Reseller hosting services allow you to buy enough server power to run your own web hosting company. Whether it’s your only “doing,” a side hustle, or an add-on to your existing business, becoming a reseller holds excellent earning potential. White-label reselling plans further expand this capacity, allowing you to establish a brand reputation while earning profits.
The following findings result from two processes, extensive research, and user feedback. Our independent study combines the testing performed by HostAdvice experts and thousands of user reviews worldwide. Our professionals have vast experience in the web hosting industry; they have engaged in in-depth measurement, including real-time speed tests, uptime, and reliability tests.
In this article, you can learn the basics of reseller hosting – how it works, who it is for, how to get started, along with the best opportunities and the biggest challenges you’ll face as a reseller. In addition, you can assess our ranking criteria and learn how to choose the best reseller plan.
Short on Time? Check Our 8 Top Reseller Providers Ranked:
- HostArmada – Best Linux Reseller Hosting
- Verprex -Best Reseller Hosting Overall
- ScalaHosting – Best Reseller Hosting With WHMCS
- Chemicloud – Best WordPress Reseller Hosting
- A2 Hosting – Best cPanel Reseller Hosting
- HostPapa – Best for Powerful Performance
- InterServer – Best White Label Reseller Hosting
- InMotion Hosting – Best Reseller Hosting for Beginners
Review Breakdown: Our Top 8 Reseller Hosts in 2022
Windows servers are only worthwhile if you have a clear need from one of your customers. Otherwise, it’s better to stick to Linux when it comes to reselling, and I have the perfect way to do so – it’s HostArmada!
- Overall Score: 5.0
- Performance: 5.0
- Scalability: 4.8
- Features: 5.0
- Support: 5.0
- Pricing: 4.9
HostArmada is one of the most successful Linux reseller hosting companies due to its fast, stable, secure, white-labeled plans. The best part is that you’ll get nice features, including free SSLs, backups, WAF, and malware protection.
HostArmada does not have a BBB listing (only applicable for U.S.-based companies), however, Trustpilot awards them 4.9 stars out of five (with more than 446 user reviews).
Performance: Every reseller hosting plan utilizes multiple hosting locations, cloud infrastructure with 99.9% uptime, SSD storage with high I/O capacity, LiteSpeed web servers & LS cache plugin, static and dynamic content caching, object caching of complex queries, and more.
Scalability: While you can start small, with HostArmada, you can go up to 140 cPanel accounts, 120GB SSD storage, 6TB bandwidth, and unlimited websites combined with many extras.
Features: HostArmada offers reseller web hosting plans with the most extensive set of extras, including domain, advanced security and speed features, cPanel-enabled, email, SSL, database, and development features.
Support: HostArmada’s technical support is available 24/7/365 via ticketing, phone, or chat. You can also benefit from free website consultation, app/plugin/module installs, or a hacked website restore.
Pricing: Start your reseller hosting mission at $8.99 per month for 50 cPanel accounts, 40GB SSD storage, 1.5TB bandwidth, and unlimited websites. You’ll benefit from promotional prices and a 45-day money-back policy.
Pros & Cons
- WordPress- optimised environment (staging, WP-CLI, WordPress transfer, and themes/plugins updates)
- Unlimited control and easy management with cPanel and WHM
- Superior server performance, set of resources, and free extras (Speed Reaper features, dynamic caching, malware scan, and removal, WAF & IP firewall)
- Renewal rates are triple the promotional prices (on the good side, you’ll benefit from transparent pricing with all rates shown on the website)
Verpex offers powerful white-labeled reseller packages with high resource limits, cPanel, free SSL certificates, and many reseller-specific features. I found it in my complete review; it’s the best overall reseller web hosting provider!
- Overall Score: 4.9
- Performance: 5.0
- Scalability: 4.8
- Features: 4.9
- Support: 5.0
- Pricing: 4.8
If you are looking for a fully managed reseller hosting service, Verpex is the way to go. You’ll get unlimited reseller hosting, DNS setups with Anycast, and 24/7 technical support!
Verpex does not have a BBB listing (only applicable for U.S.-based companies), however, Trustpilot awards them 4.7 stars out of five (with more than 115 user reviews).
Performance: Verpex offers dozens of location options. It utilizes SSD storage, LiteSpeed caching and crawler, and the latest cloud servers from the top public providers for superfast performance and 99.99% uptime.
Scalability: You can easily upgrade up to 200 cPanel accounts, unlimited SSD disk space, unlimited bandwidth, 4GB LVE RAM per cPanel, and 2 vCPU per cPanel.
