Do you want to set up your own web hosting business? Pick the reseller hosting services that allow you to take web hosting resources at least from the parent web host and resell them to others. Many enterprises and individuals use this web hosting service package to initiate their web hosting operations activity.

You can evaluate the operational cost and use the cheapest reseller web hosting plan to gain more profits. In this guide, we will discuss the advantages and its working mode. Read on!

What is Reseller Hosting?

Let’s take a look at a typical wholesale and retail business arrangement. Resellers purchase web hosting services in “bulk” from UK web hosting companies acting as wholesalers. Reselling these services involves rebranding and repackaging them into smaller units that can be sold to customers.

Customer arrangements are then made with the reseller, not the web host manager from whom the reseller originally acquired services. Developers and design agencies offer their clients all-in-one packages with this hosting arrangement. For some companies, reselling web hosting is their entire business model.

How Reseller Hosting Works

Partnering with a Parent Hosting Provider

• As a reseller, you collaborate with a hosting provider that offers reseller hosting plans. These plans typically include bulk server space, bandwidth, and resources at discounted rates.
• Providers manage the backend infrastructure, including server maintenance, security, and performance.

Allocating Resources

• The reseller purchases a specific amount of server resources (e.g., storage, bandwidth, and CPU) and divides these resources into smaller hosting packages for individual customers.
• You, as the reseller, have control over how resources are allocated to each customer based on their needs.

Branding and Customization

• Reseller hosting allows you to operate under your own brand. Most providers offer white-label services, so the parent company’s branding is not visible to your customers.
• You can customize the hosting plans, pricing, and customer experience to reflect your business identity.

Setting up Customer Accounts

• A user-friendly control panel like cPanel or WHM (Web Host Manager) is provided to resellers for managing customer accounts.
• You can create, modify, and manage hosting packages, ensuring each customer has tailored solutions.

Customer Support

While the parent hosting provider handles technical issues related to the server, the reseller is typically responsible for providing front-line customer support. Some providers also offer white-label technical support to assist your customers on your behalf.

Revenue Generation

The reseller charges customers for hosting services, usually at a markup from the cost paid to the parent hosting provider. The profit margin is the difference between the cost and the price charged to customers.

Advantages of Reseller Hosting Services

1.      Affordability

Launching a traditional web hosting business is not a cheap endavour. There are different infrastructural costs involved in setting up a web hosting infrastructure. For many, entry into the hosting business is prohibitively expensive due to the high cost of securing physical storage, purchasing expensive servers, and employing staff to market and manage their services.

Reselling hosting is an excellent way to avoid these upfront infrastructure costs when starting your own business. Most of them are handled by your hosting provider, so you can concentrate on growing your business and serving your customers.

2.      Manageability

Reseller web hosting is easier to manage than Virtual Private Servers and other multi-domain hosting plans. Each of them has unique accounts for their website hosting plans.

Resellers easily manage the accounts without asking for the login credentials every time there’s an issue. They just have to administer customers and allocate resources.

The hosting provider handles server management, updates, and troubleshooting, so you can focus on growing your business.

3.      Scalability

One of the greatest advantages of reseller web hosting programs is their scalability. As your web hosting business expands, you can effortlessly upgrade to accommodate growth. Start with a smaller, budget-friendly plan and seamlessly transition to a higher-tier package when your customers’ needs surpass your existing resources.

4.      Responsibility

Managing your hosting infrastructure requires taking full responsibility for its upkeep and security. However, as a reseller, you’re freed from these concerns. The web hosting provider takes care of maintaining and updating servers across the globe, ensuring that the hardware remains secure and up-to-date at all times.

Now that we’ve covered the key benefits of becoming a reseller hosting provider, let’s delve into what this business model truly entails.

5.      White-Label Services:

The parent hosting provider remains invisible, allowing you to operate under your brand name and build credibility in the market.

You have complete control over the hosting packages, pricing, and additional features, enabling you to tailor services to your customers’ needs.

6.      Add-On Services for Upselling:

Upselling additional services, such as domain registration, SSL certificates, and website design, can further increase revenue. Reseller hosting opens opportunities for upselling complementary services, such as

• Domain Registration
• SSL Certificates
• Website Maintenance
• Email Hosting

7.      No Need for Extensive Technical Knowledge

Reseller hosting simplifies the technical aspects of hosting. The parent provider handles server maintenance, backups, and upgrades, allowing you to focus on customer acquisition and support.

