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How to Resell VPS Hosting: A Complete Guide

Are you looking to start a new business and boost your income in these challenging economic times?

If you are, you’re not alone. Many people are searching for ways to make some extra cash. A great way to do so is to resell VPS hosting service.

In this guide, we provide detailed tips and instructions on VPS reselling and provide you with valuable resources.

Is It Possible to Resell VPS Hosting?

Virtual Private Server (VPS) hosting, and web hosting in general is a great industry to be in right now. In fact, VPS reseller hosting is among the best recurring revenue businesses to run.

The industry is booming and is projected to continue growing by over 15% annually over the next four years. In turn, we definitely recommend getting in on the action.

Starting a full-fledged web hosting services company is easier said than done. That being said, reselling VPS hosting is a great starting point for your journey.

What Kinds of VPS Hosting Sell Well?

There’s no one right answer to this question. How well your VPS server hosting services will sell depends on your client base.

Your sales volume will be determined by how well the services you offer cater to your clients’ needs. So, you should choose a VPS hosting provider that offers many customization options.

Doing this will allow you to have a more diverse range of solutions to offer clients. This will result in you casting a wider net, selling more VPS hosting, and making more money.

What Is the Value of VPS Hosting?

VPS Hosting prices vary widely from one provider to the next. You can find subscription plans starting at $4.99 a month all the way to $129.99 a month.

The value you receive from reselling VPS hosting depends on how much you pay for it and the markup you choose to resell at. In turn, you should have a clear vision of your business plan and gauge the value you gain based on your profit margin.

Does VPS Hosting Lose Value Over Time?

Since VPS hosting resale doesn’t involve dealing with a physical product, you may think that your offering isn’t subject to depreciation. In reality, this isn’t true.

Your VPS hosting services can lose value when newer technology offering higher storage capacity and better features comes out. When this happens, your clients may shift to these new and improved solutions.

The reduced demand for your services will force you to lower your prices to attract more clients. This is especially true if you’re stuck in a subscription plan with a VPS hosting provider that doesn’t offer the new features clients are seeking.

The good news is that you can rectify this in the long run by ditching your current provider for a new one that offers updated services.

Things to Consider When Selling VPS Hosting

When starting a VPS hosting resale business, there are certain factors you should consider. Here are some of the most important ones:

1. Scale of Operation

One aspect to think of is the scale your business operates at. The main consideration here is how many clients you expect to have. Knowing this will inform your decision when picking a suitable subscription plan with a VPS hosting provider.

The money you expect to receive from clients should justify the subscription fee you’re going to pay.

2. The Channel to Resell Through

When reselling VPS hosting services, you subscribe to a plan with a hosting provider and then resell the services to an end client. When you sell to clients, you do so as if you’re the hosting provider yourself.

In turn, your website should look professional and give clients a sense of credibility. If your website doesn’t project the right image, your VPS hosting services won’t sell well regardless of how good they are.

3. Your VPS Hosting Provider

Additionally, it’s essential to choose the right VPS hosting provider.

The wholesale subscription you purchase from this provider will have certain specifications, such as bandwidth, storage space, and the multiple websites it can support.

Other services providers may offer are automatic backups, SSL certificates, or domain names. You should choose a VPS hosting provider that offers all the services your client base may need.

Best Reseller VPS Hosting Providers

Here are a couple of VPS hosting providers we recommend dealing with:

1. InMotion Hosting

a screenshot of the inmotionhosting homepage

InMotion Hosting offers fully managed VPS services. It’s one of the premier white-label providers worldwide.

What Makes This Option Great?

All of InMotion Hosting packages come with unlimited bandwidth and expansive SSD storage.

  • Packages: $35.99/month, $55.99/month, $85.99/month, $109.99/month

2. A2 Hosting

a screenshot of the a2hosting reseller homepage

A2 hosting is another excellent option. The company has over two decades of experience and four data centers worldwide.

What Makes This Option Great?

This company offers a wide range of plans and hosting services. It also has excellent customer support and an affiliate program.

  • Packages: $54.99/month, $67.99/month, $89.99/month, $99.99/month

What You’ll Need to Resell VPS Hosting

Before your VPS hosting resale hustle starts running on all cylinders, there are some essential requirements you should have. Here are some of them:

  • Access to the Internet: The VPS hosting industry operates strictly online. In turn, you can’t run your business if you don’t have a reliable internet connection. You need a laptop, smartphone, or tablet to connect to the web and manage your affairs.
  • A Website to Resell On: Nobody will know you’re offering VPS hosting services if you don’t have a website that displays them to potential clients. Your website should market your services and inform clients about the services they should expect to receive.
  • A Valid Debit/Credit Card: When purchasing a subscription plan from a VPS hosting provider, you can’t pay in cash. You’ll need a working debit or credit card to conduct these transactions. You also need it to access your funds when clients pay you.