Features: You’ll get 100% white label reseller hosting with free setup, WHM & cPanel, unlimited migrations, free SSL certificates, free domain, Softaculous auto-installers, daily backups, clean mail servers, and Imunify360 protection.
Support: 24/7 customer support is available via live chat, phone, email, or ticketing system. You can also use Verpex’s Knowledge Base for self-help.
Pricing: Excellent plans for beginners without extensive experience. Affordable reseller hosting solutions starting at $1.80 for 15 cPanel Accounts, 50GB SSD disk space, unlimited bandwidth, and 2GB LVE RAM per cPanel, backed up with a 45-day money-back guarantee.
Pros & Cons
- 100% white label hosting (unbranded server names, custom nameservers, and public cloud IP addresses)
- Superior reliability – 99.99% uptime and lightning-fast speeds
- Incredible ease of setup and management (Anycast, WHM, WP CLI, SitePad Sitebuilder, cPanel with Softaculous, and more)
- The free domain is excluded from monthly billing cycles and excludes premium extensions (you can choose from many common TLDs or contact support if you have a specific requirement)
- Prices significantly increase on renewal (you get 90% off on your first month, which is not a recurring discount)
Are you a newcomer to reseller hosting? If I were you, I would get Scala Hosting – it allows you to start selling web hosting in less than 24 hours, making it a superb starter host!
- Overall Score: 4.8
- Performance: 4.8
- Scalability: 4.9
- Features: 4.8
- Support: 4.8
- Pricing: 4.8
Scala Hosting is among the top resellers with WHMCS that simplifies and automates all aspects of operating an online web hosting and domain registrar business. And that’s not where it ends; you’ll also benefit from decent features, affordable plans, and robust proprietary technologies.
Performance: Scala Hosting’s cheapest reseller hosting plans offer a 99.9% uptime guarantee, high-end hardware, the fastest servers, the best system administrators, and remote daily backups.
Scalability: With Scala Hosting, you can start in a shared environment and upgrade up to unlimited SPanel accounts, 50GB SSD storage, unlimited bandwidth, 16x CPU power, and a dedicated environment.
Features: All Scala Hosting reseller plans are 100% white-label and provide free migration, private nameservers, free SSL, free CDN, free domain reseller, SShield Security Protection, at a minimum.
Support: An award-winning 24/7 hosting support backs up the entire Scala Hosting reseller offer. You can get in touch via live chat or email to get a fast, friendly, and helpful response.
Pricing: With Scala Hosting, you can start at $14.95 per month – up to 20 cPanel accounts / 25GB SSD storage / 1TB bandwidth / 1x CPU in a shared environment with a 30-day money-back guarantee.
Pros & Cons
- Free cPanel/WHM control panel for easy control
- Lots of extras (free migration for unlimited websites, one-click script installer, free CDN with over 100 locations, multiple PHP versions)
- You can open a domain reseller account for free (over 100 gTLDs and ccTLDs available)
- Special introductory prices are available only on the first purchase (products renew automatically at regular rates until canceled)
- No in-house Website Builder
Which of the top resellers should you choose for the number 1 CMS worldwide? I recommend getting ChemiCloud, as the best reseller hosting for WordPress.
- Overall Score: 5.0
- Performance: 5.0
- Scalability: 4.9
- Features: 5.0
- Support: 5.0
- Pricing: 4.9
ChemiCloud allows you to start reselling quickly and easily without any required coding or system administration. Choose your reseller hosting package, install WHMCS or Blesta with a single click, input some basic configuration, and you’ll be good to go!
Chemicloud does not have a BBB listing (only applicable for U.S.-based companies), however, Trustpilot awards them 5 stars out of five (with more than 376 user reviews).
Performance: Multiple server locations, SSD storage, LiteSpeed cache, HTTP/3, free Cloudflare CDN, Memcached, 1 core and 2GB memory per cPanel, leverage browser caching, etc.
Scalability: You can choose from storage optimized plans with up to 200GB SSD disk space, 100 cPanel accounts, and 12TB bandwidth, or accounts optimized plans with 200 cPanel accounts, 100GB SSD disk space, and 12TB bandwidth.
Features: 100% white label reseller plans on the cloud with private nameservers, free billing automation, reliable email services, unlimited website migrations, 30 days backups, free malware removal, 1-click apps installer, and more.
Support: ChemiCloud offers 24/7 outstanding fast support via live chat. Knowledge base, video tutorials, and the blog are available as self-help options.
