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The News God > Blog > Business & Finance > Is Reseller Hosting Profitable?
Business & Finance

Is Reseller Hosting Profitable?

PAUL CARROLL
Last updated: 2022/07/25 at 8:40 AM
PAUL CARROLL Published July 25, 2022
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8 Min Read
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The most heard term in the current times amongst friends is Start-up. The current generation is always up with their mates on the discussion of a start-up plan! To our surprise why they always miss out on the revenue generating concepts such as reseller hosting, affiliate marketing, etc.

Our mind is flooded with multiple ideas to start a business venture. The ideas may vary as per the individual’s perspective depending on their specialization. The person good at designing outfits may look for a designer studio, someone good at cooking may think to start a food lounge, in such cases there is a high investment and the risk is even.

There are many innovative ways to remunerate yourself with a business idea that has low investment and rapid growth! One of the concepts heading less investment and high reward is reseller hosting. It is the most effective business of web hosting with less technical know-how.

What is Reseller Hosting?

The reseller hosting is a type of web hosting where the client will purchase the hosting plans in large volume from the service provider. The reseller will sell the hosting service to its clients that it purchased in bulk from the merchant web hosting firm that offers the reseller plans. It involves the process of renting the server from a well-known hosting firm and providing the service of re-renting with the required resources to the clients.

The web hosting company who owns the servers will manage them, and monitor the hardware part and provide technical support to the customer. The reseller has the opportunity to purchase the hosting plans from the hosting company in quantum and avail the required server space charging a monthly or a yearly subscription fee. In major cases, the reseller takes the responsibility to provide the customer service, billing, and availing the required resources as per the clients’ demand.

The concept is a benefit to the web-development business firms with a large client base. They can enjoy the additional profits by providing their loyal customers with these add-on services alongside primary web services. For instance, the web-designing firm will always have a client looking after the hosting services. In such cases, they can sell the hosting packages to meet their clients’ needs without any investment.

Benefits of Reseller Hosting 

#1. Extra income source for web developers

If you are involved with the web development business, then to have a web hosting reselling is an addition to your income. The business organization or clients who are in need of a website, excluding the startup or website techies, will first reach out to the web designer for the hosting requirement. Generally, when a web developer gets the customer requirement, he will complete the assignment of customized web designing and connect him to the web hosting firm.

Instead, if the designer has his own hosting space, then he will accommodate the clients’ server space requirement and host the website for them adding up the profits. Moreover, the customer will prefer the one-stop-solution services to stay out of the additional task and focus on their primary workload. In such cases, if you can provide the package of developing, designing and hosting the website all by yourself, then it will benefit both the customer and the developer.

#2. Needs Less technical knowledge

The reseller hosting module has been a success as the web developers include the web hosting services to their existing clients as they have to spend less amount and not waste much time to adapt to new technologies. To set up a reseller hosting business can be done with ease using the WHMCS software which enables you to get the complete access of the business, which monitors the payments, sends reminder messages, and e-mails to the clients who are left to pay the hosting fees.

Additionally, it has the option to generate or remove the clients’ accounts, and also control the usage of the customers. The software based on Graphic User Interface provides an extra benefit to operate it with ease. It provides a dashboard which already has everything on point, and comes up with a ‘Help’ section that you may need to resolve certain issues. Moreover, the popularity of reseller hosting has made available multiple active forums to get the solution.

#3. Requires low investment

The most important factor of consideration in any business setup is the capital. It refrains a lot of innovative and exclusive ideas to reach heights due to the high capital investment. The best part of being a reseller hosting service provider is that you may not need plenty of investment. The majority of the investment is in the scope of the merchant company who lends you the space to provide reseller hosting services. The infrastructure cost, set up of the physical servers, hardware issues, paying the technical team to monitor the servers, all is managed by the merchant company.

The only thing you need to invest in is to rent the server space from the hosting company in bulk and then distribute to the customers as per their needs. The reseller hosting plans are very easy to explore starting with a nominal cheap hosting plan, and the subscription charge increases as the demand scales high with the business expansion. The higher hosting plan fees will justify the resources it will provide to enhance the business website.

#4. Increasing need of personal hosting services

The larger group of people are unaware of the know-how of the website’s internal workings. For example, the website owner of a small business firm like a grocery store, who falls in the beginner’s category in the knowledge of web analysis, requires personal attention. The merchant company may not be able to satisfy such clients as they already have a large customer base to deal with a limited technical team, which leads to the costlier packages with no immediate response. The hosting resellers have a small group of customers to attend to, and so they ought to satisfy the customized hosting needs of their clients with a dedicated customer service.

Final Words

The concept is on the rise with the increasing digitalization, and the resellers have the opportunity to make a handsome profit from the business idea that involves less investment and technicality. It not only remunerates the website developers but helps them to expand the portfolio of the services they offer. Reseller hosting is the best business concept that has less capital investment and a good profit ratio, benefiting the customers with personalized and dedicated hosting services. 

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PAUL CARROLL July 25, 2022
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