How to Resell Hosting? A Roadmap for Success and Expansion

Written by Web Hosting Expert

Reviewed by Technical Editor

Updated May 16, 2023
How to Resell Hosting? A Roadmap for Success and Expansion

To resell hosting, define your offering, choose a hosting platform, select a suitable package, and create customer-centric packages. Prioritize customer service, have a marketing strategy, and use a control panel for managing customers and billing.

To resell hosting is like selling cake. You need to choose what you want to sell, find a place to sell it, create different options for people, make sure customers are happy, advertise, and manage money.

How to Resell Hosting: 10 Steps


Steps to Resell Hosting

Step 1 - Define Your Offering

  • Start by identifying a unique niche and defining your service offering. Consider areas you're passionate about and shape your hosting service around that. Success often comes from solving a problem experienced in the past.

Step 2 - Compare Hosting Platforms

  • Analyze various hosting platforms offering reseller services. Don't opt for the cheapest; instead, review features, tools, and customer service integrations. Use online reviews and comparison charts to guide your decision. Take advantage of free trials or money-back periods to test different platforms before committing.

Step 3 - Choose an appropriate hosting package

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Once you’ve found a hosting platform, you’ll need to choose the best package for your needs.

Generally, different tiers will offer management of more websites, more memory and more bandwidth at each subsequent level, so your decision will largely be based on how many clients you want to sell to.

However, keep an eye out for some of these little extras that might help sway your decision:

  • Free installation of a billing and customer management dashboard
  • Daily backups of customer data,
  • Free SSL certificate
  • Strong security controls

Step 4 - Decide on Hybrid or Dedicated Servers

Hybrid vs Dedicated Servers
  • Start with hybrid servers for shared client space.
  • Consider dedicated servers for premium, one-user-per-server services.

Step 5 - Managed or Unmanaged Service

Step 6 - Write a Business Plan

  • Formulate a comprehensive plan considering potential clients, budget, and staffing.
  • Partner with a hosting service that allows flexibility to scale.

Step 7 - Prioritize Customer Service

  • Focus on customer-facing aspects with a managed service.
  • Utilize integrated customer service tools from your hosting platform.

Step 8 - Develop a Marketing Strategy

Step 9 - Create Customer Packages

  • Design packages around your core offering with industry-standard features.
  • Understand restrictions from your hosting platform when creating packages.

Step 10 - Implement a Control Panel for Customer and Billing Management

Reseller Hosting: Rent, Rebrand, and Resell


A reseller will rent a set amount of server space from a large hosting platform, before then selling on that space to third-party clients.

The reseller gets to promote the service under their own company name, as well as provide unique extras that might not be available from the primary host.

It’s a particularly popular choice among businesses already working in the digital space, and you can find more details over on our reseller hosting page along with reseller hosting packages provided by Verpex..

A Closer Look at Reseller Hosting: Benefits and Limitations


Benefits

Low barriers to entry - Even those lacking experience in the web hosting field can jump in and give it a try
It’s a chance to grow your brand - reselling is the perfect opportunity to expand the brands of those working in digital industries
It’s relatively inexpensive - Introductory packages can usually be found between $10 and $20 per month
Support is constantly improving - As reselling becomes increasingly popular, web hosting platforms are pulling out all the stops to attract new customers with impressive support options
Limitations

You’re restricted by your partner platform - You’re totally dependent on your web hosting platform for uptime and feature compatibility
It’s hard to compete on price - In a crowded market, it can fast become a race to the bottom. Find other ways to make your service stand out as unique besides you price point

Understanding Your Reseller Hosting Target Market


To gain consumers for your reseller hosting business, you must first determine your target market and then build hosting packages that fit their requirements. This includes investigating the types of websites they want to host, the functionality they require, and their budget. Here are a few pointers to help you understand your reseller hosting target market:

• Study website types: Understanding the types of websites that your target market is looking to host can help you select which hosting packages to provide. Blogs, ecommerce sites, and other types of websites are examples of this.

• Features and budget: Knowing the features that your target market needs, as well as their budget, will help you build hosting packages that match their requirements while remaining within their budget. This can involve providing various storage and bandwidth options, as well as additional capabilities such as website builders or email accounts.