Pricing: You can choose from four reseller web hosting plans, starting at $22.46 per month – unlimited websites/60GB SSD/3TB bandwidth/30 cPanel accounts. A 45-day money-back guarantee backs up all plans.
Pros & Cons
- Free billing automation (user-friendly WHMCS and Blesta pre-installed) and domain reseller account with customizable pricing and bulk discounts
- Excellent developer features (multiple PHP and MySQL versions, WP-CLI, pre-installed Git, SSH, and SFTP access)
- Lots of freebies (domain registration, website transfer, daily backups, SSLs, Softaculous)
- More expensive than competitors (still, excellent quality for money)
Who doesn’t like the industry gold standard, the easiest to navigate, cPanel control panel? I recommend getting A2 Hosting as the best white label cPanel reseller hosting available!
- Overall Score: 4.7
- Performance: 4.9
- Scalability: 4.5
- Features: 4.8
- Support: 4.9
- Pricing: 4.5
With A2 Hosting, you can make a lot of money as a reseller, utilizing its 20x faster turbo servers, SEO tools for better rankings, and higher conversion rates, backed up by its expert 24/7 Guru Crew Support!
Performance: A2 Hosting reseller plans are based on ultra-reliable servers, RAID-10 SSD Storage, and 99.9% uptime commitment. You can choose from standard or turbo servers for 20x faster speeds.
Scalability: You can choose from eight reseller plans (standard and turbo) and upgrade from 60GB SSD/NVMe and 600GB bandwidth to 270GB SSD/NVMe and 2,700GB transfer.
Features: Each white-labeled reseller plan comes with WHM, cPanel, WHMCS/Blesta billing system, free Enom domain reseller account, free SSL certificate (HTTPS), rewind backups, Cloudflare CDN, and free website migration.
Support: A2 Hosting’s Guru Crew support is available 24/7 via phone, live chat, or email. You can also use the FAQ for self-help.
Pricing: You can choose from monthly, annual, or triennial plans with better discounts for a longer-term plan. The cheapest offer is $18.99 (3-year commitment) for a standard reseller with 60GB SSD and 600GB bandwidth. A 30-day money-back is included in all reseller plans!
Pros & Cons
- Incredible ease of use with the cPanel control panel
- Free billing solution with your reseller web hosting account (a free WHMCS or Blesta license)
- Superior server performance (multiple locations, 40% faster AMD EPYC servers, 3x faster NVMEe drives)
- The WHMCS billing system is unavailable in the cheapest reseller plans
- No extra features for paying more (the only differences between the plans are storage and transfer included)
- Much pricier than competitors (but probably worth the add-ons)
Hostpapa offers powerful reseller hosting, perfect for agencies, designers, and developers. Each reseller hosting plan gives you the power, control, and security you need to bring your business to the next level. We like that they offer free billing and automation suites like WHMCS and client exec invoicing software on the highest plans.
- Overall Score: 4.4
- Features: 4.3
- Reliability: 4.4
- User Friendly: 4.4
- Support: 4.4
- Pricing: 4.3
When you choose the HostPapa reseller hosting package to start and run your web hosting business, your customers will get superior website performance thanks to SSD drives, RAID array with CacheCade, and a robust content delivery network. Hostpapa offers white-label hosting and a brandable control panel to grant your client login access to their control panels.
HostPapa also takes care of the security of your server infrastructure with some of the most powerful security solutions on the market. Plus, they offer a free 30-minute one-on-one training session with their PapaSquad experts. With HostPapa reseller hosting, your clients will love the incredible performance and ease of use while you will love the power, automation, and dedicated reseller support.
Features. 4.3): HostPapa offers all the power and performance you need with amazing features and superior server technology. You will get a Wholesale domain reseller account, private nameservers, Unlimited domains, Unlimited databases, Acronis server backup, Free Standard SSL Certificate, Monitoring & Intrusion detection, Brute force detection, Server firewall, DNS account control, WHMCS, Client Exec, Free dedicated IP addresses, Content delivery network and more.
Reliability (4.4): Each reseller hosting plan comes with a 99.9% uptime guarantee to ensure your website is always available when it matters most.
User-Friendly (4.4): HostPapa offers 100% customer satisfaction with a no-risk 30-day money-back guarantee.
Support (4.4): You will get help whenever you need it with 24/7 technical support available via chat, phone and email.
