Reseller hosting can still be profitable in 2023. How much you make depends on the type of plan, the hosting provider, and your rates.
To start a reseller hosting business, you must sign up for a reliable reseller program and upsell to existing or new customers.
Before you get into hosting, however, you need to consider the cost of getting a server up and running. This cost accounts for one of the major differences between reseller hosting and traditional hosting.
Resellers don’t have to worry about setting up or managing a server. Reseller hosting is a great source of additional revenue for web designers, web developers, and other individuals looking to upsell.
Best hosting strategies
Reseller hosting might sound easy, but there’s a lot of effort to put in. The best reseller hosting providers implement the following strategies, among others:
- Growing your income by knowing how to find clients
- Choosing a reliable web hosting provider
- Guaranteeing the quality of hosting business services
- Choosing a plan with sufficient resources to distribute among clients
- Making valuable content available via your blog or social media channels to get more traffic
- Setting up a user-friendly business website
Reseller hosting businesses can set themselves up for success when they incorporate all of these into their business plan. The secret lies in being able to convince as many users as possible to sign up for your rebranded hosting services. If you already have clients as a web designer or IT professional, it should be less challenging than if you were starting an online business from scratch.
Benefits of reseller hosting over traditional hosting
Businesses that have a solid budget and can deal with hosting business complexities full-time can succeed with traditional hosting. Correspondingly, they can make more money than by reselling it. Reseller hosting is great for people who want to make some extra money.
Figuring out what route to take is essential when starting a web hosting business. Signing up for a reselling program is similar to traditional hosting in that you offer the same service. The differences are mainly in setting up the business.
Traditional hosting businesses invest in servers in different locations. These servers host websites in the area and run web apps. The hosting provider must maintain and configure the server and provide technical support to end users. They must cover the costs of owning and maintaining a server, hiring employees, and other technical hosting tasks and activities.
Reseller hosting is booming in 2023 because web hosting services are in higher demand than ever. To get started as a reseller, all you need to do is buy web hosting services from a parent company and then resell them at a profit.
Here are the steps to take once you’ve found a company to buy hosting from:
- Decide what niche to focus on
- Choose a reseller plan from a reliable provider
- Create a website
- Upsell plans to customers at marked-up rates
How much can you make from reselling hosting?
The amount you can make depends on the type of plan you choose, your parent hosting company, and how much effort you put into finding customers. Your income will grow as your customers increase. In addition, your markup and expenses also play a role.
How to get people to buy from you?
Essentially, you need to convince customers to buy from you. This starts with an appealing and intuitive website, but it doesn’t end there. You need to provide high-quality services to stand apart from the rest, which may include customer support around the clock. In addition, make sure your customers have sufficient resources to run their websites.
If your prices are higher than those of your competitors, you need to offer better services. People are still willing to pay more for reliable support and quality services. If your pricing reflects quality, you’ll be able to get away with charging more than other reseller hosting providers in the area.
As for expenses, you can reckon with the following: a domain name for your site, site content, the hosting plan you buy from the parent company, your theme, SEO costs, referral program costs, and marketing ads. Domain names range from $5 to $50 a year depending on how unique the top-level domain is, among other factors.
Expect to pay the following on average:
- Reseller hosting plan: $18 to $60 a month
- SEO cost: $100 to $500 a month
- Referral program: $5 per referral
- Premium theme: $50 on average.
- Marketing ads: $5 per day