- May 11, 2017
- by Brad Litwin
Building a self-sustaining online business is a dream for many people, but your ambition doesn’t need to end there. The question is, what type of activity can give you a recurring income while still leaving enough time to pursue other interests? The answer you’re looking for may be reseller hosting.
This type of hosting plan enables you to ‘rent’ server space from your provider and then turn around and sell it to your own customers. It’s a perfect solution for entrepreneurs, online marketers, and even digital agencies (since they can package hosting with their other services).
In this article, we’ll tell you all about reseller hosting, including what it is, how it works, and how to get started with this business model in two short steps. Let’s jump in!
An Introduction to Reseller Hosting
As we mentioned earlier, reseller hosting plans enable you to set up your own business using your provider’s servers. You pay them a flat monthly fee depending on the resources you’re renting, and you’re free to charge whatever you want to your clients in turn.
The question is, who can benefit from this business model?
There are plenty of legitimate use cases for reseller hosting. For example, if you’re a developer, you can consider hosting and maintaining your clients’ websites for a flat fee. This would make things easier for them, and you’d be able to build a long-term recurring income from it.
Virtually anyone who wants to make some extra money can test their luck with reseller hosting. You don’t need to be a hosting expert, as your provider will take care of most of the work for you. While it’s a good idea to do some research, you don’t need to be hands-on, as things like server maintenance, security, and updates will all be taken care of.
The Major Benefits of Reseller Hosting
While we’ve touched on some of the benefits above, there are a few more we should mention. Here are some the major benefits to setting up a reseller hosting business:
- Gaining a steady secondary income stream. Hosting tends to be a long-term investment, so once you’ve got some clients, you’ll have a consistent income stream.
- Subsidizing your hosting costs. There’s nothing stopping you from hosting your own sites on a reseller plan. If you price your packages appropriately, you could essentially enjoy free hosting for your own site.
- Low barrier to entry. Unlike other online businesses, there isn’t much of a barrier to entry to reseller hosting. All it takes is subscribing to a plan and getting the word out there. Your success is entirely up to your sales skills!
Naturally, reseller hosting isn’t for everyone, but if you’re curious, read on to find out how to get your feet wet.
How to Get Started With Reseller Hosting (In 2 Steps)
As we mentioned earlier, the barrier to entry is extremely low. In fact, virtually anyone can set up their own business based on this model in just two steps.
Step #1: Choose a Hosting Provider and Plan
Your first move should be to pick a reliable hosting provider. After all, your customers aren’t likely to stick around if your hosting service is slow or unreliable.
To start, you need to find out which providers offer reseller hosting packages. Then we recommend you check out reviews regarding those hosting services. There are many review sites that offer some pretty in-depth analyses for dozens of hosts, and they touch on all the information you need to make a decision. Our reseller hosting service also features plenty of reviews that you can check without leaving the site.
Once you’ve chosen a provider, the next step is to choose a package for your business. As with other options, reseller hosting is usually broken down into several tiers, each offering more bang for your buck – think storage, transfer, how many accounts you can create, and so on.
In most cases, you’ll want to start with one of the most modest packages available unless there’s one in particular that offers the features you need.
That way, you’ll be able to build up your client base without investing too much money up-front. Most hosts enable you to upgrade (or downgrade) your plan at any time, so you have room to maneuver should the need arise.
Step #2: Create Your Own Hosting Packages
Once you’ve signed up for a reseller hosting plan, the next step is to create your own packages. There are plenty of web hosts out there, so if you hope to succeed, your best bet is to target a particular market and tailor your services accordingly.
Take our previous example about a web developer who also offers hosting services. In that case, you’d be targeting a clientele that doesn’t mind paying a premium so they don’t have to worry about making sure their sites are running smoothly.
The real question here is, what can you offer that other hosting providers can’t? You might charge a little extra for being on call at odd hours in case a subscriber needs help, or perhaps you’re a WordPress expert who can help other enthusiasts.
Once you’ve figured out what your niche is, you’ll need to build a variety of plans around it. Many hosting providers offer a small number of plans but also include a variety of customization options. For this step, you should study the plans of other hosting providers in your niche. Then see if you can include features they don’t to one-up them.
Finally, consider creating clean, readable pricing tables for your plans. There’s a reason most providers use them – they’re one of the best ways to display your wares to the world in a concise fashion.
Once you have your hosting packages outlined, all that’s left is to get the word out and market your services. The hosting business can be very competitive, so keep your chin up and focus on offering the best service you can!
Reseller hosting may not make you a millionaire overnight, but it’s definitely something to consider if you’re a good salesperson. Not only can it help subsidize your hosting costs, but it can also provide you with a sustainable secondary income stream.
Here are the two steps you need to follow to get started with reseller hosting:
- Choose a hosting provider and a plan.
- Create your own hosting packages.
Do you have any questions about how reseller hosting works and how to get started? Don’t be shy, ask away in the comments section below!
Image credit: Pixabay.