The potential to resell hosting represents a golden opportunity for those who want to start their online business. Hosting resellers can offer affordable packages that help freelancers and small-scale investors begin their online success.
But how do you get into the web hosting business? Is it possible to resell hosting for a profit?
Luckily, it’s quickly done, and once you finish reading this article, you’ll be a successful web hosting expert.
Is it Possible to Resell Hosting?
Reselling hosting has become one of the most popular ways of securing income. It refers to the process of renting some of your hosting space to another business or freelancer. This is the same concept as reselling wholesale products.
If you’ve already bought a hosting plan from a reliable hosting provider, you can use the space you’re not using by sharing your hosting account with others. Many people benefit from this business by buying discounted hosting and reselling it for a profit.
Some people also buy hosting plans for the purpose of reselling them. They hunt for lucrative deals, and once they can secure one, they can resell hosting for a profit.
This differs from a referral program you can establish while blogging because you own the domain you rent to your clients. Yet some resellers also have an affiliate program where they can refer clients to a web hosting service. You’d still receive a bonus when the clients choose your suggested service, but you won’t be responsible for any support.
What Kinds of Hosting Sell Well?
You always need to do some research to find lucrative items to resell. This also applies to reselling web hosting.
Different types of web hosting are available, but some are more popular. You should consider these if you’re considering becoming a reseller hosting provider.
- Shared web hosting is one of the most popular types because it’s affordable and doesn’t require much technical knowledge. It’s the number one choice for most beginners as they all share the same cloud server.
- VPS hosting, or virtual private server hosting, divides the primary server into smaller servers, so the number of websites that share the same server is significantly lower. It allows for the benefits and customization of a dedicated server without the cost of one.
- Cloud hosting is a scalable hybrid of cloud VPS, which can be adjusted to accommodate the needs of a growing business and unlimited websites as you increase the storage space.
- Managed WordPress hosting is the favorite solution for WordPress users as it offers special WordPress security features.
- Dedicated hosting works for enterprise-level businesses, granting users the highest level of control and security.
What is the Value of Hosting?
The value and cost of hosting vary significantly between various web hosting servers and providers. Choosing the right hosting type can also affect the value of the service.
Shared hosting services, for example, can cost between $2 and $12 per month, while dedicated hosting is more expensive and can cost around $80 per month.
Do Hosting Lose Value Over Time?
This depends on the hosting provider and the plan you choose. Some hosting providers offer lower prices to attract customers, and the renewal fees will be significantly higher. So, you might pay a low price during the first year and then pay double or triple the amount in the second one.
Yet, this is not always the case. Sometimes, the hosting provider will offer a significant discount for long-term plans. The value of hosting can increase or decrease depending on other factors, like changes in the market.
Things to Consider When Reselling Hosting
Reselling hosting isn’t for everyone, whether you’re the seller or the buyer. It might sound like a good option for both, but this is not always true. This is why you must consider a few things before reselling hosting services.
Find and Know Your Clients
To make money from this business model, you should first have an adequate number of clients who might be interested in this service. Web developers and agencies might be able to pursue this business opportunity because, without enough clients, you’ll end up with hosting spaces that no one is interested in buying.
Hosting reselling might attract various clients because you cover all their needs without them searching the market. Yet, your clients might not be able to benefit from this business model if they’re building a website from scratch or have zero experience in this arena.
As a result, you should ensure you can answer all their questions and solve any technical problems. Remember that your clients will turn to you if they face any issues, so you should have adequate technical experience to maintain a solid service.
Choose Your Provider
Remember that you’ll be renting out hosting services, so you should ensure you’ve picked a reliable hosting provider. This includes ensuring that your web host provides high uptimes, so your clients can always have access to their hosting space.
Pick the Package
By studying your target clients, you can pick the best plan to suit them. You want to ensure that the hosting service’s original value allows you to charge a higher price for a profit. You should also ensure that the hosting package you offer covers your clients’ needs.
Develop a Pricing Plan
Remember that your clients will compare the value to the price you offer. So, you should study the market to ensure you’ve picked a suitable price plan to attract your customers.
If your price is too high, your clients might reconsider reselling hosting services because they can get a better hosting plan from an official provider. If the price is too low, your clients might lose trust in your service.
Where to Resell Hosting
The best place to resell hosting services depends on the type of service you’re offering. This means you should share the benefits of your service with people who might be most interested in it.
Online Forums
If you have an agency or work as a developer, you should visit online forums and communities to get in touch with potential clients. You can list your services and see how clients react to your services and packages.
