Sell hosting under your own brand, at your own price, without any infrastructure costs
In this tutorial will find everything you need to know about reseller hosting. This is the ultimate reseller hosting guide. Professional and clear explanation of the topics from hosting experts. Edited by team of journalists. The article has been tested for readability and comprehensibility by 130, randomly chosen people. Their feedback was used for improvements, before publishing the material. If there is anything unclear or you notice inaccuracies, contact us. We immediately will fix it. Our goal is to give you clear and accurate knowledge. The "NextPointHost" differentiated from all misleading or fake tutorials written by most of competitors or their affiliates, with idea to trick you, to buy service from specific provider. Don't be surprised, if in the next lines read about things, that no one else writes about. They are the truth. This is the opposite side of the medal that nobody wants to talk about.
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What is Reseller Hosting?
Reselling web hosting is a fantastic way to generate revenue every month. You can grow your business without limits. The best part is that it’s incredibly easy to start. When you resell web hosting, you'll act like owner of hosting company, even though you're secretly working with an actual hosting company. You can do this with any type of hosting. Essentially reseller is individual person or small-mid size business, who rent resources at bulk from hosting company and then provide the space to third parties as entrepreneurs with smaller businesses. The business model is the same as the way of working of the all physical brands, who use subcontractors. As owner of your resources, you can allocated it at any combination suitable for you and to sell hosting packages to the world. Exposed in plain language, consider reseller as person, who rent the building with many floors and rooms. The rent of the whole building is very cheap. The owner of the building, allows the renter to change it, as he want. Then the initial rentor (reseller) offer smaller amount spaces to third parties. For example the rooms on the first floor are provided to the owners of shops. The rooms on the second floor are provided to business owners who need office spaces. The rooms on 3rd floor are used as apartments and they are provided to people who need homes and etc. The total amount of money which the reseller takes from all sub-rentors is much bigger than amount of money who, he paid to the owner of the building. That type of hosting is typically used from aspiring entrepreneurs, who want to start their own web hosting firm or for current web developers and designers who desire to add additional services to their brand. This is win-win business for both sides. The hosting companies sell easy big amount of their resources. The resellers earn money without need of investments into expensive and complicated infrastructures. By default resellers have much bigger ROI than the hosting companies. Our observations show that resellers generate 2-3 times more profit compared to real hosting companies.
How reseller hosting work?
Here are the steps to establishing a web hosting reseller business:
- Select and be partner with the best hosting company for your business.
When you're reselling hosting, you need to work with a host that you trust. This will help you achieve your revenue goals. For example If you’re offering SEO services, speed becomes crucial. If you’re offering turnkey solutions, better workflows become super important. If you’re hosting high-traffic websites and you’re looking for a host that you can consult with on how to effectively scale your client sites. Whatever the case is, choosing the right company to partner with, will help you optimize your work and provide superior services for your clients. Take, the NextPointHost. They built the best possible hosting and management solution for resellers, designers, and developers. Their easy-to-use dashboard allows resellers to access all of their clients from one location. The platform comes equipped with blazing fast performance, top-notch security, and nightly backups for every single site. The world-class support team provides help for both you and yours clients.
- Purchase the reseller package that meets the goals of your business.
During researching of your potential hosting partners. Put special attention, do they offer a wide range of solutions or specialize in one particular thing? Choose a partner, that have wide range of solutions. This will allows your business to growth in next years. Don't forget that needs of your clients will change during the time. Some of your client's now have small web sites, but what will happen, after few years, when they require from you VPS or Cloud server, because their online store have thousands of visitors per day? You'll be able to provide that service only if your partner allow you to resell it. Most of hosting companies don't have such services. So you will be pushed to lost the client. As result you'll lose a lot of money and will break a business relationship built for years.
- Understand your target market to locate your new customers.
Having a well-defined target market is more important than ever. No one can afford to target everyone. Small businesses can effectively compete with large companies by targeting a niche market. Many businesses say they target "anyone interested in my services." Some say they target small-business owners, homeowners, or stay-at-home moms. All of these targets are too general. Targeting a specific market does not mean that you are excluding people who do not fit your criteria. Rather, target marketing allows you to focus your efforts and brand message on a specific audience that is more likely to buy than you, than from other competitors. This is a much more affordable and effective way to reach potential customers and generate business.
- Create your own branded hosting packages.
