How to Run a Successful Web Hosting Reseller Business

A hosting reseller is a hosting business that does not own any hosting infrastructure. As a reseller, you rent server and bandwidth space from a conventional hosting provider at wholesale prices, subdivide these resources and resell them to your own clients.

Table Of Contents

Picking the right provider

As a hosting reseller, you do not own any of the infrastructures your clients’ websites will be running on. You are fully dependent on the parent host’s physical and virtual assets. The host’s reliability will directly determine the extent to which you can keep your customers happy. Picking the right web host is crucial.

Makes sure they offer the right tools

Try to partner up with a web host that provides the tools you need to ensure your business’ success. When evaluating different web hosts' reseller plans, the following tools, features, and services are what you should keep an eye on.

Strong security - Choose a web host that demonstrates strong security controls. These include firewalls, antimalware software, antispam systems, SSL certificates, and content delivery networks (CDNs).
Dedicated IP addresses - As a reseller, you’d want your account assigned an exclusive IP address. Also, some of your clients may ask that their websites run on their own IP address. For either scenario, find a web host that allows your reseller account to distribute dedicated IP addresses.
No limit on cPanel licenses - The cPanel control panel makes it easy for your clients to manage their own websites. Your goal is to sign up as many clients as the capacity you purchased allows. Choose a web host that does not limit the number of cPanel licenses your reseller hosting account can have.
Domain name reselling account - As a hosting reseller, the goal is to offer an end-to-end solution to your clients — from domain registration to website creation (via website builders like WordPress) to web hosting. Get confirmation that the reseller plan you choose includes domain registration reselling.
High-Quality SSDs - Solid State Disks (SSDs) provide high performance per GB of storage compared to traditional Hard Drive Disks (HDDs). There is often not much of a price difference between reseller plans that offer SSDs and those that do not, so this is a perk you shouldn’t miss out on.
Automated backup system - Without backups, the time, money, and energy your clients dedicate to building their websites over the months or years, could go down the drain in seconds. Check that the web host runs daily (or at least weekly) automatic backups of their web servers.
A free-of-charge WHMCS - While your clients need cPanel for website management, your reseller account requires a system like WHMCS to help you with managing your clients. A good parent web host would provide WHMCS free of charge to reseller accounts.
Customizable name servers - By default, your clients’ DNS requests would be handled by the parent web host’s public name servers. If you want to conceal this from your clients, pick a web host that allows you to configure custom name servers for your clients’ DNS requests.
White-labeling options - This goes hand-in-hand with customizable name servers. With white-label branding, you sell hosting plans under your business name. Your clients do not interact with or know the name of the parent web host you are getting your hosting resources from, which is a big perk as you can build your own brand.
Softaculous installation scripts - Work with web hosts that provide auto-installers, such as Softaculous. Softaculous scripts facilitate the quick deployment of hundreds of web applications like WordPress with just a few clicks.

Setting appropriate prices for your services

Web hosts offer their infrastructure to reseller accounts at wholesale prices. That way, resellers can define their own plans and prices that are still competitive compared to the parent web host’s retail prices. Study the market, define your target audience then set prices accordingly.

Creating a reliable support system for clients

Your clients will need help from time to time. Develop a support process that facilitates easy reporting of issues and speedy resolution. Have multiple support channels such as live chat, email, web form, and ticketing system.

Marketing is key to hosting and reselling

When you establish a hosting reseller business, you will be up against not just thousands of other hosting reseller companies but also hundreds of actual web hosts. Effective marketing is crucial to creating a steadily growing stream of clients. Here’s how.

1. Create a provider website

Create a website for your business. This will be the place where you provide all the information a client or prospect would need to know about your company and products.

2. Focus on a particular niche

To stand out, identify an underserved niche or one where you have some industry expertise/reach. For example, if your “day job” is as being an architect, you could gain rapid traction by first reaching out to your peers.

3. SEO

The bulk of traffic to your website is bound to come from search engines like Google and Bing. Apply best on-page and off-page SEO practices to increase your visibility in search results.

4. A blog that provides value

Create a blog where you regularly post informative, well-researched content for clients and prospects. Through this, you’ll be able to cultivate some authority in the niche and help your clients resolve issues on their own.

5. Referral system

Develop a referral system that provides financial incentives for clients and third parties who recommend your product to their social circle.

6. Ensure you have WordPress hosting covered

It’s not by accident that WordPress is by far the most popular content management system. It is stable, simple, and easy to use. Chances are, many of your clients will want WordPress hosting.

7. Testimonials and review

The power of social proofing cannot be overemphasized. Provide a means for your clients to rate service quality or share feedback. With their permission, publish positive testimonials to make sure you are not relying on artificially generated marketing.

Conclusion

Whether as a side gig or as a primary income source, a hosting reseller account can be a means of building a viable online business. Apply these tips and guidelines to increase your chances of success.