What Is White Label Hosting?

··Reseller Hosting

What Is White Label Hosting?

The web hosting industry has become a massive place where many people have found their calling. It is home to over 126 million web hosting providers and has been estimated to have a value of over $83 billion in 2021.

A part of that industry is white label hosting. It's closely associated with reseller hosting. Reseller hosting is when third parties buy a plan from a parent web hosting provider, and that plan enables them to sell the resources they get as their own. When combined with white label hosting, or what is known as white label reseller hosting, it becomes a cost-effective way for small businesses to enter the web hosting market and start their own web hosting business.

So, in this article, we will explore what you need to do and what you need to know in order to resell hosting and get your business off the ground.

What Is White Label Reseller Hosting?


White label reseller hosting is a business model that includes re-selling the resources of a larger hosting provider as your own to your customers under your own brand. This includes finding a parent provider to buy the resources from and selling their servers, bandwidth, RAM, etc., without taking care of the technical requirements and server management and maintenance by yourself.

Basically, it allows you to have your own web hosting business without all the challenging technical parts. And since it's become a popular choice among users, many providers have their own reseller plans. One such provider is Verpex, and you can check out our reseller plans if you're interested.

How Does White Label Work?


How Does White Label Work

If you want to participate in the white label web hosting business and have a reseller hosting website website, you first need to find a parent provider and purchase a reseller plan in order to obtain web hosting services. After you've decided on a parent provider, you can start your hosting business.

The goal of white label web hosting is to charge your customers a higher price compared to the one you paid to your parent provider for purchasing the reseller plan and obtaining the necessary resources. This saves you all the time and money you'd otherwise have to spend on setting up servers and other resources yourself. So, how does reseller hosting work? Well, it essentially allows you to skip this and start your business right away because, essentially, you're re-selling finished products.

Who Should Opt for White Label Reseller Hosting?


Developers and designers

White label reseller hosting can be an excellent addition to the services of web developers and web designers who want to host their customers' sites on separate control panel accounts

Non tech-savvy individuals

White label reseller hosting can become a business or source of income for anyone who wants to sell hosting services without caring about the technical requirements. It makes the web hosting industry more available to individuals that want to be a part of it but lack the technical knowledge, money, or time to set up and manage servers and other resources

Existing web hosting providers

Having white label hosting or reseller hosting as part of your overall hosting business is a great way to expand your business and offer a broader range of services

Businesses that want to expand

Any business that has an online presence can use white label reseller hosting as a means of offering more services to their customers, thus providing them with a solution to more issues all in one place

White Label Hosting Key Features


The complete list of services you will get depends on the parent provider you choose. But let's go over some of the features that most white label web hosting providers offer in their reseller hosting plans:

Billing Integration
Billing Integration
Resources Scalability
Resources Scalability
Private Name Servers
Private Name Servers
Client's Accounts Management via a Control Panel
Client's Accounts Management via a Control Panel
Email Add-ons and Domain Registration
Email Add-ons and Domain Registration
Website Migrations
Website Migrations
SSL Certificates
SSL Certificates
Billing Integration
Billing Integration
Resources Scalability
Resources Scalability
Private Name Servers
Private Name Servers
Client's Accounts Management via a Control Panel
Client's Accounts Management via a Control Panel
Email Add-ons and Domain Registration
Email Add-ons and Domain Registration
Website Migrations
Website Migrations
SSL Certificates
SSL Certificates

Billing integration

WHM billing software is included in most reseller plans, allowing you to easily bill your clients and manage their payment plans. This relieves you of the burden of ensuring that your clients pay you on time.

Resources scalability

Reseller hosting enables you to scale up your hosting resources as soon as the need arises as you grow your customer base.

Private name server

Allow you to separate your brand from the brand of your parent provider and are vital for rebranding the services you sell as your own.

Clients' accounts management via a control panel

It's essential to have a user-friendly control panel that is easy to use so that website management, making backend changes, and granting access to customers are more straightforward.

Email add-ons and domain registration

Many providers make re-selling domain names and email add-ons available in their reseller plans because this makes them more appealing to potential white label reseller hosting users. Also, many offer domain registration and transfer for free.

Website migrations

Most providers offer free website migrations in their reseller hosting plans so that users can migrate their existing websites to the provider

SSL certificates

Free SSL certificates are included in most reseller hosting plans, and the parent providers usually take care of the installation and renewal for you and all of your customers

What Are White Label Reseller Hosting Main Benefits?