Some clever clients may see that they pay $100/month for hosting, when fake ads, from the largest USA brands, offer packages for 1 cent per month. Then probably, they'll look for a cheaper price on the web. However, the price is not everything! Be honest with your clients. Don't use misleading advertising, spam, and any other unfair techniques! This will make you different. It will give you trust. Your client can go to the web site of the company with the alligator logo, will try to purchase the service for 1 cent, but will see that is misleading advertising and he have to prepay hundreds of dollars for hosting plan. Then he'll receive one month bonus at price of 1 cent. This is not fair. So he will return to your website and see that for $100/month it is receiving much more additional services. Services which cost a lot of money at websites of your competitors. Add hosting services for “free”. This will avoid, the cost of hosting to be a discussion point. It will discourage your clients from looking elsewhere, since the price is attached to multiple services that you’re providing. The client's are lazy. They don't want to study new things. They want service for which to pay and it's to work. Use that fear! No one don't want to pay less for something that will not cover his needs. Create a personal touch with the customer. Big hosting companies will not create such relations.
- Decide your price and set good margins.
You think that whenclients buy from you, that it's a rational process? This is false. Very big deception is that purchases are rational process. No matter what you are selling, buying is actually an emotional decision. According to many studies, our brain is not really good at calculating how much something is "actually" worth. Instead, our brains take a "best-guess" approach based on the pricing of other things that thinks are similar. Premium pricing makes you more desirable! It’s easy to think that the lower the price, the more people will buy. That’s not the case. Because people tend to perceive companies with higher pricing as more prestigious and, as a result, more desirable. They also assume that a high price indicates higher quality as well. Take an example from Apple. Their products are one of most expensive on the market. But this is not an obstacle, even poor people to buy the iPhone, and waiting delivery after few weeks. It doesn't matter that hundreds of other smart phones are on the market and their prices are much lower. So if you’re paying $10 per site to your host, don’t charge your clients $12. Healthy margins of 200-300 or even more percents, will help making sales. They will be your main engine of recurring revenue. Very important is to make sure you set a stable, clear price without hidden charges, and explain all the benefits your client will receive by hosting their site with you. You should have premium pricing, because you attract fantastic premium clients, you make more money and profit, and you repel the P.I.T.A clients. Premium prices differentiates your company from your competitors. There is a fantastic book called Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. it will give you much more information, why in every situation is better to offer premium services on higher prices.
- Sell hosting packages to your clients.
Depending on your hosting partner, you may be able to take credit for a lot of the features your host offers. For example "NextPointHost as global leader in hosting industry" provide you with a tons of features that you can advertise on your client packages as a way to showcase the value they’re getting for their money. For example, you can tell your clients that “you” will:
- Migrate their site for free.
- They will have custom email accounts with the site name.
- Receive access to Email Marketing Tools for creating mailing lists.
- Provide SSL certificate to their site.
- Back up their site every night.
- Provide SEO and Marketing Tools, to be into google's top results.
- Offer CDN for lightning fast website loading.
- Top-notch security.
- One click creation of website.
- Multiple PHP Versions for compatibility with older scripts.
- 99.999% Uptime Guarantee.
- and much more.
Of course, we would handling all of this in the background for you!
- Earn good profit!
First off, the amount of money that you make totally depends upon your marketing tactics. Effectiveness of your advertising campaigns, conversion rates, and then the margin at which, you operate. We have resellers, who makes six-figure income. Of course, this happens after a hard, consistent and systematic work. Don't expect that you will become a millionaire for a few months. Web hosting reselling is very profitable business, but as every other businesses require a lot of work, before earned first million. Making money as a hosting reseller becomes easier and easier as time passes by. We recommend to set $1000 target at the end of 6th month. Next lines will explain how that happens. If you manage to attract 4 customers every month. This is just 1 per week and assuming average order size to be just $50. You will earn $200 at the end of the first month. Don't get disheartened so soon. This is just the beginning. The magic of compounding makes all the difference here. Continue to do the same next month as well! The profit in the second month would be $200 from second month’s customers plus at least $100-200 from recurring billing of the first month clients. Now at the end of second month, you'll have $300-400 profit. Likewise, your profit margin in the third month would be $200 from third month's sales plus $100-200 from recurring billing of previous month's sales, plus $100-200 from recurring billing of first month's sales. As result at the end of 3rd month your profit will be $400-600. Working diligently and following the same logic! Profit at the end of 6th Month will be $700-1200. Now, at this point, even if you stop generating new orders, you'd be making a stable $1000 monthly profit. Merely by sustaining the existing customers. You literally don’t have to do anything, because once your customers are subscribed to monthly hosting packages, there’s nothing anymore that you really need to do. Since you're reselling hosting packages, you won't have to worry about customer service. So long as you're reselling the hosting packages of a reputed web host. At this point, all that you need to do, in order to sustain your $1000 monthly level is to add a few more customers, as and when any of your old customers go off. However, you must be wary of issues with reselling hosting packages of unreliable firms. So, it's important that you buy web hosting packages only from a reputed firm as a reseller.