Pricing (4.3): HostPapa offers reseller hosting plans with all the tools you need to pump up your profits. Here is a breakdown of their reseller hosting plans and their specifications:
- Bronze: $30.99/month – 4 core CPU, 2 GB RAM, 50 GB SSD storage, 500 GB bandwidth, and 20 cPanel accounts.
- Silver: $40.99/month – 4 core CPU, 4 GB RAM, 100 GB SSD storage, 1 TB bandwidth, and 40 cPanel accounts.
- Gold: $65.99/month – 8 core CPU, 8 GB RAM, 150 GB SSD storage, 1.5 TB bandwidth, and 60 cPanel accounts.
- Platinum: $90.99/month – 8 core CPU, 16 GB RAM, 200 GB SSD storage, 2 TB bandwidth, and 100 cPanel accounts.
- Titanium: $120.99/month – 8 core CPU, 32 GB RAM, 250 GB SSD storage, 2.5 TB bandwidth, and 150 cPanel accounts.
- Manage all your clients under your brand in a single easy-to-use dashboard
- Brandable cPanel & WHM control panel
- Customizable client packages
- Wholesale domain reseller account
- One-on-one training session with HostPapa experts
- Free billing and automation suite is unavailable on Bronze and Silver reseller hosting plans.
If you run or resell many websites, InterServer is the perfect choice for you. It offers unlimited account reseller hosting. The best part is that each account includes all the built-in features such as security, speed, and caching, available with its standard web hosting packages.
- Overall Score: 4.4
- Performance: 4.4
- Scalability: 4.3
- Features: 4.6
- Support: 4.4
- Pricing: 4.3
InterServer offers superior white label reseller hosting with instant account setup, easy management, proactive backups, and premium hardware in five reseller web hosting plans.
Performance: A steady and reliable service with excellent uptime (100% result from testing), no outages, and average response times.
Scalability: You can upgrade up to 280GB of disk space and 2,000GB monthly bandwidth across all resold accounts.
Features: You’ll get unlimited domains, one-click scripts, and MySQL on SSDs. Each customer account gets all shared web hosting features, including Unlimited ULTRA SSD storage, unlimited email accounts, over 450 cloud apps, SitePad Website Builder, Intershield protection, free SSL, free website migration, and more.
Support: Customer support is available 24/7 via phone or email, and you can also use the Knowledge center for self-help.
Pricing: Monthly billing is available without setup fees, making it an affordable way to start your reseller web hosting business —$ 19.95 per month for 80GB disk space, 500GB monthly bandwidth, and unlimited accounts.
Pros & Cons
- All plans come with unlimited domains and email accounts (separating your sites and clients improves security and performance)
- Management through the popular Direct Admin (each user gets a control panel login)
- Each customer account has all features included in standard web hosting (free website migration, SSL, over 450 cloud apps, global content caching, etc.)
- Extra fee for private DNS and unique IPs (drives up the price by almost 50% with the cheapest plan)
- Not beginner-friendly (more of a bare-bone service suited for developers and other experienced users)
InMotion Hosting is the best way to kickstart your business, so I suggested it for all newcomers. Whether you are starting from scratch or transferring an existing account, it is the best reseller hosting to start making money!
- Overall Score: 4.1
- Performance: 4.1
- Scalability: 4.0
- Features: 4.1
- Support: 4.1
- Pricing: 4.0
InMotion Hosting is the best reseller hosting solution with cPanel, WHM, and WHMCS. Better yet, it provides free white-label and free domain resellers with hundreds of TLDs available.
Performance: Fast and reliable, fully managed reseller hosting with SSDs for 20x speed boost, RAID 6 data protection/high availability for the VPS plan, superior hardware, and software.
Scalability: You can easily upgrade up to 80 cPanel accounts, 160GB disk space, and 1,600GB monthly bandwidth in a shared environment, or up to 125 GB storage, unlimited bandwidth, up to 7GB RAM, and five or more cPanel accounts with the VPS reseller hosting plan.
Features: All reseller web hosting plans include white label, domain reseller, full management, multi-layer defense, WHMCS, Dedicated IP, 1-click WordPress installation, free domain, unlimited email accounts, and backup manager.
Support: 24/7/365 US-based support to assist you in all problems.
Pricing: You can pay by the month, six months, a year, or two. InMotion Hosting offers frequent deals and discounts, especially on longer-term plans – 15.39/month for a two-year commitment – 80GB SSD storage/800GB bandwidth/free dedicated IP/25 cPanel accounts.