Pros

Source of income
Relatively small start-up investment
Opportunity to grow and scale your own brand
Extra services for your existing clients
Building a recurrent revenue stream
Support from your parent reseller hosting provider
No need to maintain your own physical servers
Huge and constantly growing demand for web hosting services
Flexibility: your brand - your rules
Lower space requirements
Better customer retention
Cons

It's not a passive income
Numerous competitors
It's time-consuming
Have to provide customer support to your end clients

Pros of White Label Reseller Hosting

  • Source of income
    Offering web hosting services to customers and charging them a monthly fee or subscription makes for a stable source of revenue that can cover the investments and costs you've made and will make in the business. Also, you can start earning a hefty amount of profits after you've amassed a significant client base.
  • Relatively small start-up investment
    White label reseller hosting enables you to cut your costs because you don't need to invest a large amount of money in starting your business as you get your resources from another provider. You will need to invest in a reseller plan, a website, etc., but those costs are pretty minor compared to a having full-blown web hosting company with your own servers.
  • Opportunity to grow and scale your own brand
    By selling a wide range of services to different groups of customers, you grow the reach of your brand by appealing to a broader pool of customers .
  • Extra services for your existing clients
    By offering solutions to more problems all in one place, you make sure that the customers' needs are satisfied and that they can rely on for more than what they've signed up for. In turn, you can charge premium prices for different bundles of services, which will increase your income.
  • Building a recurrent revenue stream
    The more you grow and invest in your web hosting business, the more stable the business becomes with customers that continuously use your services. This ensures that you have a recurrent revenue stream you can rely on.
  • Support from your parent reseller hosting provider
    With white label hosting, the parent provider assists you in resolving server issues, addressing customer concerns and difficulties, and providing you with business insights and knowledge. All of these characteristics help you to expand your business while keeping your hosting services running properly.
  • No need to maintain your own physical servers
    This is in the hands of the parent provider, which allows you to focus on your business and customers. So even if you don't have the technical knowledge to maintain and manage servers, you can still have your own web hosting business.
  • Huge and constantly growing demand for web hosting services
    The web hosting industry is estimated to have a $183 billion value in 2027. Also, the eCommerce industry is becoming more and more prominent, estimated to be worth over $7 trillion by 2025. So, web hosting services will only grow in demand as more and more websites will be created by individuals looking to enter the eCommerce market.
  • Flexibility: Your brand - Your rules
    With white label reseller hosting, you are in charge of what you do, how you want to present yourself, who you want as a customer, etc. You don't have to follow any guidelines or rules of other providers or other people in general, which allows you to create the brand you want.
  • Lower space requirements
    With white label reseller hosting, you use the servers of your parent provider. This means that you don't need any servers of your own, which enables you to run your business from your home or save on rent by renting a smaller office space.
  • Better customer retention
    By offering customers solutions to more problems all in one place, you ensure that they pick you as a business partner in the future and for other services they might need. This produces loyal customers that will make you long-term profits. And seeing as 65% of a company's business comes from existing customers, it significantly helps your business grow and expand.

Cons of White Label Reseller Hosting

  • It's not a passive income
    You do need to invest time in it, especially at the very beginning.
  • Numerous competitors
    Great margins, small investments, and not too much technical knowledge required to have a web hosting business contribute to bringing many players to the market, which makes the whole niche highly competitive.
  • It's time-consuming
    You need to make sure not to abandon your primary online business or switch to your web hosting business full-time if you don't have time for both. Having a successful web hosting business is time-consuming, just like any other business.
  • Have to provide customer support to your end clients
    Your reseller hosting provider takes care of your own issues, but you have to assist your own customers.

Is White Label the Same as Private Label?


Is White Label the Same as Private Label

These two concepts have their similarities but are essentially two different things.

A white label is when a manufacturer creates a generic white label product for numerous resellers. Each retailer can label the product as their own, but it's still the same product being sold by all these retailers.

However, with private labeling, the product is designed for a single reseller's exclusive sale. The private label retailer can customize the product to match their specific selling needs, strategies, and brand. Unlike generic white label products, the modified private label product is distinctive to that particular retailer. It can even be customized with the retailer's logo or branding colors, differentiating it from the products that competitors sell.

How to Start a White Label Web Hosting Business?


There are five steps that are essential for starting a white label web hosting business:

  • Finding a parent provider - Research the market and consider things like prices, customer support, reviews, security features, etc.

  • Picking a reseller plan – You need to figure out what you need and choose your plan accordingly.

  • Having a management panel – Make sure to get a plan that offers an intuitive management panel with a dashboard that is easy to navigate, like the WHMCS.

  • Building your client base – You can use many different tactics for this, like social media marketing, placing ads on Google and Facebook, etc.

  • Preparing for growth – Reseller plans allow you to scale up your resources to accommodate your growth needs on time.

The Bottom Line


White label reseller hosting is an excellent way to enter the web hosting market and start your own web hosting business without the need for advanced technical knowledge and spending a lot of money on resources.

Also, it is a great way to have a profitable business, and it allows you to create your own brand based on your preferences. Of course, it takes time and effort to build a successful web hosting business, but it's worth it in the long term because this industry and the need for web hosting continues to grow.

Frequently Asked Questions


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.

Is reseller hosting profitable?

Running your own reseller hosting company can be quite profitable if done right.

How do I become a hosting reseller?

To become a hosting reseller, all you need to do is select a host, choose a hosting package, create your own hosting packages, and get your hosting business online.

Which reseller hosting is the best?

Usually, the best reseller hosting is powered by a VPS plan. The reason for this is because as you start to scale up your business, you can easily move from one to another.

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