How does it work?

A major goal of reseller hosting is to earn profits through packages. It may sound very simple but the challenges are plenty. Here is the right workflow to get the right reseller hosting plan.

1.      Choose Your Plan

First, choose the reseller web hosting plan that meets your IT requirements. Some web hosting companies offer basic reseller hosting plans that are only customized for agencies. Hence, MilesWeb has different plans where individuals and enterprises are comfortable signing up for their plans.

2.      Customize Your Hosting Package

After choosing the right reseller web hosting plan, it is the right time to customize the packages according to your customers. This structure will determine how the pricing and plans structure will appeal to the target market to make it profitable to you.  Whether your target is eCommerce websites or small businesses that want an online presence beyond social media, the web hosting plans should be customized to specific needs.

3.      Create a Storefront

Finally, get ready with your storefront. It handles the customer shopping activity and account sign-up. Many web hosting providers give you a simple blank storefront you can rebrand as your own. Some reseller hosting programs go a step further by offering additional services, such as web design or custom web development. With this knowledge of how reseller hosting works, you can confidently start marketing and selling hosting services under your brand name and set your pricing.

Things to Consider Before Choosing Reseller Hosting

Choosing the right reseller hosting plan is critical for ensuring the success of your business. Several factors need to be evaluated to ensure that your investment meets both your and your customers’ needs. Here’s a detailed breakdown of the essential considerations:

• Reliability and Uptime:

The parent hosting provider’s infrastructure must be robust, offering at least a 99.9% uptime guarantee to ensure your clients’ websites remain online. Frequent downtimes can damage your reputation.

• Performance:

Look for providers that use high-performance servers equipped with the latest technology, such as NVMe SSDs, multicore CPUs, and ample RAM. Faster servers ensure quicker website load times for your customers.

• Industry Reputation:

Research the provider’s standing in the hosting industry by reading reviews, checking ratings, and exploring forums where users discuss their experiences.

• Security Measures:

Ensure the provider implements strong security protocols, including firewalls, DDoS protection, SSL certificate support, and regular updates to protect against cyber threats.

• 24/7 Technical Support:

A responsive support team is essential, especially when technical issues arise that you can’t resolve yourself. Ensure the provider offers round-the-clock assistance via multiple channels like live chat, email, and phone.

• Custom Branding:

The hosting provider should allow you to sell hosting services under your brand name with no visible indication of the parent company.

• Customized Control Panels:

Tools like cPanel and WHM should be customizable with your branding, logos, and colors to reinforce your business identity.

• Billing Software Integration:

White-label billing platforms, such as WHMCS, simplify invoicing and customer account management, providing a seamless experience for your clients.

• Competitive Pricing:

Compare reseller hosting plans across multiple providers to find competitive pricing that offers sufficient profit margins. Ensure that the base cost allows you to price your packages attractively while still making a profit.

• Automated Backups:

Regular backups are critical for safeguarding your clients’ data. Verify whether the hosting provider offers automated backup solutions and how easy it is to restore data.

• DDoS Protection and Firewall:

Hosting providers must include security features to protect servers against malicious attacks, ensuring uptime and customer satisfaction.

• Cancellation Policies:

Many providers offer free trials or money-back guarantees. Use these options to evaluate the performance, features, and support quality before committing long-term. Check the terms of cancellation to avoid potential disputes or losses if the service doesn’t meet your expectations.

By thoroughly analyzing these factors, you can choose a reseller hosting plan that aligns with your business goals, offers competitive advantages, and ensures long-term profitability.

Summing Up

Reseller hosting is a good bet when it comes to creating your brand in this industry. All storage space and IT configurations are provided by the parent web host. MilesWeb is a credible reseller web hosting service provider offering 100% white-labeled reseller hosting services. In their plans, resellers get cPanel and WHMCS with efficient storage space and unmetered bandwidth.

Hence, there are no performance or latency issues. Also, their infrastructure supports the hosting of unlimited domains, and many cPanel accounts hassle-free.