What Is Reseller Hosting? Features, Income & Comparisons

Reseller hosting is a type of web hosting service where a company or individual purchases a large hosting plan from a web hosting provider and then resells portions of that plan to other customers as their own hosting plans.

It's like buying a big toy box and then sharing some of the toys with your friends so they can play too. The person who rents out the space is called a reseller, and they make money by charging their friends for using the space. It allows individuals or businesses to start their own web hosting company without the need to invest in expensive infrastructure or hardware.

Technical Aspects of Reseller Hosting

Now, let's talk about the technical aspects of reseller hosting. Here are a few key things to understand:

• 1. Server Resources: A reseller hosting provider will give the reseller access to a certain amount of server resources, such as disk space, bandwidth, and memory. The reseller can then divide up these resources and allocate them to their customers as needed.

• 2. Control Panel: The reseller will typically have access to a control panel, which is a web-based interface that allows them to manage their hosting accounts. From here, they can create new accounts, manage existing ones, and perform various other tasks.

• 3. White Labeling: Many reseller hosting providers offer "white labeling" options, which means that the reseller can brand the hosting service as their own. This can include custom logos, website designs, and even customized control panels.

• 4. Support: Reseller hosting providers will often offer support to both the reseller and their customers. This can include things like 24/7 technical support, assistance with website migrations, and troubleshooting help.

Overall, reseller hosting is a way for people to start their own web hosting business without having to invest in expensive server equipment and infrastructure. Instead, they can leverage the resources of an established hosting company and focus on building their customer base and providing top-notch support.

How Does Reseller Hosting Work?

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.
  

Pros And Cons of Reseller Hosting

Just like with every purchase or career choice, you’ll need to weigh up the pros and cons before making a concrete decision on your reseller hosting plan.

Whether or not this is the right opportunity for you depends on how well you can adapt to the responsibilities that come with it, and if you’re equipped to deal with the demanding nature of managing websites for various clients. Sure, you’ll have a lot of the hard work done for you, but you’ll still need to take on a lot of commitments yourself to become a successful web hosting reseller.

Advantages of Reseller Hosting

Considering the scale of what reseller hosting offers, the plans are actually pretty cheap and affordable

Create your own environment to suit the needs of your customers and their hosting plans

Establish your own brand and identity without having to tell your customers you’re leaning on the services of a reseller hosting provider

Disadvantages of Reseller Hosting

Changing your reseller provider will have a knock on effect on your customers and every website you host for them

The success of your business and how well you cater for your clients will always hinge on the reseller provider you’re working with

Advantages of Cloud-Based Reseller Web Hosting

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.

5 Steps to Start Your Reseller Hosting Business

There’s a lot you’ll need to think about aside from paying for the server space, and the sooner you begin the better. There’s no point getting the server without having some sort of strategy in place, as you’ll be wasting precious time in garnering leads and appealing to prospective clients, for example.

>Starting a web hosting business can be a lucrative venture if you follow the right steps:

1. Develop a business plan:
Outline your target market, services, pricing structures, resources needed, and research your competition to identify your niche.

2. Register your business and obtain licenses:
Decide on your company's structure, register the business, and apply for necessary licenses and permits.

3. Secure suppliers and infrastructure:
Find reliable suppliers for servers, hardware, and software; set up the infrastructure to support your hosting services.

4. Create a professional reseller hosting website:
Design a user-friendly website showcasing your services, competitive advantages, and providing clear pricing and package details.

5. Market your business:
Invest in search engine optimization (SEO), social media, and other marketing strategies to promote your web hosting business and attract clients.

To learn more details and gain insider tips about starting a web hosting business, be sure to read our comprehensive article, "How to Start a Web Hosting Business?", available on our blog.

4 Components of a Reseller Plan

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.

How to Spot a Reliable Hosting Platform

Reputation

Research on social media, review sites, and forums to ensure your partner's solid reputation.

Security

Select platforms offering robust security tools, including free SSL certificates, daily data backups, and regular scans.

Speed tests

Choose providers with public speed tests and multiple server locations to optimize site load times.

Uptime guarantee

Seek partners with 99.99% uptime guarantee and compensation for any breaches.

24/7 support

Ensure the hosting partner provides round-the-clock live chat and multiple contact options.

Reseller Hosting Market Competition

In the reseller hosting business, it's essential to remain competitive and ahead of your peers. Here are some key points to keep in mind:

Understanding the Industry and Client Demands: Firstly, you must have a thorough understanding of the industry and the needs of your clients. Recognizing their demands and trending patterns is crucial for setting your company apart and staying a step ahead of the competition.

