Benefits and Drawbacks Of Shared Hosting
Benefits
Great value for money - There are so many hosting providers to choose from these days, that anyone looking to start a business can get a website up and running for just a few dollars per month. Sharing server space with other business owners and entrepreneurs means you all benefit from cost savings
It’s easy to get to grips with - Your hosting provider will provide all of the technical support, set up instructions and administration of servers. You just need to worry about perfecting the style of your website
Impressive customization tools - A lot of platforms these days offer intuitive website building tools and a comprehensive range of add-ons. These are made easy to understand for beginners, and they enable you to create some pretty awesome-looking websites. Simply choose your template, make some tweaks and you can have a site up and running in hours
Easy to scale - Since your data isn’t stuck on just one server, it’s really easy to scale up your business when you grow. If you need more memory and bandwidth, the hosting provider can simply allocate you more in another shared server for an additional cost
Compatible with content management systems - Most shared options can be used easily with the likes of WordPress, Joomla and Drupa
Drawbacks
More vulnerable to security issues - While hacks of major hosting platforms are certainly rare, being in a shared server solution presents greater security risks. If one website comes under attack, there’s a chance every other site sharing that space could be at risk
Fewer customer support options - Being the cheapest package offered by most platforms, you’ll often find that support channels are often more restricted. You could find you’re missing access to a phone line or live chat, and will just be limited to email tickets only
Limited modification tools - You’ll usually have quite a strict set of applications you’re allowed to install on the server. This cuts down on the sort of advanced modification options sought after by many web developers
Interested in learning more about the advantages and disadvantages of shared hosting? Check out our in-depth article, "Pros and Cons of Shared Hosting," for a comprehensive analysis
Upsides and Limitations of Reseller Hosting
Upsides
- It can be used as an additional revenue stream - This is one of the most common reasons people will go for the reseller option. By selling on hosting space you can create the perfect complementary sideline for your business, or even use it as a full business model
- White label hosting - You get full control over the branding of any services you sell on. Your customers won’t know you’re selling on space from another provider
- Personalized control panels - While shared hosting is restricted to just on management account, reselling allows you to create tailor-made web hosting solutions for your clients
- Your host will cover any technical issues - Your chosen platform should resolve any back-end issues, and will be responsible for the uptime of your sites. This gives you more time to focus on the important stuff, like perfecting your customer service skills and site customizations
- Increased feature-set - You’ll usually find far more features in a reseller package than you would with a simple shared hosting option
Limitations
- You’re dependent on your web host - If your host is having server issues or technical issues, then this will have a knock-on effect on all of your own customers. Choosing the right platform can make or break your business
- It can be expensive - Costs can quickly mount when reselling, and we’re not just talking about the price of server space. You’ll also need to consider a marketing budget, potential staff hires as you grow, and paying for additional customer service channels
Those that might not have the time and resources to put into reselling might want to opt for an affiliate program as an alternative.
Here, you won’t be selling a service under your own brand name, but will instead be driving customers to your chosen affiliate in exchange for a percentage of the sale.
Summary
Now that you’ve got a clearer understanding of how each type of hosting works, it should hopefully make it easier for you to come to a decision that’s best for your business model.
Those just starting out on their business adventure, like bloggers, freelancers and hobbyists would be better off going for a shared hosting plan. While those looking to start their own web hosting business, that wants to add an additional revenue stream, or simply have a lot of sites to manage, should get signed up as a reseller.
These are, of course, just general rules to follow, and everyone’s personal situation will be a little different. Always make sure you do thorough research and due diligence before signing on the dotted line with whichever hosting contract you end up going for. Luckily, most providers offer a 30 or 60-day money-back guarantee, so it’s never been a better time to give it a try.
Frequently Asked Questions