Is Reseller Hosting Worth It?

Written by Web Hosting Expert

Reviewed by Technical Editor

Updated March 21, 2023
Is Reseller Hosting Worth It?

Every business needs a website, and hosting is in very high demand right now. The web hosting industry is currently booming. Business owners and entrepreneurs are using this growth opportunity to start their own reseller hosting companies.

What Is Reseller Hosting and How It Works?

Reseller hosting is when the hosting provider rents bandwidth and hard drive space to another company, which later rents the bandwidth and hardware space to third parties.

To establish reseller hosting as a service you provide, you need to research and pick the best reseller hosting parent provider. Choose a reseller package that meets your needs. Create your own branded hosting packages and decide what their price is going to be.

In order to locate your new customers, you will need to understand and know what your target market is.

Lastly, you need to sell the hosting packages to your clients and earn income from them.

Reseller Hosting Advantages and Disadvantages


Easy to start: If you’ve ever thought about starting your own hosting business, then reseller hosting is the perfect choice for you. With reseller hosting, you won’t have to worry about any technical issues like fixes and updates in the infrastructure, server and hosting security and safety, and server and hosting maintenance costs.
Scalable : Rather than being stuck in a prefixed amount of resources you get with a normal hosting plan, reseller hosting users decide and take control of how much website space and bandwidth they want.
Offers Great Prices: Buying a bulk plan of small servers or a hosting plan, mainly a dedicated server, from a hosting company is quite cheap. You can earn money and offer great prices to your clients by making it into smaller parts and selling it to your clients.
Offers Great Prices: Buying a bulk plan of small servers or a hosting plan, mainly a dedicated server, from a hosting company is quite cheap. You can earn money and offer great prices to your clients by making it into smaller parts and selling it to your clients.
Building your brand: Even though you are selling the services of another web hosting provider, reseller hosting allows you to build your own brand and identity. Third parties won’t know that you are renting from another hosting provider.

Competitive market: The reseller hosting business is quite a competitive space for opening up a business. The barrier to entry is low because it’s such a large competitive industry. It’s going to take some effort and time in order to see the results of your work.
Limited control: With reseller hosting, you don’t have to deal with any technical issues on the servers. However, this also means that you won’t have control over the servers and their configuration.
It’s time-consuming: To start seeing some people roll into your business, it will take a lot of branding and marketing that be quite time-consuming. The hosting business will be dependent on the branding of your business.

Understanding Reseller Hosting Costs

The upfront cost of reseller hosting consists of the price of buying the hosting package from the web host as well as any other services or features you might require. This price could vary from a few dollars per month to hundreds of dollars per month, depending on the web host. The price of domain registration, SSL certificates, and any other features you could require must also be taken into account.

Your choice of reseller hosting plan may come with extra expenses, depending on the kind you choose. For instance, you could have to pay extra for bandwidth upgrades or backups and storage. Some web providers may also charge extra for customer service or technical assistance.

The time needed to administer the reseller hosting account is another expense to take into account. In addition to managing customer accounts, you'll also need to make sure that the web hosting services are running well and offer customer assistance. You may need to hire more workers to help with the task since this can take a lot of time.

Finally, if you provide consumers with web hosting services, you might need to buy extra gear or software to satisfy their needs. More servers, storage options, or other tools may fall under this category.

What is the Profit Margin for Reseller Hosting?

The profit margin for reseller hosting might change based on the hosting plans and any services you provide. The profit margin might be fairly substantial if you are able to offer reasonable rates and dependable services. A few elements that may have an impact on the reseller hosting profit margin are listed below:

Hosting package prices: When determining the profit margin for reseller hosting, hosting package prices are a crucial consideration. Your profit margin will rise if you are able to provide trustworthy services at affordable pricing.

Sales volume: A key element in determining the profit margin for reseller hosting is sales volume. You will be able to raise your profit margin if you can grow your consumer base.

Service-level quality: Your profit margin will be impacted by the level of service you offer. Your client retention rate will rise if you are able to deliver dependable and high-quality services, which will boost your profit margin.

Branding: When determining the reseller hosting profit margin, branding and reseller hosting marketing strategy are crucial elements to take into account. Gaining more clients and boosting your profit margin are both possible if you can build a strong, recognised brand.

Who Do We recommend A Reseller Hosting Business To?

A reseller hosting business is a great option for anyone who is looking to make additional income in their life.

It’s ideal if you already offer services like web design or web development because you already have an audience and potential customers for your reseller hosting packages.

How to Develop a Business Plan for a Reseller Hosting Company

Creating a business plan for a reseller hosting company is an important step in starting and running a successful business.

When making a business plan for a reseller hosting company, it's important to do a lot of research on the competition and the hosting industry. This research should include an analysis of the target market and potential customers, as well as an understanding of the services that a reseller can offer. Also, the business plan should include how much money will be needed to start the web hosting business. This includes costs like server space, web hosting, and domain name registration.

The business plan should also consider the revenue model for the company. This includes marketing and sales plans for the reseller hosting services as well as pricing strategies.

For example, reseller hosting companies may offer discounts for long-term reseller contracts or different packages for different levels of service. The plan should also say how customer service will be handled and what other services the reseller hosting company might offer.

