dedicated Servers
Here’s a quick checklist of what you’ll need to make sure you’re handling this side hustle the right way:
- Your Own Hosting Site: Several websites with reseller programs require you to showcase your own hosting service site to be a dedicated server reseller.
- Storage and Maintenance of Servers: If you’re looking to resell physical models, you’ll need to find solutions for storage and maintenance of the used servers.
- Marketing Strategy: You’ll need to come up with a way to market your dedicated servers, whether it’s an online endeavor or a physical server business.
- Suitable Plan: If you’re working as a white collar reseller, you should have a cost effective plan with the parent company that allows you to make a profit and provide desirable services.
How To Resell Dedicated Servers: Step-By-Step Instructions
Here, we will be discussing a step-by-step approach to becoming a dedicated server reseller. Only some reseller hosting companies offer website building functionalities. Even then, it is very basic in most cases.
To enhance your appeal to potential customers who haven’t built out a site yet, you can partner with developers and offer an A-Z experience. But, we’ll leave that to preference since it isn’t an essential part of reselling a server.
Below are the steps you should follow to get started with a software-based resale program:
Step 1: Build Your Own Web Hosting Site
To become a reseller, you’ll first need to build and manage your own site. The reason behind this is that most dedicated server reseller plans only require you to have a website where you’re offering hosting services under your own brand name.
Step 2: Apply for a Hosting Plan
Rent or lease a hosting plan from a reseller that you think offers the best features and value for money.
Step 3: Market Your Business
Launch ads, build a social media following, and make use of marketing tools to spread the word about your brand.
Step 4: Offer the Login Details to Your Customers
Once you receive an order, it is time to deliver their login details. You might need to create a sub account or inform the parent company of a new customer to receive this.
Now, let’s take a look at the steps you should follow to physically resell a renewed server:
Step 1: Take Pictures of the Server
You can use your phone to take pictures of the model, but remember to adjust the lighting and angles so that the hardware is clearly visible.
Step 2: Upload a Listing
Create a detailed listing where you mention the model number, features, and condition of the server. Be as detailed as you possibly can, as this makes for fewer follow-up questions from prospective clients
Step 3: Ship the Product / Arrange a Meeting
You’ll need to arrange shipping for remote buyers or set up a drop-off meeting with a local buyer if needed.
Step 4: Confirm the Payment
If you’re using eBay, you don’t need to worry about the payments since they are processed by the site after the customer pays. But for other sources, you’ll need to collect the payment yourself. Make sure to collect the payment before shipping if it’s a remote buyer.
Can You Make Money Flipping Dedicated Servers?
First, let’s address the question of reselling a server CPU. In this case, it can be difficult to make a lot of profit since people won’t be paying a lot of money for used hardware. But you can expect to at least break even if it is in good condition.
Finding a used CPU in good condition can also be challenging unless you’re constantly on the lookout or have your own business buying used servers.
Being a virtual reseller has the potential to generate a significant amount of profit since you’ll need little overhead to get started. Your only investment will be the subscription plan and keeping your own website up, which can help you make a sizable profit.
What is a Dedicated Server Resale Business?
A physical dedicated server resale business would entail reselling a server CPU for profit after acquiring it at a lower cost. You will need to consider storage and repair expenses in this case.
Remote resellers offer their clients dedicated web hosting by renting out a server from a parent company, which has the infrastructure built on a wide scale. They essentially act as the middleman, leveraging the reseller programs launched by these parent companies.
Is Reselling Dedicated Servers a Good Way to Make Money?
Selling refurbished CPUs might not be the best way to make money, considering all the effort and shipping costs involved. If you’re eager to get into the web hosting space, consider setting up your own business.
This allows you to avoid the hassle and overhead expenses of managing a dedicated server.
Frequently Asked Questions
What is the Best Type of Dedicated Server to Resell?
There is no general answer for the best dedicated server to resell. Some high traffic sites might need a reliable web hosting service with a lot of bandwidth, while someone else might need enhanced security and backup for their site.
Do You Need to Know Coding to Resell a Dedicated Server?
Not necessarily. You can build a website without any knowledge of coding, and you can market your business without having to learn coding too. Most reseller hosting companies don’t require you to know any programming to subscribe to their programs.
Similar Tutorials to Check Out
Below are some more reselling tutorials you might want to check out if you liked this article:
- Resell Software: Building software takes a ton of effort. Reselling? Not so much. Click here to learn how to make money reselling software.
- Resell VPS Hosting: Is server hosting the secret to a successful side income stream? Click here to find out.
- Resell Electronics: Can reselling electronics turn into a profitable business? Click here to know more.
Reselling dedicated servers can seem overwhelming if you don’t have any experience with them. But, with a few days of patient research and analyzing the needs of your potential clients, you’ll be able to come up with a solid reselling plan.
You’ll have to spend extra money on maintenance and refurbishment if you want to engage in the resale of physical dedicated servers. This investment may result in your profit margins being reduced, but it can be rewarding if you can find a balance.
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