What is Reseller Hosting and How Does It Work?

The web hosting market is currently thriving, but did you know that many web hosting companies are actually resellers?

Reselling white label web hosting services allows individuals and small businesses to make money on the internet without having to maintain the server hardware themselves. The low barrier to entry and low startup costs are particularly enticing for aspiring entrepreneurs, but established web developers are also becoming hosting resellers to complement their existing services.

But what exactly is reseller hosting, and how could you become a reseller yourself? Keep reading to find out more about this potentially lucrative business opportunity and all the benefits involved.

What is reseller hosting?

Reseller hosting is a white label business approach where a web hosting provider allows another business or individual to sell their services as if they were their own. In essence, the reseller rents server space from the hosting provider, and then the customer rents server space from the reseller.

Many web hosting providers offer packages to allow resellers to access their services at wholesale prices. This enables the resellers to sell web hosting plans to their customers for a profit.

Since reseller hosting is a white label service, the customer doesn’t know that the reseller isn’t providing the web hosting themselves. As part of the reseller package, the reseller can brand and market the services as their own, whilst all of the technical details and maintenance are handled by the original hosting provider.

How does reseller web hosting work?

The first step is to choose a reseller hosting package from a reputable provider. Different providers will offer different features in their packages, so it’s important to shop around to find the best deal for you.

Another thing to bear in mind is that some providers charge a flat monthly fee, whereas others charge on a pay-as-you-go basis. Be sure to check all of the terms and conditions before choosing your package.

Is reseller hosting a good side hustle?

Yes! That’s because you can use white label products and services. Add your own branding to your offer and create your own hosting plans to sell to customers. For example, you could choose to sell the full range of common web hosting options, from basic shared hosting to powerful dedicated server hosting to appeal to a broad range of clients.

Since the web hosting provider handles all of the technical aspects of the operation, you can focus on your advertising and customer service. Most providers include straightforward, easy-to-use management platforms within their packages to help you manage all of your customers’ accounts and stay on top of admin. Through these dashboards, you’ll be able to add new accounts for new customers, allocate resources (such as bandwidth and RAM) and add email addresses and domain names. Your customers will also have their own dashboard so they can manage their own accounts.

To offer a bespoke service and increase profits, some reseller hosts will provide premium services. This can include extras such as free SSL certificates, automatic backups and even the option to buy domain names. By offering premium services, reseller hosts can offer something different to other web hosting companies and attract more customers.

Our Reseller customers enjoy access to our bespoke Reseller Hosting management interface, designed to help them manage their customers’ hosting quickly and easily.

Managed web hosting

Another option is to offer managed hosting services to your clients. In exchange for offering to manage all of the day-to-day admin, resource allocation, technical support and other extras such as scheduled backups and updates, you can charge higher fees and increase your profit margin. This type of reseller hosting could be particularly lucrative if you already sell web development services and have a dedicated audience, as your customers will already trust your business and will be more likely to opt for managed services from a reliable brand.

Is reseller hosting profitable?

Although reseller web hosting isn’t a get-rich-quick scheme, you can make a good income if you play your cards right.

The most important thing to consider is the cost of your chosen reseller package vs. the amount you can charge your customers for your white label web hosting plans. The amount you charge will depend on the features you’re offering (e.g. managed or unmanaged hosting) and the current state of the market, so make sure you do your research beforehand to discover what your customers really want and are willing to pay for. Performing market research and writing a business plan are essential before you dive into the world of reseller hosting.

To increase your income further, the next thing you look into should be customer acquisition and retention. Gaining more customers will naturally help you grow your business, so focus on your advertising and SEO (search engine optimisation) efforts to make your website more visible online and attract the attention of your target audience. Excellent customer support is also essential for earning the loyalty of these customers.

So, reseller hosting can help you make a good income, but what else can it offer you?

Benefits of reseller hosting

1. Easy to manage

With reseller hosting, the web hosting provider handles all of the technical details, including server maintenance, hardware setup, security and network infrastructure. This means you’re free to work on what you do best, such as marketing, branding, customer support and admin. And, since your customers will have access to our bespoke reseller hosting management platform to manage their accounts, you’ll be able to make an income without a huge amount of effort.

2. Scalable

The right reseller package will provide scalability for your business, allowing your hosting services to grow with you. Being able to offer more services as your business grows will help you retain customers who have more complex needs.

3. Accessible

Pretty much anyone can become a hosting reseller because you don’t need a lot of technical expertise. This makes reseller hosting extremely accessible for most entrepreneurs, but especially for those who have a bit of experience with managing shared servers.

4. Customisable

As a web hosting reseller, you can design your own hosting packages with unique features to appeal to different customers. Having these bespoke hosting packages will be a huge draw for new clients and will help you create your own niche in the market. Once these packages are put together, you can then add your own branding and market your services to the right audience.

