Reselling Web Hosting: A Business Opportunity for Web Designers and IT Professionals

May 11, 2017

Webhosting reselling is the act of utilizing the resources of a well-established webhosting provider and selling their hosting plans “camouflaged” under your own brand.

Many reputable hosting providers already offer plug-and-play reseller systems that allow you to private label their hosting products using your name.

For many web designers reselling hosting services is a smart and profitable business. They look like any other high tech webhosting company without having invested a cent in equipment, training of stuff, and other extremely complex and expensive infrastructure.

Is Host Reselling a lucrative business?

The short answer to this question is that it depends on your line of work. If you are already working in the fields of programming, graphic design, web copywriting, web design or internet marketing, you've likely had contact with a number of people that need hosting for their websites. They could be your potential customers.

The more potential clients you have, the bigger your chances of generating a profit by selling web hosting.

The 7 steps to starting a Reseller Hosting Business

With a variety of reseller hosting plans to choose from, taking the first steps is a breeze. Here is a quick outline of the procedure:

  1. Research hosting providers that offer reseller hosting
  2. Compare the best reseller hosting plans on offer
  3. Make a reasonable estimate of how many customers you should be able to recruit and make a business plan.
  4. Determine the price of your hosting packages and whether reselling will be used as a value-added service to your existing services
  5. Buy a reseller hosting plan that aligns with your business plan
  6. Create your hosting plans, and add them in your own website, following the instructions provided by your parent hosting company
  7. Start marketing your hosting business in order to attract new customers


Making a Business Plan

I have prepared here a simple diagram showing you how you can make a business plan for a Reseller Hosting Business


Reseller Hosting Business Plan


How to become successful as a Webhost Reseller

If you plan on becoming a reputable web host, there are some things you should seriously consider. Having being in the industry for many years, I've compiled a list of some of the most important qualities of a good reseller:

1. Professional Branding

First impressions are always important, so make sure you choose an appropriate business name. On a related note, your website should also be as clean and intuitive as possible. Many hosting companies can provide you with decent website templates, and then it's up to you to customize it to your liking.

2. Reliability

Timely customer support is an integral part of every web hosting package. Most web designers, however, don't have the necessary infrastructure to provide this kind of service. The good news is you can simply provide your customers with a phone number of your parent hosting company and their support team will take care of your customer calls!

3. High Uptime

This is one of the biggest reasons why partnering up with a reputable hosting provider is of paramount importance. If your parent company can't provide reasonable uptime and performance, you will soon have a lot of angry clients. The best way to present your brand in a positive light is to find a hosting company able to provide an uptime guarantee of 99% or higher.

4. Dependability

As a general rule, don't mess around with the features you get from your parent company. If your provider is able to provide unlimited storage or a certain amount of domain names, follow their example and sell these features to your own clients.

My advice

This probably bears repeating, so here goes: try not to bite off more than you can chew. If you're just starting out and you don't have an extensive client base, you probably don't need a bunch of complicated features and services.

Also, you might be tempted to invest all your money into a slick-looking website, but that alone won't bring you additional customers. Instead of putting all your money in an expensive website start with a simple looking website and focus your resources on marketing your webhosting plans and creating more business.

Think long term, be persistent and be patient. You'll become a successful reseller in due time!

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Alex Papaconstantinou

In 1999, as a young college graduate, I got my first job at Nortel Networks making the World Wide Web. In 2004, at Seagate Technologies I worked to satisfy the demand for faster and more reliable hard drives.

Since 2008, I have been the founder of several other online ventures. Recently, I graduated from the university of Hard Knocks with a master of Arts degree in Web Business. Currently, I am doing my PhD (Positive, Hungry and Determined) in Online Business. I have no plans to complete this.

I created Webhostingology to help other internet entrepreneurs get the right webhosting solution and save money.