Home » Web Hosting » Guide to Reseller Hosting: What It Is & How It Works

Guide to Reseller Hosting: What It Is & How It Works

 

Disclosure: Tech Daily is reader-supported. If you click-through, make a purchase or sign up for a service through our links, we may earn a commission or fee (at no cost to you). Learn more.

 

Reseller hosting describes a hosting model where the hosting company sells reseller hosting packages to individuals or companies, usually like web developers and web design agencies.

The reseller gets an account with the hosting company, allowing them to offer hosting services to their clients.

As a result, people in need of design services can also ask for hosting and site management from the same provider.

The reseller is in full control of allocating server resources to its client websites, acting as the intermediary between the site and the host without slowing performance.

It’s sort of like buying hosting in wholesale from a company and then retailing it to your own clients.

 

How Does Reseller Hosting Work?

Reseller hosting accounts and packages are available from various web hosting companies.

You apply for a reseller account, and the hosting company gives you all the tools you need to sell hosting solutions yourself.

Reseller hosting benefits the host as well as the developers reselling it.

It gives the host another marketing channel, where resellers do the marketing in exchange for a commission.

It also benefits the developers, giving them direct access to custom hosting solutions for their clients.

Keep in mind, that anyone can be a reseller, not only developers or web design agencies, so if you’re in a certain niche where you can promote/recommend web hosting services to your clients or users, becoming a reseller may be a way to add an additional income stream.

Reseller hosting allows the reseller to acquire different types of web hosting on behalf of their clients.

Developers get access to wholesale prices, and they have the option of taking a “white-label” product, enabling the developer to add their own branding.

Resellers sell the hosting at a markup and bank a profit from providing the service, just like the hosting provider.

Resellers also set independent terms and conditions with their clients, as long as they meet the hosting company’s general terms and conditions.

The best web hosts already have specific reseller packages set up with the software for easy installation and use.

For instance, the provider might offer you hosting with your customized cPanel already set up and ready to go.

All you need to do is create a new client account, allocate disk space and bandwidth, and the client site can be uploaded and launched.

 

3 Things to Look for in a Reliable Reseller

Are you on the hunt for a reseller hosting provider?

We recommend looking for the following characteristics of a top company.

1. Pricing

Pricing is the most important aspect when it comes to hosting.

There’s a big difference in the monthly subscription fee on a shared or dedicated hosting service.

There are also differences in pricing from hosting company to hosting company.

Many resellers make the mistake of signing up with the lowest-cost provider.

However, this strategy is often a mistake. It’s important to look for a balance between price and quality in your prospective hosting company’s offering.

A low hosting price looks good to your clients, but they’re expecting a world-class service.

If you’re saving them money on hosting but costing them money on lost traffic, they aren’t going to stay with you.

Ensure you assess the reseller agreement and the specifications of the hosting service before committing your clients to the host.

If they end up experiencing downtime and site issues, they’ll start blaming it on you, ruining your reputation, not the providers.

Some providers also try to nail you down into long-term contracts by offering you a low price if you pay upfront.

For instance, you could pay for a two or three-year subscription upfront and get two months free.

While that might sound like a good deal, it doesn’t help if the service is not up to par.

Many of the low-cost special deals put together by companies involve service offerings with underperforming products.

 

2. Technical Specifications

When searching for a hosting provider for your reseller account, make sure you understand the terms and conditions regarding the technical specs included with each hosting package.

If you have a client that needs hosting for a media-rich site featuring a lot of video and image content, you’re going to need to have the right bandwidth and disk space requirements to accommodate the site.

If you commit to a service-level agreement with a client, and the hosting company doesn’t offer all the specs you need, you’ll end up paying for them out of pocket to satisfy the client.

Understand what you are getting technically from the reseller hosting provider and ensure it aligns with what the type of service you plan to offer your own clients.

 

3. Technical Support

Your hosting provider needs to provide you with excellent after-sales support and service.

If you have a problem with one of your clients, you need a team that’s behind you for technical support.

You want to make sure the provider offers 365/7/24 support by phone so that you can immediately reach out to them if there is an issue with one of your clients.

 

Can I Make Money with Reseller Hosting?

If you’re a design team, applying for a reseller account with a good hosting company is a great way to create another income stream for your business.

You can white-label the cPanel, and customize it to your branding, creating another service offering for your clients.

Considering they’re getting a website created by you, it’s highly likely that they’ll also look to you to get the site set up and live, so offering reseller hosting is a natural extension to your business.

Reseller hosting commissions can add up, especially if you’re managing several clients.

Be sure to research the different options available to you and consider signing up for an account.

nv-author-image

Shawn Gant

Shawn is a passionate techie particularly interested in the fintech space. He loves to dig into the ever evolving number of apps and SaaS platforms available to Canadians. In his free time, catch him on the mountains shredding some powder.