5. Access to client websites

If you already offer web development services and are hoping to add reseller hosting to your business, the total access you get with web hosting and server management can be a huge bonus. If one of your customers has an issue with their website, you can easily access their account through your server management software and fix the issue without waiting for them to send over their login details. This prompt service could be very appealing to your current clients.

How to become a web hosting reseller

As mentioned above, reseller hosting is super accessible and easy to get into, with low startup costs and a wide variety of web hosting providers to choose from.

Here’s exactly how you can get started as a web hosting reseller:

1. Perform market research and write your business plan

With any new business venture, you need to thoroughly research the market beforehand to decide how you can carve out your own niche and attract the attention of your target audience. Think about your target market and what you can offer that aligns with their needs. How will you make your reseller packages more appealing than your competitors’ offerings?

2. Find a reseller hosting package

With so many reseller packages on the market right now, it’s important that you do your research to find the best one for you before becoming a reseller. Key features to look out for in reseller packages include:

24/7 UK telephone support: If something goes wrong, you need to be able to contact your provider as soon as possible so you can ensure excellent service for your customers. Expert technical support will also be invaluable for resellers who don’t have much prior experience with web hosting.
Strong brand reputation: Before you choose a web hosting provider, check their reviews to see what other customers and resellers think. If your provider isn’t offering expert technical support, quick page loading speeds and robust security, this will have a negative impact on the service you provide to your customers.
Straightforward management systems: You need an easy-to-use and intuitive interface to manage your customers’ accounts, especially if you’re new to the world of web hosting.
Attractive offerings including unlimited webspace, email and subdomains: What can you offer that makes your reseller hosting business stand out from the competition? Choose a web hosting provider that includes in-demand features that your target audience will appreciate.
Robust security for your peace of mind: You’ll be responsible for your customers’ data, so it’s essential that your reseller hosting package offers the best security and data protection, such as firewalls and data backups.
The ability to upgrade your plan when needed: As your reseller business grows, you’ll need your hosting package to grow with you. Choose a web hosting provider that will let you easily upgrade your plan to host more customers or add extra features.

Overall, it’s best to look for a provider that offers dedicated reseller packages, as this will make it much easier for you to set up your reseller business. It’s also important to choose a host that offers excellent support and an easy-to-use dashboard for customer management, especially if you’re new to web hosting.

3. Set up your hosting services

Once you’ve chosen your reseller hosting package, it’s time to set up your server so you’re ready for your first customers. Your chosen provider should give you detailed instructions and support to help you set up your dashboard, and they should also be able to help you configure different settings so you can tailor your web hosting to your customers. For example, you should be able to use your dashboard to manage resource allocations and add extra features, such as automatic backups and scheduled updates.

4. Market your web hosting services

Finally, you’ll need to attract customers to your hosting services. As reseller packages are white label products, you’ll be able to attach your own branding and marketing to your hosting services – this is especially useful if you already have a dedicated customer base that’s already loyal to your brand. Next, you can start advertising your services through multiple avenues, such as paid advertising, SEO, social media, and customer testimonials.

Common questions about reseller hosting

Do I need to be a hosting expert to be a hosting reseller?

No! While some experience with web hosting or web development could be helpful, anyone can get into reseller hosting. Your web hosting provider will handle all of the technical details for you and provide an easy-to-use customer management interface, allowing you to focus on your branding, admin and marketing efforts.

Can reseller hosting grow with my business?

If you want your hosting to scale with your business, you need to choose a web hosting provider who advertises easy plan upgrades. With companies like Fasthosts, you can either add features (such as disk space) to your existing plan or easily migrate to a more powerful hosting plan.

What are the benefits of reseller hosting?

Make money without needing technical knowledge or having to maintain a server yourself.
Brand your provider’s web hosting services as your own.
Expand your offerings to your customers if you already own a web development business.
Easily manage your customers’ accounts with a bespoke interface.
Design your own hosting plans and packages for your clients.

Will my customers know I’m a reseller?

No, your customers won’t know that your web hosting services aren’t actually provided by you. Since reseller packages are white label, you can add your own branding and no one will know that you’ve bought a reseller package from another web hosting company.

How can you start your reseller career?

Here are the basic steps to getting started with reseller hosting:

Choose a web hosting company and reseller package.
Research your target market and write a business plan.
Design your own web hosting packages for your customers.
Set prices for your packages.
Market your web hosting services and earn a profit.

If you’re hoping to get into reseller hosting, we offer an excellent range of reseller products, including WordPress Hosting, Domain Names, Cloud Servers and Dedicated Servers. Want to learn more about our white label reseller offering? Chat to our sales team now.