How to Resell VPS Hosting: Step-By-Step Instructions

When starting any business, you may feel overwhelmed by the wideness of its scope. There are many aspects you need to consider and many steps you should go through to turn your business idea into a successful reality.

The process becomes a lot easier if you have a clear vision of your objectives and the steps you should go through to achieve them.
Here are the main stages of starting a VPS hosting resale business:

1. Decide on Your Business Model

Before you start making any major moves, the first step is to devise a comprehensive business plan for your VPS hosting resale enterprise. Doing so will make it easier for you to determine your objectives, set a suitable budget, and make quality decisions along the way.

When creating your business plan, there are several questions you should answer.

First, you should decide who your target clients are. Once you do so, you should base your decisions on your target clients’ needs and expectations from the services you’ll provide.

In this phase, you should also settle on your pricing. The ideal price to offer your services depends on how extensive these services are and the level of customer support you wish to offer

2. Settle on a VPS Hosting Provider

Once you’ve set your business plan, the next step is to choose a VPS hosting provider. This is a critical decision since this provider will be your partner moving forward.

If you get this decision wrong, you’ll be stuck in a long-term subscription plan with a provider that doesn’t offer the services your target client base is seeking. In turn, your business’s performance will suffer.

You should pick a VPS hosting provider that offers enough storage and bandwidth to meet your client’s needs. You should also choose a provider with good customer support that offers white labeling services.

Another question to ask yourself when picking your provider is whether the subscription plans it offers are suitable for your budget.

3. Cater Your Packages and Set Up Customer Support

Next, it’s time to acclimate yourself with the package you’ve purchased from the provider.

Some providers offer an interface that allows you to customize your packages to suit your clients better.

Consider any auxiliary services you wish to offer your clients too. If you market backups and automatic updates as part of your package, you should configure these services now.

We recommend offering extensive customer service to your clients. This is a key selling point since clients usually aren’t tech-savvy.

Knowing they can lean on you for technical support eases their mind and makes them more likely to become loyal customers.

To do so, you should partner with a Customer Relationship Management (CRM) service to help you manage your customer support.

4. Label and Market Your Hosting Plans to Customers

Last but not least, you should portray your VPS hosting packages in a way that suits your desired company image and branding.

You can position yourself as a premium VPS hosting provider and charge high-end prices. Alternatively, you can appeal to clients on a budget as an affordable provider.

Regardless of your chosen positioning, you should communicate it to potential clients through various channels. You can do so through sponsored posts on social media platforms like Facebook and Instagram. Sending promotional emails is another option.

Since you’ll sell your services through a website, you should optimize it for search engines. You should also consider gathering testimonials from existing clients and displaying them on your website.

Can You Make Money Flipping VPS Hosting?

The short answer is yes. Reselling VPS hosting has excellent potential as a lucrative business. Here’s why:

What Is a VPS Hosting Resale Business?

Running a VPS hosting resale business involves purchasing hosting packages at wholesale prices and reselling them to end clients.

The great thing about it is that you don’t need a tech background to do so. Your VPS hosting provider takes care of all the software, hardware, and infrastructure requirements.

Your role is to market and brand the VPS hosting services you buy and sell through your own website. You’ll handle the non-technical side of the business, such as customer service and billing.

Is Reselling VPS Hosting a Good Way to Make Money?

Reselling VPS hosting is an excellent way to make substantial passive income. If you run your business correctly, you can resell hosting packages at high markups and make huge profit margins. This is especially true if you successfully position your brand as a premium one.

Frequently Asked Questions

Here are some questions people commonly ask about VPS reseller hosting:

Is Reseller Hosting Profitable?

Reseller hosting can be highly profitable, particularly if you choose the right VPS hosting provider and a subscription plan that fits your budget. This allows you to set prices at a high markup and make much more than what you paid.

What Is the Profit Margin for Reseller Hosting?

A newly established reseller hosting business typically has a profit margin of 7% to 10%. As they grow, these businesses’ profit margins can increase to 15% or 20%.

Similar Tutorials to Check Out

  • Resell WordPress Hosting: Reselling WordPress hosting can be incredibly profitable. Not only that, but it’s also quick and easy to do!
  • Resell Dedicated Servers: Clients running large websites always need a dedicated server for web hosting, and you can be the one to provide it!
  • Resell Software: We’re in the golden age of software. Take advantage of this wave and make stacks of cash by reselling it!

Wrapping Up

If you want to resell VPS hosting to supplement your income, we can confidently say that it’s a great idea.

Use the tips and instructions we detailed in this guide to boost your chances of success.

Don’t forget to share this guide with your loved ones if you found it useful. Also, feel free to leave a comment below if you have any questions.

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