Investing in Branding and Marketing: This is another vital step. The awareness of your hosting packages can be raised, and new consumers can be attracted through a consistent investment of time and effort in branding and marketing.

Monitoring Competitor Pricing: Keep an eye on your competitors' pricing. It's important to adjust your rates in accordance with theirs to stay competitive.

Limited Server Control: Remember, reseller hosting typically provides limited server control. This means you won't have complete control over the hosting of your clients' websites. Be mindful of this as you strategize and plan your services.

Providing a Dependable and Secure Environment: One of your key responsibilities is to ensure a reliable and secure hosting environment for your customers' satisfaction.

Who Do We recommend A Reseller Hosting Business To?

An excellent approach to establish a hosting company and earn extra money is through reseller hosting. It is perfect for anyone who wants to start their own business and profit from the expanding web hosting market at the moment. We suggest a reseller hosting company for the following reasons:

• Those who already offer web design or development services. Your reseller hosting packages will already have an audience and potential clients if you currently provide services like web design or web development.

• Those seeking an additional source of income. Those wishing to earn extra money in their life may consider reseller hosting. Depending on the size and scope of your firm, it might be a fantastic source of income with a modest initial cost.

• Those who want to establish their own brand. You'll be able to create your own brand and identity with reseller hosting. Your customers won't be aware that you are renting space from a different hosting company.

• Those in search of scalability. Users of reseller hosting may choose and manage how much website space and bandwidth they need, as opposed to being restricted to the predetermined number of resources that come with a standard hosting package.

Understanding the Potential Income from Web Hosting

The potential income you can make from a web hosting business depends on your business plan.

For example, if you charge $20 per month for a shared hosting package and pay $59.99 a month to host 100 websites, you would only need two customers to cover basic costs. As your business grows and you attract more customers, your revenue will increase, allowing you to reinvest in advertising and customer service improvements.

Scaling up sensibly is crucial to making money in this business, much like owning a rental property. Maintaining your customers' websites and resolving complaints are also important. Ultimately, as a web hosting business owner, you have control over your profit margins and can determine fair pricing.

If you're interested in learning more about the potential income you can make from a web hosting business, check out our dedicated page on web hosting business income.

Reseller hosting security considerations

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.

How to Secure Your Reseller Web Hosting Account

The safety of your data and the prevention of malicious attacks both depend on the level of security you apply to your reseller web hosting account. Follow these guidelines to protect your reseller hosting account:

1. Update your software frequently, and install all security patches.

By doing this, you can shield your system from malicious attacks.

2. For your hosting accounts, use secure and distinctive passwords.

To keep your account secure, make sure to regularly change your passwords.

3. Use two-factor authentication to add an extra layer of security to your account.

In order to access your account, you will need two pieces of information, like a password and a code sent to your mobile device.

4. Avoid using a public WiFi connection to access your account.

Public Wi-Fi is not secure and is easily exploitable by malicious people.

5. Be sure to regularly backup your data.

This will guarantee that, in the event of a catastrophe or malicious attack, you have a copy of your data.

Understanding SEO for Reseller Web Hosting Sites

Reseller web hosting sites can benefit greatly from understanding search engine optimization (SEO). Through optimizing the content on their sites and utilizing the right keywords, reseller web hosting sites can:

• Boost page rankings in search results and increase traffic to certain pages

• Improve your web presence and reach the relevant audience

• Increase profitability and brand recognition

What Features Are Included in Reseller Hosting?

Aside from total support and management from the Verpex tech team, you’ll get an abundance of state-of-the art solutions and essential features.

Between the market-leading WHM control panel and Softaculous Auto-Installers, we’ve included features that ensure the smooth running and swift setup of your reseller hosting plan.

That means twice-daily backups, unlimited migrations, choice of locations, and much more.

Plus, all our servers are white labeled, meaning that you have the ability to re-sell hosting services as if they were your own company.

Troubleshooting for Web Hosting Resellers

There will be occasions when your server has issues, regardless of how competent your web host is. Understanding the fundamentals of how your server functions and what you can do to resolve any problems that may develop will help you be ready for these situations.

To help you learn how their system works, your web host should offer in-depth manuals and tutorials, but you might also wish to spend money on a few decent books. You can maintain a server's seamless operation by becoming familiar with the fundamentals of server management, such as creating hosting accounts, managing domain names, and maintaining databases.

To keep up with the most recent information, you should also consider other resources including blogs, forums, and video tutorials.

Investing in automated backup systems and monitoring technologies can also give you peace of mind and assist you in spotting and resolving issues as they arise. With the appropriate information and tools, you can make sure your server is operating efficiently and your clients are happy.

Keeping in mind that customer service is crucial when troubleshooting is also critical. Make sure to swiftly reply to consumer inquiries and offer beneficial guidance.