Pros & Cons
- cPanel, WHM, WHMCS, and Softaculous with over 400 apps included
- Reseller VPS hosting available (eCommerce-optimised, free server management, root access, live-state snapshots, better performance, and more)
- 90-Day money-back guarantee (valid for six-month and longer plans only)
- Some features are limited to the most expensive plans (Launch Assist)
- No refunds for the monthly plans
How Do We Rank and How You Should Choose the Best Provider for You?
- Server Resources10%
- Server Performance10%
- Scalability Options5%
- Branding Opportunities7%
- Management Options5%
- Reseller Specific Features10%
- Other Important Features8%
- Customer Service12%
- User Reviews30%
Our experts perform tests specifically for each category, or in this case, reseller web hosting, to decide which provider ranks accordingly. At HostAdvice, we take a lot of time and effort to establish the ranking criteria or the important factors for each category. Then, our professionals assign a percentage to each factor according to its contribution to the ideal reseller hosting plan.
Once we set up the criteria and rank the provider separately for each factor, we use the allocated percentages to form a single, weighted score that reflects the overall quality of the reseller company.
But who are “we?” You were wrong if you thought we exclusively referred to HostAdvice in-house employees. Our independent study takes into consideration the providers’ customers. We assign the most substantial weight of 30% to honest and valuable user reviews while we do our best to eliminate biased comments.
Now, the only question is, what factors are we looking at when we give rank for the reseller hosting category? Here are our recommended parameters for choosing the top resellers:
- Server Resources (10%): The hardware components are the first thing you need to look at, especially if you plan on serving a significant number of clients. You need to consider the server type, CPU, RAM, bandwidth, and disk space. VPS and cloud technologies always perform better than shared hosting environments. Also, it would be best if you calculated your resource needs beforehand because they will determine your future customers’ experience. How many clients do you have? In addition, what are they hosting? High-traffic websites and deep database requirements ask for significantly more resources than static websites without many interactive elements. If you have more power, you will be able to sell more plans.
- Server Performance (10%): You must evaluate the web host’s performance, including key performance criteria – uptime and speed. Uptime refers to the time your server is operational. And you don’t want to be explaining to your customers why their website is down. You would get a 100% uptime in the perfect world, but since that’s pretty impossible, you should strive towards 99.95% or above. And when it comes to speed or response times, look for the best possible result – the faster, the better. It would be best to avoid response times of over 600ms.
- Scalability Options (5%): As a reseller, you might start small, but as your customer base increases, you’ll need more resources to support this growth. It’s fairly simple; more people will want to buy from you if the market likes your offers. And there’s no point in buying these excessive resources before you reach this demand – you’ll only lose money. That’s why your chosen reseller web hosting company must offer you flexibility and scaling options. You should be able to upgrade your plan easily or add more power to retain the same performance and cater to the needs of a broader audience.
- Branding Opportunities (7%): If you want to market the web hosting services as your own, you have to select a white-label reseller web host that allows you to rebrand the entire offer. Otherwise, you would appear as the middleman. Does the web host offer this option or not? Also, some companies include this feature for free, while others charge a premium, so remember to budget in.
- Management Options (5%): You’ll get to rebrand everything if you have selected a white-label reseller web hosting company. The best way to do so is using WHM, which grants you admin access to the server, many cPanel accounts (one for each customer), and WHMCS to handle your billings and support. With these controls, you can act like you manage everything.
- Reseller Specific Features (10%): Different companies will offer you various reseller-specific features. At a minimum, you should get a comprehensive reseller control panel, billing and CRM software, and easy white labelling.
- Other Important Features (8%): Some extras are more general yet needed to facilitate your overall experience. Here, it would be best to consider security add-ons, such as free SSL certificates or backups, speed-enhancing features such as SSDs, a high degree of redundancy (RAID 5, 6, or 10), and Cloudflare CDN.
- Customer Service (12%): You might stumble upon two options with reseller hosting. You might be responsible for providing customer support, or the web host might assume this task. Either way, you are running a business, so you (or your customer) should be able to contact support if anything goes wrong. Otherwise, your customers will blame you for the bad experience. When it comes to reseller web hosting, you should always go for 24/7/365 support without exceptions, and preferably, you should be able to reach them via several channels. Most importantly, they should respond quickly and provide helpful guidance that solves the problem.
- Pricing (3%): While pricing is important, it’s not top of the list. After all, you set the prices for your plans, so you can always bill your clients more if the monthly fee you need to pay is higher. Instead, analyse the price to value ratio. Does the quality justify the price, or do other reseller web hosting companies offer better features at the exact cost? The price should correspond with the feature set and the company’s reputation. For more insights check out our Reseller Hosting Pricing Page.
