Do you know what is a reseller hosting? At Hostingify.com, we realized that reseller hosting is one of the least discussed topic in the web hosting world. However, reseller hosting is also one of the best ways you can make money (at least on the side) without much work.
What is a reseller hosting?
According to Wikipedia, a reseller hosting (or reseller web hosting) is a form of web hosting wherein the account owner has the ability to use his or her allotted hard drive space and bandwidth to host websites on behalf of third parties. The reseller purchases the host's services wholesale and then sells them to customers, possibly for a profit.
TL;DR Reseller hosting allows you to host multiple websites on a low monthly commitment and charge a much higher fees to your clients. Ultimately, this is a good way to make money by providing web hosting services.
Reseller hosting vs Shared web hosting
I know you are going to ask this. If shared web hosting is cheaper than reseller hosting, then why should you use reseller hosting to host your client's websites?
Shared web hosting comes with a single cPanel where all websites are parked under one roof. Allocation of bandwidth and visits for example are divided equally between the number of websites and you have no control of who-gets-what. In the case where one of the websites you host under your shared web hosting is hacked or infected by virus, there is a high chance that all your websites are hit simultaneously.
Reseller hosting on the other hand allows you to create different accounts for your clients which is controlled by separate cPanels. Using WHM, you can easily control the allocation for each account and this gives you a great overview as an admin. Plus, all the accounts under your control are not affected in the case of hacking or virus (except for the ones that are being hit).
How to make money with reseller hosting?
There are many ways you can make money using reseller hosting and the first step is to find the best reseller hosting deal you can find.
The second step involves planning your pricing strategy and you should be able to cover the cost of the reseller hosting after your third to fifth client. Again, you can even make a profit right after having one client by providing ad-hoc services and more web hosting features.
The beauty of having a reseller hosting is the ability to customize the web hosting services based on your needs. You are recommended to have at least two tiers pricing to cater for low traffic websites and high traffic websites (and for demanding clients).
How much money can you make with reseller hosting service?
How much money you can make with a reseller web hosting service depends heavily on your pricing structure.
Here's a quick calculation to give you a rough estimation.
How much can you make with a reseller web hosting service?
[Fixed cost] Cost of a reseller web hosting: $14.37/mo
Basic, single domain hosting charge: $3.99/mo
Ad-hoc theme installation charge: $50
Optional theme and plugin membership: $5/month
Monthly and security maintenance charge: $10/mo
Potential setup fees(one off): $50
Potential earnings: $18.99/mo
As you can see, reseller web hosting service can be very profitable and it doesn't take long to make money from it. However, there are also some downsides (or things you got to be prepared) when you run a reseller web hosting service.
Challenges you might face when managing reseller hosting services
Web hosting support. As a reseller hosting service provider, you are expected to provide web hosting support. It is not the easiest work on Earth if you have limited knowledge in web hosting. In this case, getting a reseller web hosting plan from a reputed hosting company that provides unlimited support is critical for your success. This is why Hostingify only recommends this web hosting company for their reseller hosting packages.
Billing. Finances are always messy and there is no way to avoid it if you want to run a reseller hosting service. For easier finances, you should work with payment gateway such as PayPal which help you a lot in getting your finances sorted out.
Theme and plugins update. As a web host yourself, you should take the initiative to remind your clients to keep the theme and plugins updated. If they have no idea how to do it (or have no time), charging them a small fee goes a long way especially in website security.
DDoS and other attacks. This is the worst thing that can happen to your reseller hosting service. The best way to avoid this is by enabling CloudFlare on all the websites that you manage. CloudFlare doesn't only provides security for websites, it also serves as a Content Delivery Network (or CDN) to speed up website loading time.
Question: Are you ready to start your first reseller hosting service?
Interested to start your first reseller hosting service? Leave a comment below on your thoughts and if you need help, contact us here and we'll try to help out as much as possible!