Is Reselling Hosting a Sustainable Business?

It is quite common nowadays for individuals to undergo attempts to start their own businesses. This could be because of the potential for increased profits, a flexible work schedule, or simply following a passion. Reselling hosting is one example of a business that you can grow from the ground up.

What is Reselling Hosting?

Web hosting is a busy field because it is something that every site needs to go live on the internet. A site needs a web host to store all its files. When a visitor tries to access the site by typing in the domain name, the files will get sent directly to their browsers.

Reseller hosting is when you rent server space from a web hosting provider, and then you, in turn, divvy it up and rent it to one or more third-parties. You will be acting as your own provider, as you will be providing hosting you can resell to your clients. The number of clients you can have will depend on which reseller hosting plan you choose, and how many cPanel accounts you can have.

Making Reseller Hosting Sustainable

Reseller hosting is a popular business idea because of the low start-up costs. You will not be responsible for investing in powerful computer equipment, multiple employees, servers, or bandwidth.

There are thousands of different hosting options for clients to choose from, making competition in the industry fierce. Due to this, your reseller hosting business will need to stand out from the crowd if you want it to be sustainable.

The best thing to do is to establish your niche target audience. Try to locate an untapped area of the market. Instead of trying to price-match the big-name providers, find an industry that needs your service. This could be hotels, restaurants, or gyms in your general vicinity. Maybe start with smaller companies at first to get started. You can reach out directly to these potential clients and explain exactly what it is that you are offering them. They may not even have a website yet, and you can help with that as well.

How to Get Started with Reseller Hosting

The first thing you will need to do is select a hosting plan that will work for you and your clients. You will need to examine the features and resources of the plans and compare them to the prices. Try to calculate whether you will end up with a profit or not. If not, scale down to the next plan. As your clients’ websites grow in size, it may become clear that they need to upgrade. At that point, you can run through the options with them. If they are willing to increase their budget, you can contact your provider to upgrade to a new hosting plan with enhanced features.

To start with, focus on disk space and uptime rate. Look for a reseller plan that has at least 150 GB SSD, so that your clients will have plenty of room for their websites’ files. In addition to this, choose a hosting provider that offers as close to 99.99% uptime as possible. This is to ensure that your clients’ websites will be down for only a minimal amount of time throughout the year. Some providers offer financial reimbursements if the server is down for longer than what they guarantee.

Customer Support

Once your reseller hosting business is up and running, customer satisfaction should be one of your top priorities. Your existing customers need to remain happy so that they renew their subscriptions with you and a loyal relationship develops. As well, satisfied customers will be more likely to spread a good word about you, gradually increasing your customer base.

As a general rule of thumb, your clients need to know that they have 24/7/365 coverage in case of technical difficulties or questions they might have. If their website is down and they do not know how to fix it, they will lose money, and then they will blame you for it.

You are the point of contact for your client. If they have issues, they will be coming to you with the expectation that you can fix their problem for them. Depending on what type of hosting plan you selected, you may be able to go to your hosting provider to find a solution. However, at the end of the day, you will be responsible for all the communication to your clients. You should prepare to receive queries from your clients in the middle of the night, or on holidays.

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