How Does Reseller Hosting Work? Functions, Value & Rewards

Reseller hosting works by allowing an entrepreneur to rent server space from a large hosting platform and then resell that space to third-party clients under their own brand.

It's like having a giant pizza and selling slices to your friends. The pizza place makes the pizza, and you share it with others who want a piece. In this example, the pizza place is the hosting company, and the pizza slices represent internet space for people's websites.

7 Core Factors in Operation

Reseller hosting lets you start your own business using the server space from big hosting companies. Even though they handle the technical stuff, you can't just sit back—success in reselling means managing a lot of details.

Knowing a bit about the tech side can help you answer customer questions and talk to your hosting team better.

Let's look at the key things to think about.

1. Domain Name and Website

• Acquire a domain name and build a professional, brand-aligned website.
• Engage professional help or use a platform with a user-friendly website builder if needed.

2. Technical and Customer Support

• Set up a system for managing client inquiries, ideally 24/7.
• Initially, consider outsourcing this to your hosting platform's team to free up your focus for sales and client acquisition.

3. Billing

• Establish a customer management and billing dashboard to handle subscriptions.
• Consider tools like WHMCS that automate invoices, payment reminders, and offer integrated customer support.

4. Business Goals

• Define clear, niche-targeted goals for your reselling venture.
• Consider focusing on a specific business type or local SMBs to reduce competition and build personal relationships.

5. Budgeting and Price Range

• Factor in all costs - advertising, marketing, staffing - in your business model.
• Don't undersell or oversell; instead, position your reselling business as a premium service by adding value to basic packages.

6. Marketing and Promotion

• Develop a marketing strategy, considering options like targeted ads and local outreach campaigns.
• Perform target audience analysis before deciding on a web hosting partner and understand what makes you different.

7. Creating Reseller Packages

• Tailor hosting packages and tiers based on market research and customer wants.
• Consider offering additional services, such as website design or a full-fledged digital marketing agency.

1. Web Server and Database

• The web server, where all client data is stored, uses 'name-based virtual hosting' for cheaply managing multiple websites.

2. Mail Server

• Manages all client email needs.
• Check your host's email services as clients may inquire about supported email platforms.

3. DNS Server

• The DNS server lets you create subdomains for clients, redirect traffic, and allow clients to create their own branded server addresses.

4. White Label Server

• White label server allows you to resell without your clients knowing, ensuring full control over your business branding.

Resellers will buy up a set amount of server space from a large web hosting platform, before then selling this on to their own clients.

It’s best operated as a full-time business, and the reseller has total control over branding and pricing.

For a deeper understanding, additional details, and more information about reseller hosting, be sure to check out our comprehensive article, "What is Reseller Hosting?", featured on our blog.

Businesses can access their hosting services with cloud-based reseller hosting from any location, enabling them to swiftly and efficiently extend their hosting environment as needed.

Cloud-based reseller web hosting provides various advantages for small businesses, including cost-efficiency, scalability, and flexibility. This approach involves renting web hosting space from a third-party provider, promoting cost savings and control. The key benefits include:

Universal Accessibility
Cloud-based reseller hosting allows access from any location, facilitating rapid expansion as needed.

Expanded Service Range
It provides access to a broad array of products and services typically not included in traditional hosting packages.

Ease of Management
The hosting provider usually handles server management and support, enabling businesses to focus on their core operations.

Additional Tools and Services
Cloud-based reseller hosting often includes useful tools and services, such as automated backups and security features, enhancing the hosting environment's optimization.

Cost-Effectiveness
With no need for hardware investment or IT staff for hosting management, cloud-based reseller hosting often proves more cost-effective than standard hosting services.

Due to these benefits, cloud-based reseller hosting becomes a favorable choice for businesses of all sizes.

It is critical to understand the restrictions of reseller hosting. You don't have full control over the servers and their setup as a reseller.

Furthermore, you will not have complete control over the hosting of your customers' websites. This implies you'll have to rely on your reseller hosting provider to provide a reliable and secure hosting environment for your customers.. It's also worth noting that, depending on the hosting provider, you may be restricted in the hosting options and services you may provide to your end customers.

