Competition between hosting companies has grown quite stiff due to the consistently growing demand for the service. It frankly is a cutthroat market. Does it make sense to get into the business in light of this? If so, why?
This article will explain why this type of hosting can still be very profitable.
First, let’s define its concept. Reseller hosting is where you launch and run a web hosting service and sell hosting to end users. You buy hosting packages “wholesale” from another hosting company, make some adjustments, customize and personalize them, and sell them to your customers, ideally at a profit.
You don’t need to make an investment in hosting infrastructure or have a technical background to get into reselling hosting. All that’s necessary is to buy a suitable hosting plan and get a reseller account. You come up with a business model, set a price, and start selling. It really is that simple.
It is still a highly feasible business venture to resell hosting. Here are some more reasons for this and how to be successful.
You can run it from anywhere
Reselling hosting can be very lucrative because you can run this business from any location, even the remotest one. Most people run it from home. You don’t need to check or maintain physical servers, so you’re not tied down to any specific place. You can work anytime and from anywhere.
This saves travel and transport costs, costs to rent an office, and many other expenses associated with business management on location.
Hosting resellers have a user-friendly cPanel and automated billing integration to ensure effective website and business management and provide quality hosting services. cPanel makes website management almost effortless. You can create and change reseller accounts, upgrade or downgrade client accounts, delete accounts, create flexible and customized hosting packages, etc.
Billing integration software makes it easy to accept payments, process and generate invoices, and much more.
Increased market demand for custom hosting
The demand and need for affordable, convenient, and personalized web hosting are constantly increasing, especially among startups and newly founded small and medium-sized companies. Being new to the industry, they require dedicated website hosting assistance and support. Big, reputable hosting providers have a great deal going for them, but they’re not always able to provide support on a specific individual level. They have too many customers, and dedicated support is impossible to offer.
Leading hosting providers also struggle with aspects like personalization and customization. If you are reselling hosting, you can fill this market gap by meeting customers’ needs for unique and creative solutions. If you’re able to fill this void, it’s obvious you can make a profit. What’s more, you will gain experience in your specific niche, building a reputable business with time.
Growing a brand as an independent company
Companies that resell hosting provide a white-label service, which means they can present themselves as an independent hosting service. They can sell web hosting plans and packages under their own unique trademark. In essence, the white label conceals their connection to the parent web hosting provider. This is a critical feature in terms of creating a solid brand identity as well as a successful and lucrative business.
Low initial investment
Large web hosting providers need to pay for infrastructure for server storage, management, and maintenance. Their servers need a lot of equipment and physical space to function optimally. As a provider of reseller hosting, you don’t have to invest in any hardware, software, or server infrastructure. This is all managed by the original web hosting company.
Hosting resellers save money on server maintenance and support. They only need to invest in a solid reseller hosting plan.
All in all, it’s very lucrative and profitable to resell hosting in 2023. You can sell personalized packages and plans and provide dedicated customer support. It’s the perfect option for a web professional. Including hosting in your range of development or design services will help set you apart from the crowd.