7 Legal and Regulatory Requirements for Reseller Hosting

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.

Shared Hosting vs Reseller Hosting

Shared hosting is ideal for beginners with few websites, offering a single cPanel account with the resources per tier.

Reseller hosting provides a platform for housing third-party websites and is favored by entrepreneurs starting their own web hosting service or web developers looking to expand their brand services.

Reseller Hosting vs. Affiliate Programs

Reseller Hosting With Verpex

Reseller hosting provides an opportunity unlike any other form of hosting you’ll find.

By leasing fully-managed server space, from a provider like Verpex that runs its own network, you’ll be able to create your own hosting company and begin hosting third-party websites under your own brand. This is the perfect choice for anyone that wants to break out in the industry but doesn’t have the infrastructure to be able to support the needs of prospective customers.

With Verpex, you’ll be able to host as many as 100 clients and unlimited domains off one membership, with the opportunity to scale up should you need to.

Summary

Reseller hosting provides endless opportunities to create a successful business and make your own mark on the industry.

While you’re not operating your own network of servers, reselling them from a trustworthy source like Verpex means you don’t have to focus on the complexities of maintaining the infrastructure and can apply your efforts to nurturing your new hosting business. We look after your server as well as the third parties you’re hosting on there to guarantee uptime and remove any potential disruptions.

Frequently Asked Questions

Do I need to be a hosting expert?

You don’t need to be an ‘expert’, but some knowledge will definitely help.

There’s a bunch of things you can be familiar with that’ll make the process smoother, not just to make your new job easier when managing multiple sites via your cPanel, but also to do right by your customers; especially if you’re hoping that they’ll retain your services.

Put simply, without some appropriate knowledge, you won’t be able to deliver the comprehensive service you’re promising, nor will you be able to effectively run things on your end.

Sure, the company you host through will handle all essential server maintenance, day-to-day troubleshooting, security, and just about everything else, but knowledge in domain registration, email, typical administration, and even a slight understanding of HTML will go a long way in providing solid customer service to your reseller hosting clients.

How many sites can I host on my server?

The amount of sites you can host on your reseller server is basically limitless. The only thing holding you back is the amount of cPanel accounts you can host, and this depends entirely on the hosting provider that you choose. With Verpex, you have the choice of three plans: Start-Up, Pro, and Ultimate. As the names suggest, each plan is designed to meet the scaling requirements of reseller hosters, with options for new starters through to experienced users with large demands. Respectively, the plans have 15, 50, and 100 cPanel accounts included.

How does Verpex help with my reseller hosting?

Our job doesn’t end once we’ve sold you the reseller space. In fact, we’re with you for the whole time you’re hosting with us, supporting both your needs and that of the customers you pick up along the way, whether you max out your cPanel account limit or not.

The Verpex team is at your disposal, acting as your essential support team 24/7. That means anything pertaining to hardware, the network, updates and configuration, security, and connectivity, is all handled by us.

Both you and your customers can focus on running your businesses while we take care of all maintenance and troubleshooting with expert technical support.

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.

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

How much should I charge my customers?

Well, as the old rhetorical goes: how long is a piece of string? This decision is entirely yours to make as we’re not involved in the relationships with your customers; we just resell our systems to you. Besides providing management and support, we don’t interfere any further.

If you’re unsure, you’ll no doubt benefit from doing some market research, assessing what your competition is charging, as well as what your operational costs are.

Finding the right price might not come to you instantly, but you should be able to ascertain a minimum price in order to make your new reseller hosting venture profitable.

How much money do I need to begin reselling server space?

This really depends on the scale of your operation. For example, if you intend to hire employees to manage your website, as well as the backend of your reseller server, then the costs can quickly rack up. But as far as beginning your journey into reseller hosting, the only cost you need to think about is the monthly charge of your chosen plan.

The Start-Up plan costs $14.99 per month, Pro is $24.99 per month, and the Unlimited reseller plan is available for $39.99 per month. If you are just getting started, you can start on the smallest package and then upgrade as your needs and client base grows, which is a great way to keep costs down. Also, keep an eye out on our website as we frequently run promotions that can cut your costs significantly.

How long does reseller hosting setup take?

Once you've ordered the desired reseller hosting plan, your package is created instantly and you'll receive a welcome email shortly after with your credentials to get started.

Is it possible to create separate cPanel accounts for my clients?

Yes, you can create separate cPanel accounts for your clients

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 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.

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.

What restrictions are there to reselling?

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

Are all reseller hosting plans cloud-based?

Our servers are in the cloud. So yes, all our reseller hosting plans are cloud-based

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