To guarantee that your clients are content with the hosting service you give, you must devote time in researching the parent hosting company and learning about the features and services they provide. Also, it is critical to pay attention to client evaluations and feedback to ensure that your hosting meets their expectations. You can successfully run your reseller hosting business if you understand the restrictions of reseller hosting and work with a reputable hosting firm.

Starting a reseller hosting business involves meeting several legal and regulatory requirements. To ensure that you remain compliant, here are seven key requirements to keep in mind:

1. Register your business in the jurisdiction where you plan to operate
2. Comply with data protection and privacy laws
3. Ensure that your hosting services meet industry standards
4. Have the necessary cyber security measures in place
5. Provide clear terms and conditions for your hosting services
6. Be transparent about the fees and costs associated with your hosting packages
7. Explain how customer data is used and stored.

While reseller hosting has many benefits, security should be given first priority. The security of all the websites you host and maintain is your responsibility after you become a reseller. There are a few factors that should be taken into account in order to secure the security of your clients' websites.

• Be sure your reseller hosting provider has the highest standards of security controls, including a secure control panel, secure FTP, and firewalls.
• Keep a regular eye out for any harmful activity or security lapses on your clients' websites.
• Make sure your clients use secure passwords for their websites.
• Check the security and up-to-dateness of every script and piece of software you install on clients' websites.
• Periodically backup all the information on the websites you work with.
• Inform customers of recommended security measures.
• When conducting any online transactions, use a secure online payment gateway.
• Ensure that any harmful attacks on your reseller hosting server are prevented.

Are you looking for ways to promote your reseller hosting business? Reseller hosting can be a great way to generate additional revenue for your business, but it can be hard to stand out in an increasingly competitive market. Here are 10 ideas to help you promote your reseller hosting business and stand out from the competition.

1. Make use of social media: Social media is a fantastic tool for spreading the word about your reseller hosting company. On a number of sites, you may set up profiles, provide updates about your offerings, and interact with possible clients.

2. Build a Website: Building a website for your reseller hosting company is a terrific approach to advertise and describe your services. Make sure your website has clear pricing information and is SEO-optimized.

3. Employ Paid Advertising: Promoting your reseller hosting company with paid advertising can be quite effective. To target potential clients, you can utilize paid advertising on social networking sites or search engines.

4. Provide Discounts: Providing discounts or promotions might be a good approach to draw in new clients. Customers that sign long-term contracts can receive unique bundles or discounts on your services.

5. Participate in Trade Shows: Attending trade exhibitions and other business events will help you advertise your reseller hosting company. You can set up a booth, meet possible clients, and network with other business people in your field.

6. Speak with Influencers: Influencers can help you advertise your reseller hosting company. You can get in touch with influential people in your field and give them discounts or other rewards for promoting your products.

7. Publish blog posts: Blogging on reseller hosting-related subjects might help you gain more visibility and draw in new clients. Make sure your blog postings have clear calls to action and are useful.

8. Employ email marketing: Email marketing can be a useful tool for informing clients about new products and deals. Email marketing can be used to provide newsletters, advertising emails, and other information regarding your reseller hosting company.

9. Engage in Internet Communities: Joining in online reseller hosting groups can be a terrific method to promote your company. You can participate in forums and discussion boards to interact with possible clients and respond to their inquiries.

10. Networking: One of the finest ways to advertise your reseller hosting company is by networking. To locate consumers and learn more about the market, you can network with other industry professionals and go to networking events.

If you already run a business in a related field, like web development, marketing, graphic design, or a digital marketing agency, then adding a reselling business as an additional income stream could prove very lucrative for you. In fact, those that manage to bring in a large number of clients can even find they start to get more income from reselling than from their primary business.

We’d recommend it for those that have additional time and resources to devote to something new. While it does take a lot of initial groundwork to get going, the dividends only increase the longer you spend as a reseller.

However, it’s definitely not for those that think it’s a chance for easy money. It’s true that you can quickly and easily sign up to a hosting platform and start reselling, but many underestimate the effort it takes to build a strong client base. If it’s a challenge you like the sound of, why not head on over to our reseller page and see if you can find a reseller package that grabs your eye.