What Makes This Option Great
It’s an effortless way to advertise your business. You can expand your network and connect with other people in the industry to find more potential clients.
- Fees: No fees if you’re writing on online forums, as long as you don’t list an ad.
- Payment Methods: No payment methods are involved.
Craiglist
Putting ads on Craiglist is one of the best ways to advertise your hosting services and connect with clients. You don’t need any special preparations, and you can post as many ads as you want.
What Makes This Option Great
You don’t have to hire someone to write an ad for your services. You can post and update your ad several times and connect with potential clients, so this will be an excellent opportunity to expand your network.
- Fees: This platform doesn’t charge any ad fees unless you post your reseller hosting services under the Services category. In this case, you’ll have to pay $5.
- Payment Methods: Craiglist accepts American Express, Visa, and Mastercard.
Blog Posting
If you already have a blog where you educate people about your business, you can make money through affiliate marketing. You can link your reselling hosting business in your posts, and when people click the link, they will be redirected to your business website, where they can browse the available packages and buy them.
What Makes This Option Great
You’ll be in touch with people who are already familiar with your business and what you offer. Blog posts will help establish your status as an industry expert, so advertisers will trust your hosting services.
- Fees: Posting a link is free.
- Payment Methods: No payment method is needed.
What You’ll Need to Resell Hosting
If you’ve already bought a hosting plan you don’t need, you can rent this service to other entrepreneurs and freelancers. Several hosting options are available, and you can pick one to make a profit.
- Study your clients and build connections to make your hosting service well-known.
- Define your offering by identifying your hosting service and niche to attract the right customers.
- Compare different hosting platforms to choose the most appropriate one for your potential clients.
- Pick the most suitable package, considering what you’ll have to take responsibility for when you resell hosting, like technical support.
- Choose between a hybrid or dedicated server based on your budget and what will appeal to your clients.
- Hire people to handle different aspects of your business, like technical support, customer support, and live chat. You might be able to take care of these responsibilities if you’re working with one client or two, but with more clients, it’s best to hire other people.
- Develop a marketing strategy to advertise your services as a hosting reseller, guaranteeing they will reach the right customers.
- Work on a billing system that guarantees security for you and your clients.
- Develop a customer control system that allows customers to report issues and provide feedback.
How To Resell Hosting: Step-By-Step Instructions
Reselling hosting can be an excellent way to generate some income. However, you must follow the right steps to guarantee that this business plan will achieve profit.
1. Do a Research
Before considering this business opportunity, you should do some research. This includes identifying your target market and the kind of services you want to provide.
2. Choose a Provider
Plenty of good hosting providers like DreamHost and A2 Hosting offer good packages. Study the benefits of every package to choose one that suits you and your clients. Make sure that there’s an agreement for reselling that allows you to make use of the extra hosting space on your reseller hosting account.
3. Pay for a Plan
Understand the price of the hosting plan you choose. Some providers will charge a lower price as a promotion but will increase the subscription later on. Make sure that you understand the final price to set the pricing plan for your service.
4. Connect With Your Clients
Build an appropriate marketing strategy that allows you to connect with your clients. This includes choosing a good network to build long-lasting relationships with your clients and offer your services.
5. Build Your Brand
Follow up with clients to continue offering reliable services. Make sure that you’re always able to address any technical issues to gain trust as a reliable web hosting provider.
Frequently Asked Questions
What is the Profit Margin for Reselling Hosting?
Determining the exact profit of your reselling hosting business depends on several factors. But as for any standard business, the profit margin can be around 7% to 10%.
In some cases, you might be able to achieve more profit by buying a discounted package or outsourcing technical support. Most resellers will add between $20 and $50 to resell hosting, gaining around $600 per month.
What are the Types of Reseller Hosting?
The main types are white-label and private-label reselling. In white-label reselling, the reseller is an independent company that acts as a subcontractor, and your logo appears to the client. When you’re a private label reseller, the original company’s logo appears to the customers.
Similar Tutorials to Check Out
There are several products and services that you can sell for a profit. Here are some ideas to consider.
- Resell Software: Buy and sell software tools to clients in your industry and build your brand as a reliable service provider.
- Resell Electronics: If you can buy electronics in bulk for a discounted price, you can resell them for a profit.
- Resell SEO Services: Help entrepreneurs improve their websites’ rankings and visibility by reselling reliable SEO services.
Wrapping Up
You can resell hosting services to freelancers, entrepreneurs, and companies for a profit. You need to do some research to pick a suitable package and see how you can plan a pricing plan and support system.
If you know someone who might be interested in this type of business, share this article with them.
Send us your thoughts in the comments.