• Develop packages: Once you understand your target market better, you can create hosting packages that will attract and maintain consumers. This includes developing packages with varying features, pricing, and other value-added services that will distinguish your hosting packages from the competitors.

From Idea to Implementation: How to Get Started with Reseller Hosting Business


Embarking on a reseller hosting business can be an exciting and profitable venture, but it requires careful planning and strategic execution. Before you dive into the world of reseller hosting, consider these essential steps to set yourself up for success and create a thriving business:

Address legal aspects: Register your business, obtain necessary licenses or permits, and ensure compliance with local, state, and federal regulations.

Research your target market: Identify the needs and preferences of potential clients to tailor your reseller hosting offerings accordingly.

Set up terms of service and privacy policy: Draft clear and comprehensive documents outlining your business policies to protect both you and your clients.

Develop a pricing strategy: Determine competitive pricing for your hosting packages based on the market and your target audience.

Set up a billing and support system: Implement a user-friendly billing platform and provide excellent customer support to ensure client satisfaction.

Develop a strong brand identity: Create a memorable logo, website design, and marketing materials that convey your unique value proposition.

Collaborate with strategic partners: Form partnerships with complementary businesses, such as web designers or developers, to expand your client base and improve your service offerings.

Monitor and adjust: Continuously evaluate your business performance, address customer feedback, and make necessary adjustments for ongoing success.

Stay updated with industry trends: Keep abreast of technological advancements and market shifts to adapt your business strategy and maintain a competitive edge.

For more valuable tips and insights on starting a reseller hosting business, we invite you to read our informative article, "How to Start a Web Hosting Business," available on our blog.

Who Would Benefit From Being a Reseller?


  • Web developers - If you’re already building the website for your clients, why not manage their hosting needs too? Reselling is the perfect complementary addition to your business

  • SEO and marketing professionals - Another great industry that fits right in with reselling. Not only can you optimize your client’s website for Google, but you can also actively make sure they’ve got all their keywords and meta tags covered in the back end of the site when they host with you too

  • People looking to start a brand new business - You don’t need a lot of experience to get started as a reseller. There’s no denying it’ll be a lot of hard work, but if you’re willing to learn, and have the time to put forward, this could be a fresh start for you

Customer care for your reseller hosting clients


It's crucial to keep in mind that you're selling your customers more than simply reseller hosting plans; you're selling them quality support.

From the time a customer initially signs up with you until they decide to leave, you should work to establish a customer-centric experience. Don't be afraid to go above and beyond if it means keeping a happy customer. Be sure to react to their questions promptly, offer helpful guidance, and don't hesitate to go the extra mile.

There are a few crucial actions you should do to guarantee you're giving the greatest service possible:

• Have a strategy for handling customer inquiries: Ensure that you have a mechanism in place for promptly addressing inquiries from customers. Prioritize the most pressing requests and allocate them to the most relevant team member.

• Provide valuable materials: Help your customers make the most of their hosting bundle by providing them with informational resources like FAQs and tutorials. When your company expands, think about building a knowledge repository containing the most frequently asked questions' answers.

• Invest in customer service software. Effective software may assist you in managing customer inquiries and delivering a coordinated and effective customer support experience. Consider investing in a customer support system that allows you to track client complaints and difficulties, as well as a live chat option for more urgent queries.

• Keep in touch: Remind customers to check in with you and to learn about any new services or features you may be offering. By doing this, you can foster consumer loyalty and keep them coming back.

• Provide incentives: Reward clients for their loyalty with discounts or free services. Depending on what your consumers require, this could be anything from free domain names (like we at Verpex do) to free website design.

These actions will help you make sure your clients are satisfied and keep them coming back for more.

The Role of Databases for Reseller Web Hosting


Databases are an essential component of reseller web hosting. They provide an efficient way for customers to store and retrieve data, which can be used for many purposes, including website and customer management, online payments, and more.

Databases are also an important part of reseller web hosting security because they store information in one place that can be used to protect data and stop unauthorized access.

By using databases, resellers can provide customers with a secure and reliable platform for hosting their websites and applications. Additionally, databases can help resellers manage customer data, monitor performance, and ensure the availability of services. In short, databases are a vital part of web hosting and are essential for successful reselling.