- User Reviews (30%): Reputation is much more important than price, especially regarding reseller hosting services. The best way to assess objective opinions is by listening to or reading about the other customers’ experiences. After all, what better way to set your expectations than matching them with first-hand reports from beginners, pros, and anything in-between?
What Is Reseller Hosting and How Does It Work?
Reseller hosting allows you to buy web hosting services from an established hosting company and sell them to others at a profit. You won’t have to set up your on-premise server with this option. Instead, you can rebrand the provider’s plans as your own.
As the reseller, you will bulk-purchase hosting plans at wholesale prices. The company will rent you server space, software, and bandwidth. Then, you can resell these services to your clients. As a customer, you pay the provider the specified monthly rate. Anything after that is up to you – you can charge your customers as high as you see fit.
The difference between these two numbers is your profit margin.
You’ll benefit from a minimal initial investment, an established server network, and professional customer support. Still, different web reseller programs offer different reseller hosting features. You might be able to set up a domain reseller account, perform basic tasks using client account management tools, set up your branding, etc.
The best part is the web host will handle all technical tasks behind the scenes, including hardware, server management, maintenance, or support, demonstrating incredible ease of entry. That’s why it’s necessary to choose a quality web hosting company; it’s the foundation of your business. In turn, you will be able to focus on marketing and sales and generate profits.
Who Is Reseller Hosting For?
Reseller hosting can be an excellent opportunity to make money for web developers, web designers, entrepreneurs, or agencies managing over ten websites. Anything below this most probably won’t be worth your time, effort, or money.
Say you have a well-established presence in the tech world, whether online or in-person. You can easily sell these services to your followers, customers, or people in your community.
Similarly, if you develop or design websites, you are essentially providing a service at a one-time fee. However, adding hosting to the equation will help you retain your customers in the long term. If you manage their web hosting services, you’ll generate recurring revenue and earn profits long after you finish the web development/design.
Can You Turn A Profit from Reseller Hosting?
Yes, reseller web hosting is a highly profitable opportunity with plenty of ways to turn a profit within this space. You can make a lot of money, especially with the best reseller hosting companies. Well, that’s until you know how to sell.
Each business worldwide needs a hosting service, whether it’s for web pages or professional email accounts. So, think about the possibilities – almost anyone can become your customer. Furthermore, web hosting companies usually take over the entire server management while you are left to do what you do best – business.
Still, remember that it all depends on your choices. You won’t get rich with just a basic plan, but it’s an excellent way to make some extra money. On the other hand, you can also take the time to make “reselling” your primary source of income. Essentially, it depends on how you handle it.
You need to take care of two things. First, you need to find a good reseller provider. After all, the company determines your service quality, and you want it to be top-notch. And second, you need to take care of branding and marketing. While the second step helps you attract new clientele, your reseller features and the provider’s overall quality ensure you keep them as loyal customers.
Let’s turn to simple maths to prove the point. Say you ordered a reseller hosting account that costs $20/month. If it allows you to host 40 clients, your cost for each customer is only $0.50. By charging each of the 40 clients $11/month, you can earn a revenue of $440 (40 x $11 = 440). If you subtract the reseller account cost, which is $20/month, your monthly profit will be $380.
If you have more clients, you can earn a huge profit every month by simply reselling hosting services. And sure, realistically speaking, you might not sell all of your slots, but even if you manage to get a few, you are in the green, so what is the harm here?
The best part is, reselling hosting requires minimal investment. Unlike the typical hosting business, you don’t have to invest in infrastructure, data centers, and maintenance because the parent hosting company will deal with everything. Simply put, you can make money without worrying about expensive investments. By the rule of economics, it’s the best it can get. A dollar today is worth more than a dollar in a year. So, you can save up your money and scale on-demand as your number of clients increases.
Pros and Cons of Reseller Hosting
- Low initial investment and costs: You can launch a new business without spending a dime on server infrastructure, technology, and equipment. The recurring monthly costs are also low, especially if you stumble upon a good deal or commit to the long term with a reputable reseller web hosting company.
- Ease of use and management: The apex web hosting service, its in-house developers, and administrators will cover all technical aspects regarding server management, security, connectivity, server maintenance, and updates. As the reseller, you don’t need much web hosting experience, technical skills, or expertise because you will be responsible for the more manageable tasks – attracting and keeping your customers.