Finally, the business plan should include a financial plan. This includes a budget for the business and estimates of how much money it might make and spend. The plan should also include ideas for managing cash flow and cutting costs.

Advertising Your Reseller Hosting Business

Promoting your reseller hosting company is crucial for bringing in clients. You must develop a marketing and advertising plan that will reach your target market if you want to make sure that your company stands out from the competition. This might involve building a website, advertising your products on social media, and using search engine optimization ([SEO]{(entry:blog/16-seo-tips-for-small-businesses})) to boost the visibility of your website. Here are some pointers for marketing your reseller hosting company:

Building a reseller hosting website: A website is a crucial component of marketing your reseller hosting company. You will be able to exhibit your services and reach your target market thanks to this. The website may also be used to offer further details about your hosting plans and customer service.

Social media promotion: Using social media to advertise your products and connect with potential reseller hosting customers is a successful strategy. You may advertise your services and draw new clients through websites like Twitter, Facebook, and Instagram.

Search engine optimization (SEO): SEO is a crucial strategy for boosting the visibility of your website in search engine results. Your website's visibility in the search results may be improved by optimizing it using the appropriate terms and phrases. This will assist you draw in more clients and boost your revenue.

What Makes A Reliable Reseller Hosting Provider?

When looking for the best reseller hosting provider, make sure you consider the following factors:

Customer support

Customer support

You will need support when technical issues arise. You will get 24/7 customer support if you’re getting your hosting from a proper hosting provider. With good customer support, you can easily get your business back online in case anything goes wrong.



One of the most crucial services you can receive from a hosting provider is backups. Make sure that you ask if backups are included in your package since not all hosting companies offer this service as a part of your package.



A proper hosting provider will offer you a wide variety of security features, and you will get to decide which ones are important to you, depending on what kind of site you want. For instance, the requirements for security of an eCommerce portal are slightly different from that of a personal blog.



Bandwidth describes the level and quality of data and traffic permitted to transfer and travel between your site, the internet, and users. Different hosting companies offer different levels of bandwidth. This can indicate which hosting company has the best system, connections, and networks. You don’t need to worry that much about bandwidth if you’re a small business with a smaller amount of monthly visitors to your site.

5 Steps to Analyze Your Reseller Web Hosting Performance

Understanding how your website is performing and what needs to be changed requires analyzing the performance of your reseller web hosting. Here are the steps to analyzing your reseller web hosting performance:

Step 1. What do you hope to achieve with your website? That is the first step in choosing a web host. Know what you want to accomplish with your business and how web hosting can help you get there.

Step 2. Track vital metrics like server uptime and response times to ensure your website is performing optimally. As a result, you'll be better prepared to spot problems and implement solutions.

Step 3. Evaluate customer feedback: keep tabs on user comments on a regular basis to learn more about the user experience and how to enhance it.

Step 4. Analyze competitor performance: Monitor competitors to see how their websites are performing and what changes they have made to their web hosting strategies.

Step 5. Identify resource bottlenecks. Find the weak spots in your resources by analyzing things like your bandwidth and storage needs.

Is Reseller Hosting Worth It: Bottom Line

To sum it up, if you’re looking to get into the web hosting business, reseller hosting can be quite a lucrative option. However, in order to make your business successful, you will need to put in the effort and time.

Make sure that you research your reseller hosting provider and ensure you choose one that best suits your needs.

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.

What’s included in a reseller package?

Reseller packages commonly include disk space, domain hosting, bandwidth, the latest cPanel control panel, premium support by the hosting providers, the ability to brand your own web hosting company, and so on.

How can I monitor the bandwidth usage of my accounts?

To monitor the bandwidth usage of your resold accounts, go to WHM -> View Bandwidth Usage

Do I need previous experience to use the reseller control panel?

Of course, having some prior experience with cPanel will go a long way, but our state-of-the-art system is designed to maximize ease of use while offering the full suite of configurability.

Plus, you’ve got the Verpex tech support team with you to help with any issues you or your customers are facing, so if you need any guidance on getting the most out of your reseller control panel, just let us know.

We’re on hand to help, Chat Now

What restrictions are there to reselling?

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

Will my clients know I’m reselling?

No. If you use White label servers your customers will never be able to connect you to your host partner.

Am I responsible for my clients' content/behaviour on your servers?

Yes, you are responsible for what your reseller hosting clients upload on our servers.

Can I upgrade my business over time?

According to the demands that your business has, you can elevate your reseller hosting account at any moment.

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.

What does white label hosting mean?

This means that your clients won’t know you’re a reseller. Your hosting platform will provide unnamed servers that you can rebrand to fit your business, and you’ll appear as the primary provider.

You can learn more about white label hosting on our blog.

Can you make money with reseller hosting?

You definitely can. 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.

Read our article to learn more about web hosting business income.

Do you offer control panel customization for resellers?

You can customize your control panel in whichever way you want, thanks to the white-label service we provide.

Is it possible to have ssh access enabled for individual accounts upon request?

As a reseller you have the option to enable/disable ssh access for your customers, more information on how to do this is found HERE

Julia Raznik
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Julia Raznik
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