VPS Reseller Hosting = More Revenue, Less Headache

When starting a reseller hosting business, it isn’t enough to just think about finding clients. Each one will have different needs, meaning that you need to consider varying hosting options. Virtual Private Server (VPS) hosting is one of the more advanced options, and as a reseller, having it as part of your toolkit is a good idea.

But before you start offering VPS reseller hosting, it’s important to understand what it actually is. Knowing the benefits for your audience, along with here it might not be the best option, will allow you to offer better service.

If you’re wondering what VPS reseller hosting is, and how it works, you’ve come to the right place. We’ll discuss both of these today.

What Does VPS Reseller Hosting Actually Consist Of?

VPS reseller hosting involves you buying this form of hosting from a web hosting client and then providing the service to your own. This kind of plan is typically for more advanced websites and businesses, and many of your clients will likely want to upgrade to this at some point.

When someone picks a VPS, they’ll have their own server. This is different from shared hosting, which – as the name suggests – typically involves them sharing space with other users. The amount of space they get varies, and while fine in the beginning, it can lead to scalability issues later.

VPS reseller hosts will often let you brand the service to sell it to your audience. Moreover, you’ll still get customer support and technical assistance. As a result, you aren’t completely on your own – and you should be able to offer a better service than would otherwise be the case.

How Does VPS Reseller Hosting Differ From Shared Hosting?

The main difference is how storage space is allocated. With VPS hosting, the client gets a full server for themselves. As a result, they don’t have to worry about sharing the server with others. This is very important because it means they can scale their server space up and down.

Many people start with shared hosting as beginners. If your website doesn’t have much traffic, using a shared server is a good way to save money. It doesn’t matter too much if you have to share the server with others because you don’t need that many resources anyway.

On the other hand, VPS hosting becomes necessary as a client’s website grows. Without private servers they might experience downtime or performance issues. Because it’s more advanced, VPS hosting is more expensive than the shared option.

The Benefits of Offering VPS Reseller Hosting

Before fully offering VPS servers, it’s important to understand why these are so beneficial. In the sections below, you’ll discover all the top reasons you should sell VPS reseller hosting to your clients.

1. VPS Hosting Is Scalable

One of the biggest advantages of offering VPS reseller hosting is its scalability. As your clients grow, they can easily transition without needing to change their provider. Site migration is costly and time-consuming; people who are happy with your servers will likely want to upgrade.

Another advantage is that your clients will likely have more money as their website scales. So, they won’t mind paying the extra cash. Instead, they’ll view it as an investment in their own business. As a byproduct, you can improve customer lifetime value (CLV) and increase your revenue.

To ensure that the transition is as smooth as possible, it’s worth partnering with a hosting provider that can assist with upgrading more effectively. Verpex, for example, has round-the-clock customer support to assist when needed.

2. You Might Lower Your Churn Rate

One of the key parts of running a successful reseller hosting business is to continue offering value to your customers. If you keep meeting their needs, they’ll stick around for the long run. As a result, you will continue to make money.

Since many people create a website because they have big ambitions, they’ll eventually need something more robust. If you can’t offer what they’re looking for, your churn rate will increase. Finding new customers is always more time-consuming than retaining your current ones, so you should stop this from happening as much as you can.

By lowering your churn rate, you can focus on further improving your products and services for existing customers instead.

3. Beneficial For Multiple Client Types

Another cool benefit of VPS hosting is that it’s beneficial for multiple client types. It isn’t restricted to one industry; it’s useful for eCommerce, graphic design, SaaS, and everything else you could think of.

Because VPS hosting can help numerous types of clients, you’re in a better position to offer services to a broader range of customers. As a result, you can spread your risk better and also delve into new niches you may find interesting.

4. VPS Hosting Helps You Understand Client Problems Better

Shared hosting can help you learn more about your clients, but at the same time, it’s not very customizable. As a result, you might be leaving a lot of data on the table.

On the other hand, VPS hosting is fully customizable. Since you can change it to meet your clients’ needs, you will find it easier to learn more about what they want. Furthermore, you can use this data to further enhance your services in the future.

Because you’ll know more about what your customers want, you will significantly improve your products and services compared to what would otherwise have been the case.

5. VPS Hosting Could Improve Client Search Rankings

As a hosting reseller, part of your job is to provide the infrastructure that enables clients to grow based on their goals. Factors like website speed can significantly impact search engine rankings, and hosting is a huge part of this. You may have even had customers sign up for your services because they previously had issues with another hosting provider.

Since VPS hosting is more scalable and allows unrestricted server access, your clients’ websites will probably run faster. As a result, they’ll likely rank higher in search engines. This brings more potential customers, and for you, it also means that you could get better testimonials with which you can attract new clients.

The Drawbacks of Offering VPS Reseller Hosting

While you will find many advantages to VPS reseller hosting, you also need to keep the drawbacks in mind. Though there aren’t a huge amount of these, knowing them is still wise so you can deal with potential issues more effectively.

1. You Need More Technical Skills

VPS hosting is generally more hands-on and technical than shared hosting. You need to understand how to tweak multiple settings, along with knowing how to maximize the results you get for your clients. If you’re a total beginner to web hosting, you may find this quite challenging.

To ensure that clients get the most out of what you offer them, it’s important to make the right hires. Bring in people who know how to tweak different settings, and choose a hosting provider that gives you the right level of assistance when needed.

2. Some Clients Might Not be Able to Afford VPS Reseller Hosting

While VPS reseller hosting can potentially lead to more revenue, you may not be able to convince all of your clients to sign up. In some cases, they may not be able to afford VPS reseller hosting. You can try to convince them, but this won’t be possible for everyone.

Rather than worrying too much about who is and isn’t willing to pay, focus on those who do have the budget. For the others, you can offer shared hosting – but understand that they may go elsewhere. Competing on price isn’t a good idea, because if you begin undervaluing yourself, you’ll slowly start resenting your business.

3. You May Need to Hire Extra Customer Support

Because VPS hosting is highly technical, various potential problems can arise. If you aren’t careful, you’ll find it difficult to keep up with these requests. And if that happens, your customers will quickly become disgruntled.

You should allocate more of your budget to offering the best service possible, which includes hiring more customer support if needed. It’s also another reason why you need to make sure you partner with the right hosting provider.

To summarize, here’s a quick list of the pros and cons associated with offering VPS reseller hosting…

Which Customers Should You Sell VPS Reseller Hosting To?

VPS reseller hosting is an excellent option for any of your clients who are looking to scale up and are close to meeting these criteria. If you notice some websites near the maximum of their shared hosting capabilities, offering them the opportunity to upgrade is a good idea.

Similarly, it’s worth actively seeking clients who you know are going to upgrade in the long run. By doing this, you save yourself a lot of time from having to deal with some that aren’t interested.

Summary

VPS hosting is a necessity for many websites that want to scale up, and as a hosting reseller, it’s important for you to offer this service. Before doing so, however, you need to understand what’s involved and prepare accordingly. Now that you know about these, you can start implementing the initial frameworks.

Frequently Asked Questions