- Excellent room for expansion: A reseller hosting account grants you more flexibility and freedom than having a single shared hosting account. It’s the best option for a website with a considerable amount of traffic and multiple web pages or a business with multiple websites – you can manage everything from a single space and upgrade as needed.
- Incredible income opportunities: Reseller web hosting can become your primary source of income with proper marketing, especially if you sell add-ons such as domains, SSLs, dedicated IPs, and more.
- Brand building: With white-label reseller web hosting, you can rebrand the entire offer – set your logo, brand name, and create an identity. For instance, you will be able to change themes and the user interface of control panels that your audience will use. Your customers will see you as the hosting company, and if you manage to build a good reputation, you will be able to increase your profit margins further and earn more.
- Significant dependency on the apex web hosting company: The reseller web hosting provider determines your service’s quality. There’s nothing you can do in case of outages, slow loading speeds, and so on, except to change the company if these become frequent. So, if anything goes wrong, you’re the one to suffer, possibly by losing precious customers.
- Customer service is tricky: If the apex web hosting company doesn’t take on this responsibility, you will have to care for customer queries. And if you fail to do so, your reputation will suffer.
- Changing reseller web hosting providers is risky and challenging: Shifting all data from one service provider to another is very likely to impact your client ratio; customers don’t like the process.
What Are the Biggest Challenges That I Will Face While Running My Own Reseller Hosting Business?
Running a reseller hosting business can be profitable if done the right way. Still, you might face significant reseller risks that you need to know before getting into the landscape.
Customer support is time-consuming
Even the best reseller hosting companies will not take over handling customer support. So, you’ll need to dedicate a lot of time to help your customers with support inquiries. Usually, these requests revolve around billing and password resets or guiding non-technical users to set up their email accounts or modify something on their website. So, you will have to employ personnel to be available 24/7 for these queries. Unfortunately, you can effectively ruin your business if you don’t put in enough effort to answer clients’ questions.
The apex web company determines your success greatly
Out of all reseller risks, this might be the most important one. When you choose a web hosting company, you are putting up your entire trust in it. The original web hosting company is responsible for the entire server infrastructure, including speed, uptime, hardware and software updates, etc. If anything goes wrong, you will be in no position to fix it. At the same time, you will suffer the consequences, probably by losing customers. So, you must be careful with your choice – switching from one company to another is also risky. It can negatively affect your customer ratio, so it’s better to get a reputable provider from the beginning, even if it’s more costly. It will pay off in the long term.
Marketing and branding can “make it or break it”
While it might sound confusing, it’s a relatively simple concept. If you wish to become a reseller, you must learn how to sell. Reseller web hosting is a profitable niche, but you are not the only one to spot this potential. You’ll face immense competition, so you must commit to solid marketing efforts. The key to success is developing a strong brand and value proposition. It would be best to choose a niche to better cater to your target market needs, also known as niche marketing. First, you need to attract customers. But it doesn’t end there, because then, you’ll face the risk of losing them. So, second, you must develop a good customer retention strategy. What makes you better than your competitors? Emphasise your tactics – is it the cost or quality of your service?
It can easily become a low-margin commodity
Web hosting services have a predetermined value. Whether they get them from you or elsewhere, bandwidth and storage are essentially the same for customers. The same applies to control panels, billing software, web hosting extras, such as domain names, SSLs, etc. Simply put, it’s a highly competitive industry because the values of the products are already established. It’s challenging to differentiate from your competition so that you can increase your profit margins and essentially earn more. But it’s possible – the best way to do so is by offering customised products, say a branded control panel with better options or superior customer support. For instance, you can advertise technical assistance in less than 60 seconds. But more importantly, you’ll also have to stick to it.
Getting Started with Reseller Hosting – Checklist
You’ve decided: “It’s time for me to become a reseller and make money.” So, the only question left is, how? Here’s our checklist to quickly get you going!
- Estimate your needs, meaning the number and type of clients you’ll serve, to determine the package you’ll need, including hardware and software components
- Match your requirements with the offers of reseller web hosting companies – not all providers have the same components, reseller features and overall qualities (uptime, speed, security, customer support, etc.)
