Steps To Make Your Own Website Logo
Steps To Make Your Own Website Banner

Reseller Hosting – Start Your Own Web Hosting Business

Reseller Hosting

Reseller Hosting is basically buying in wholesale and selling in retail. If you buy sufficient space on a server from an original web host and then further resell that space to a number of clients as if in a shared hosting then you can earn the difference. As a reseller you can offer hosting services as if from your own company by utilizing the resources of the underlying parent company.

What is Reseller Hosting?

Reseller is a type of web hosting where the account holder is allowed to sublet his or her disc space and bandwidth to other interested clients. It is what a trader does - buys commodities in wholesale and then earns retail profit on it by selling it at his own avenue.

In this case a reseller hires space from an established web host just like any webmaster will do. The only difference is that web hosts rent out reselling space at attractive discounts, although it might seem to be costlier than a shared hosting plan. This can be on a dedicated server, entirely for a reseller, or he can seek a block of shared hosting space. This is earmarked for reselling and the account holder can design his own packages to suit the features he has at his disposal. Sometimes a reseller designs a fixed plan that is common for all his clients.

Go to Top

Who Usually Is More Interested In Reseller Hosting & How Do They Work?

Typically reseller type of hosting is suitable for someone who is already involved in web related business. Running a fully fledged web hosting company requires lot of capital, besides technical know-how. Reselling is a facility for ambitious webmasters who are looking to expand their income by hosting other people’s websites but lack in capital to establish their own independent business.

Web developers, web designers, web consultants and everyone who is in some way or the other connected to the web industry is a potential reseller hosting client. It is a way for them to vertically integrate their own business and that too without dealing in startup gestation and teething problems which usually are associated with any kind of new business setup.

These people are already in contact with people in the same field. They usually have an infrastructure for themselves and also have a target market. Chances are if someone is getting one’s website designed or developed from these people then one would be inclined to let them host it too for them. This way they can value add their services.

Most web hosts recognize the potential hidden in these innumerable web designers around the globe and to tap this segment they have ingeniously designed reseller hosting packages. They understand the marketing tactic that one usually prefers to buy something from someone known to the purchaser. That way web hosts have been able to reach remotest of the clients through a localized marketing channel created by these enterprising web designers whenever they buy reseller hosting plans from these web hosts. This is a part of a profit sharing strategy where both the parties benefit.

The web host allows all resellers to market their own plans and most importantly under their own brand names. Depending upon the type of clients one would like to cater to, a reseller account holder designs a number of plans with varying features and costs and markets them in his own style. This way he is basically redistributing various server resources available with him.

This type of setup is very attractive to web related people because normally they don’t have to provide any technical or any other support. Any query is directly handled by the parent company. All kinds of server related assistance is extended to the end user directly without creating any problem for the reseller account holder. This is a great incentive for someone who is in a service oriented field and has less experience in maintenance and operation of hardware.

A reseller sets up accounts for his customers through user interface Control Panels. Some resellers have their own custom made Control Panels or they use other proprietary popular and well known control panels. One of the most commonly used is cPanel although there are different types available for different operating systems.

Go to Top

Reseller Hosting Is Not Affiliate Marketing

Reseller hosting looks like affiliate marketing but is quite different from it. The main difference is that in affiliate marketing you drive traffic to your original web host, through your own website or any other method, and if any visitor buys any service from it then you get one time commission on the sale generated. That person then becomes the client of that original web host.

In contrast reseller hosting is a true business. Here you are just resourcing your products from an original web host and then marketing them further at your own end. Any client that buys those products (web hosting plans) becomes your client and generates monthly revenue for you. It is not about one time commission but about a business model that has recurring income.

When one buys a reseller hosting plan from a web host one has to shell out a fixed amount at annually, quarterly or monthly basis. Then it is up to the reseller how he markets his products – that is in how many sub units he further divides his resources to be in net profit. Every new client is a profit center for him.

Affiliate marketing has less income because it has less work involved in it. Reseller type of hosting has potential to grow into a giant business and hence requires lot of work. To develop their client base all resellers resort to aggressive marketing. Just like in any other business their income is not immediate and takes time to grow.

If you find this website useful, please consider helping with its production with a donation.

I'm very grateful for your help.

Go to Top for page on Reseller Hosting

Go Back to page on Web Hosting

Find & Register Your Domain Name
(Enter here your domain name without prefixing www.)

Web Hosting only $1.99/mo!!

iPage Affordable Web Hosting only $2.95/mo

Free Domain Registration, Free Setup, Free Support -- All risk free!

If you find this website useful, please consider helping with its production with a donation.

I'm very grateful for your help.

Most Visited
This Website contains a Rich Resource of more than
700 Web Directories
& Lists of
Best Web Hosts
for all types of web hosting solutions.

Images used in this website have been purchased from Dreamstime.

Royalty Free Images





Enjoy This Site?
Then why not use the button below, to add us to your favorite bookmarking service?



Copyright© 2008-2009.