8 Common Misconceptions About Reseller Hosting

Reseller hosting can be a great way to make money online, and it has become popular with people looking to achieve location independence while working for themselves. But when researching the topic, and learning how to start a reseller hosting business, you’ll find a lot of conflicting information.

Several misconceptions about reseller hosting exist, and unfortunately, these can make it quite difficult to know who to trust. Moreover, they could stop you from taking the next step in building a successful business. So, it’s worth knowing what is and is not true.

In this guide, we’ll reveal some of the greatest misconceptions about reseller hosting. You will also learn what the truth is, allowing you to move forward with confidence.

While you don’t need a huge amount of money to start as a hosting reseller, you should not choose just any hosting provider. The option you choose will make arguably the biggest difference in whether your business is successful or not in the long run.

Your hosting provider is responsible for security, site speed (to an extent), and many other essential factors. These are essential not only for your business and reputation, but also the success of your clients. If you don’t pick something reliable and scalable, you will lose customers and have to constantly seek new ones.

There are plenty of good hosting reseller partner signs that you should look out for. Backup automation is essential, and you should also keep an eye out for multiple global servers. In addition to these, you’ll need to ensure that the hosting provider offers simple domain registration and transfers.

Tip: Verpex offers all of the above, plus much more. For example, you can manage multiple cPanel accounts and receive round-the-clock tech support. Moreover, you get free migrations and unlimited bandwidth. Sign up for a plan here.

When looking for ways to make money online, some people will seek the easiest business model. The truth, however, is that there is no such thing. Every online business requires significant time and dedication, especially in something as competitive as reseller hosting.

Rather than getting into reseller hosting because you think it will be easy money, assessing your other motivations is a good idea. Besides wanting to make money, you should enjoy the business model and want to help customers in this space. Furthermore, you must be willing to accept that the journey will be a lengthy one.

The challenging routes are often the most rewarding ones, and if you’re consistent with your reseller hosting business, you’ll reap the rewards eventually. Even if you’re strapped for time, you can start your reseller hosting business alongside your full-time job.

In a world where we’re used to instant gratification and convenience, reseller hosting will really test your resolve. Contrary to popular belief, you probably won’t make money quickly in this business model. It’ll take you at least 6-12 months to start generating a good level of income, and you also need to consider the time it’ll take you to set everything up in the first place.

Being reasonable with your expectations will ensure that you keep going in the initial early stages. Once you have overcome the starting point, things are generally much easier – and you shouldn’t have too many issues scaling in the long run.

To ensure that you’re not in a rush to make money, having other sources of cash is wise. For example, you could save 3-6 months before going full-time. Otherwise, you could consider offering freelance services if you need some extra cash. We’ve written a full guide on how to jumpstart a freelance career if that’s something you’re interested in.

Once you’ve signed up some clients, you’ll receive a monthly paycheck from them unless they cancel their contract. At that point, it’s easy to think that you can just put your feet up and never have to do any work again.

This, however, is not true.

In reality, no form of income is 100% “passive”. While your time won’t strictly be tied to money with a reseller hosting business, you do still need to show up and support your customers. At the very least, you will have to manage your team to ensure that everything is progressing as it should.

Even if you launch digital products later, such as eBooks and courses, you’ll still need to iterate and improve on these. It’s still better than your income being tied to fixed hours, but at the same time, you should set your expectations right.

Another common reseller hosting misconception is that you’re stuck with only one form of income. You simply get paid by clients to manage their websites, and that’s it. This, however, could not be further from the truth.

If you’re willing to think creatively, you can make money from reseller hosting in so many ways. For example, you could offer additional services – such as content management or web design – to your clients. This can be a great extra money-maker if you have unique skills or are willing to hire someone that does.

Away from offering services, you can diversify your income in numerous other ways. For example, you can offer courses, checklists, or eBooks. Moreover, you could share your knowledge on a YouTube channel and generate ad revenue – while also making money from affiliates and sponsorships. Podcasting is another option.

When thinking of how to diversify your income, consider your unique strengths and what interests you. Build one stream at a time so that your growth is sustainable.

Plenty of one-person business models exist, and you don’t necessarily need a big team to make money online. However, trying to become successful in reseller hosting – without any assistance – is incredibly difficult.

You have to wear many hats in reseller hosting. For example, you will have to ensure that the right technical support is in place. Moreover, you need to learn about marketing and sales.

If you don’t have a huge budget, don’t worry. Start by making smart hires; you can find talented contractors on LinkedIn and other social media sites, along with marketplaces like Fiverr and Upwork. Choosing the right hosting provider that can take some of these tasks off your plate, such as tech support, is also worth considering (and often less expensive).

Every year, you’ll see people saying it’s too late to start all kinds of online businesses. The same has been said for over a decade about blogs, and you’ll hear the same opinions when it comes to YouTube, reseller hosting, and more.

It absolutely is true that online business is more competitive than ever before. However, a “saturated” market isn’t inherently bad. First of all, it shows that there’s demand for the product or service you want to offer. On top of that, you can win by being better.

The second-best time to start is always today. If you’re willing to adapt and learn, you will be successful in the long run – regardless of how many other people are doing the same business model as you.

Website hosting in general is quite technical, and this expands to reseller hosting. If you’re not tech-savvy, this might seem scary. But fear not, because it’s actually simpler than ever to run a reseller hosting business without being highly technical.

If you choose the right hosting partner, you often won’t have to deal with many technical issues. Furthermore, you’ll have 24/7 support – meaning that if something goes wrong, you don’t have to spend hours finding the solution or waiting for an answer.

You can also delegate and outsource any tasks that you aren’t good at. Doing so will result in bigger profit margins over the long run.

One of the biggest mistakes new business owners make in general, not just reseller hosting, is focusing solely on acquisition. This, however, can quickly become a problem. Only focusing on acquisition often leads to neglecting customers, and as a result, you’ll need to constantly find new clients to work with.

Your work actually begins when the client signs a contract, not the other way around. Your role is to keep them happy and assist with any issues that may arise. An added benefit is that it’s generally much easier to upsell to a warm audience than convince those with little investment in your products or services to spend money.

Before launching, make sure you have a comprehensive retention strategy. That way, you will find it easier to keep your clients onside. Moreover, you could find it easier to get referrals – which means you don’t have to do as much marketing.

Reseller hosting is still a lucrative business model if you’re willing to be consistent over the long run. However, you must understand the most common misconceptions and do what you can to avoid being fooled by them. At its core, you can still succeed with a clear niche focus and enough dedication.