- Contract for the reseller web hosting plan with the best price to value ratio – when you compare different companies, you should aim to get the best quality for money, not the cheapest offer
- What will you offer to customers? It’s up to you to develop the packages and configure templates, including the amount of storage and bandwidth, along with web hosting extras, such as domain or SSL
- Set up the profit margin for each package – you can apply the same to all offers or earn more on the more expensive plans; whatever suits your customers better
- Market your web hosting offers to attract customers
- Work to keep your existing customers – supply them with good deals and customer support
Key Reseller Hosting Features
Your hosting provider dictates the quality of your services as a hosting reseller, so choosing the right company is indeed a strong start. As bad as it sounds, your business will fail if you get this step wrong. Now, while you have to pay attention to general web hosting features and the quality of the overall infrastructure, reseller-specific features can also increase your chances of success a great deal. With this in mind, here’s what reseller hosting features to look for in a quality reseller hosting package:
- White Labelling: You can rebrand and customize the entire offer, including the cPanel logo if you get white-label reseller hosting. As a result, you can bill your clients under your company name without revealing the parent hosting provider.
- Account Management Apps: While WHM and cPanel work in tandem, they are two different tools that offer various benefits to both end-users and resellers. WHM gives you administrative access to the back-end of cPanel. It helps you create hosting packages and individual hosting accounts for your customers conveniently. On the other hand, cPanel enables you to give your clients access to manage their hosting plans.
- Built-in Billing Software: The market offers plenty of third-party web management platforms, such as WebHost Manager Complete Solution (WHMCS), that allow you to automate many tasks. For instance, you can automate creating customers’ accounts, renewing customer subscriptions, invoicing, and collecting payments.
- Second-Line Customer Support: As a hosting reseller, you have to provide first-line support to your clients. But sometimes, you might struggle to fix the issue because of not getting sufficient server access for performing the investigation. Here is when the parent hosting provider will step in to offer second-line support. If the white label provision is extended to the support offering, you will never have to worry about getting the identity of the original hosting company being revealed.
- The Ability to Create and Manage Your Packages: It should be easy to create plans to suit the needs of your target market. This way, you’ll maximize your appeal and sales.
- Unlimited Resources: With unmetered bandwidth, disk space, domains, and subdomains, you will be able to act as a one-stop shop where clients can register domains, get the websites off the ground, and withstand heavy traffic.
- One-Click Installers: Reseller hosting supports a variety of one-click installers, like Softaculous and Fantastico. They enable your customers to install hundreds of applications, including WordPress, Joomla, and Drupal, with just a single click. So, they can make the lives of your clients a lot easier.
- Other Important Features: Can you choose from various hosting types (shared, VPS, dedicated) and a selection of Linux- or Windows-based servers? What about money-back guarantees?
What the Reseller Package Typically Includes
The best reseller web hosting companies provide an excellent balance of standard features and reseller-specific features.
Standard features refer to what you would get with another solution, say shared hosting. You need to opt for at least 99.95% uptime, fast loading speeds, sufficient disk space, bandwidth, domain hosting, free SSL, beginner-friendly control panel, free website migrations, and quality hardware (for instance, SSD over HDD). You need to consider the selection of Linux- or Windows-based servers, email, File Transfer Protocol, MYSQL database management software, Cloudflare CDN, high redundancy level, money-back guarantees, etc.
As for reseller features, you can usually brand your own hosting company while the hosting provider remains unknown to your client, also known as white labelling. Furthermore, you can expect account management apps, such as cPanel and WHM, and billing software, such as WHMCS. At this point, you need to pay attention to a comprehensive reseller control panel and second-hand customer support.
The package itself grants you a lot, so you’ll earn on your investment even if you manage to sell it to a handful of clients. However, if you are good at sales, you will make significant profits.
Best Reseller Hosting: Final Recommendations
Reseller web hosting holds immense earning potential. Still, it all starts with the proper choice of an apex web hosting company. The provider sets your chances of success, and it can either push you towards generating profits or cut your market share from the sole start. So, it’s best to choose from the top resellers on the market, and don’t settle for anything less. While the investment might be higher, committing to one of the best reseller hosting companies will pay off in the long term.
Indeed, you’ll face some reseller risks in the process. So, preparing for the challenges from the beginning will prove beneficial. Buckle up; do your research, compare different companies, plans, and reseller features. Match your needs with the market’s offers. Then, invest in marketing and start selling. Also, remember to set reasonable profit margins that reflect your value proposition since you are entering a highly competitive niche. You have to find a way to be a different and attractive web host; you can focus on low-profit margins or superior features, say lightning-fast customer support or branded control panels.
And remember, don’t make the final say until you check the brand’s reputation. Either read our expert reviews or find other customer reviews on the web – whatever suits you best. But don’t rush into spending your money until you’re sure of one’s quality.