Understanding How Email Works With Reseller Web Hosting


Email is an essential component of web hosting, and with reseller web hosting, you can manage your own email accounts. Reseller web hosting makes it possible to:

• Establish sub-accounts that are linked to your primary hosting account

• Assign an individual email address to each sub-account

• Manage your own email accounts

• Manage the incoming and outgoing email traffic

• Personalize email features including mailing lists, spam filters, and email quotas

With this potent tool, you can provide your customers with the best email experience possible.

Importance of Data Backup in Reseller Hosting


Reseller hosting wouldn't be complete without the data backup feature. If you care about the privacy and security of your customers' information, you need a data backup system that works.

With a reliable data backup system in place, you can quickly restore lost information and resume operations with minimal disruption. Some advantages of data backup in reseller hosting are as follows:

  • The potential for downtime due to data loss is mitigate
  • Allows for speedy information retrieval
  • Data breaches and unauthorized access are less likely to occur.
  • Builds confidence and loyalty amongst your clientele
  • Increases the reseller host's performance overall

Summary


If you’re someone that loves a challenge, and isn’t afraid of a little hard work, now is the perfect time to get into the reselling game.

As you’ve seen from our guide here, there’s a lot of groundwork to be done upfront, and your business will need a lot of attention for it to remain successful. However, for those that plan appropriately, understand the risks, and are fully aware of the work that needs to be done, it can be an incredibly lucrative and rewarding business to get yourself into.

If you’d like to know more, why not head on over to our reseller hosting plans page to find out what’s on offer.

Frequently Asked Questions

What is reseller hosting?

Reseller hosting is essentially a way for you to purchase hosting resources from us in bulk and then to re-sell those resources directly to your clients. You can set limitations on disk space, bandwidth, email usage, and other features on a per-package or per-site basis. We provide a completely managed service from a technical perspective - the server space, hosting resources and support come from us and you are responsible for supporting your end-user clients. You can even brand your clients' cPanels with your own logo for a super professional image.

But reseller hosting isn’t just for web designers, agencies and start-up hosting companies - it’s also a great option if you run a lot of websites personally. Because you have access to WHM, you can create each site with its own separate cPanel. This means each site or client gets their own login to manage their own hosting settings, isolating them completely from other users on the same server or under your account. This improves site performance and resiliency from malware attacks.

We have a lot more information on what is reseller hosting on our blog.

Can you really make money through reselling?

Yes. There are countless success stories from entrepreneurs that have managed to take on hundreds, even thousands of clients. Just be aware of the work you’ll need to put in.

How long does it take to become a reseller?

In theory, you can be up and running in just a few minutes. However, only those that have done diligent research, and have written a clear business plan will succeed.

Affiliate program vs reseller hosting: What is the difference? Which is better?

Both have advantages and disadvantages and one isn’t better than the other. Rather, each will be better in different circumstances.

Those looking to build a business should try reselling, while those wanting passive income should become affiliates.

You can learn more about the differences between reseller hosting and affiliate programs on our blog.

Will my hosting business be anonymous?

Yes, through the use of Whitelabel reseller servers, your customers won’t know you’re reselling.

How do I deal with customer support queries?

Most new resellers will use support channels offered by the web hosting platform. Although customers can direct all queries to you personally, or your own customer service team, if you wish.

What experience do I need to get started?

Most resellers have at least a basic understanding of the industry, but you don’t need any detailed technical expertise to get started.

Can I expand my reseller plan as my business grows?

As your business grows, you need a hosting partner that offers the scalability you need to maintain uptime and your availability to new business.

The unlimited reseller plan, designed for the most comprehensive needs, comes with a maximum of 100 cPanel accounts, but should you need more than this over time, you can simply sign up for another unlimited membership to effectively double the number of accounts you can offer.

Whether or not you want this new account to be applied to the same server or an entirely different one is up to you.

How can I create custom plans for each individual account?

You can get the step-by-step procedure to create custom plans for an individual account in this guide

What restrictions are there to reselling?

There are no restrictions to reselling, except for contents that are illegal or against our terms of service

Julia Raznik
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Julia Raznik
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