Why you should be a reseller
Reselling hosting has the obvious perk of adding sweet revenue to your bank account. Especially once you start to resell hosting to a multitude of clients. You’re going to start seeing a large increase in profits. Reselling hosting offers you a fuss-free way to earn huge income. Moreover, reselling hosting offers a bunch of added benefits for your firm. It is fully compatible with all other services you already offer such as web development, SEO optimization, domain name registrations, blogging, marketing strategies or any other jobs related to web bussiness. Partnering with a great host as NextPointHost allows you, to easily know the state of each of your clients’ sites. Then when one of those clients request from you to update a page, you’ll see well-know standard setup, instead of fumbling through a different and unfamiliar hosting panels each time. By having all of your client sites on the same host, your won’t have to waste a bunch of time to familiarize with the host every time. On top of that, many designers and developers find that becoming a reseller allows them to maintain full control of a client’s web presence and management. If you’re ready to grow your business, reselling hosting is a natural next step.
How to Start a Web Hosting Business
Web hosting forms the core of all sorts of e-business opportunities today. The reason is simple. Every business or website needs a server to function. Hosting provides secure space to the files required for its operation. Web hosting is a great business opportunity in itself. Fortunately not too many succeed in deciphering this simple secret! This reduces your competition. Like any other big business, here are many big companies. These companies invest millions in hardware infrastructure and training their staff. They have hundreds of employes. So some people feel, that's not a very realistic idea - to be their competitor without much investment and many technical skills. Some of these people are right. They forget the opportunity, to generate thousands of dollars when cooperating with a real hosting company. You can reselling the hosting packages of top hosting brand such as NextPointHost. By making use of reseller hosting, you can start a brand new web hosting business, without investing a fortune and without having any prior expertise. Needless to mention, no matter how simple it sounds. It's hard work. As any new business, not everyone's attempts will pay off. Follow above steps and you have all the chances to succeed in this field. There are two things, to focus on. The first one is promoting and marketing your new start-up business and attracting more customers. The second one is following the advices of your host parthner. There is no need to waste your efforts for things, that doesn't works. Over the years, our team has gained a lot of experience that we will give you on. In case you need advice on what to do or don't do, our 24/7 best support will help. Reseller plans are designed for you to earn money. They are least expensive and easiest way to start a hosting business. By using one control panel you'll set up and manage the back-end of websites, emails and domain management for your business as well as your clients. Many customers not have the expertise in this area. They will be completely dependent on you for setup and changes to their service…allowing you, to charge a bit more for this hands-on type of service. Your job will be to forward requests by your clients to us. Then we'll handle the work at background. No one except you, will know that we exsist. When we complete the dirty job, you will be superhero, in the eyes of your clients. You'll be the cool guy, who know everything. The cool man who can fix everything.
What can I offer as hosting reseller?
Some of the more common features or functions that you can offer to your clients as a reseller are:
- Disk space.
- Email accounts.
- Backup services.
- Mailing lists.
- Domain names.
- SSL certificates.
- Website migration services.
- Latest cPanel control panel.
- Installation of wide range of scripts.
- Software licenses.
- Premium 24/7 support (usually handled by the hosting provider).
- VPS servers.
- Cloud Servers.
- CDN Services.
- everything additional which the parent hosting company offer.
How to hide that I'm reseller?
One of the most important things, that each reseller has to do, in order to be successful is to hide the mother host company. In other words - no one except you, shouldn't know that you resell services of another company. All yours clients have to know, that you are the hosting company with bigger team. Otherwise, there is a great risk for one of your customers to give up your services. Then to contact the parent host company directly. The companies with high business ethics, as NextPointHost, will reject such requests. They protecting the good business name and reputation of their resellers. Unfortunately not all hosting companies have these ethics rules. Unfair partners, can even try to steal your hosting clients. Be always alert! Protect your online business with all possible ways. That's business as every other. Dangers are lurking everywhere. When you make good money, many people will try to steal it.
NextPointHost helps its resellers! All our resellers receive White Label Hosting!
White label hosting is the ability to re-sell another hosting company’s servers, bandwidth, and hosting services as if they were your own company, without any one to know who is the real producer of the service. To achieve this goal, will need to receive from your partner:
- Private Name Servers - will help to create separation of your brand from the hosting company whose servers you’re utilizing.
- 4 Dedicated IP Addresses - 1st will be your main site. 2nd ip will be for your first private name server (ns1.your-domain.name). 3rd ip address is for your second name server (ns2.your-domain.name). 4th ip address is necessary for hosting the websites of your clients.
- Reverse DNS records - reverse DNS lookup or reverse DNS resolution (rDNS) allow to find, who is the owner of specific ip address. The lookups for your dedicated ip address must to show your brand name, not the name of parent hosting company.
- Easy to Use Control Panel with private name - Your clients must to open their control panels via name as cpanel.your-domain.name not via name as cpanel.parent-host.com.
We advise you to avoid partnerships with companies, which don't provide everything necessary to protect your brand.
What knowledge is necessary to be web hosting reseller?
Once you choose a reliable partner like NextPointHost, don't need any technical skills. Your provider will handle all “dirty” technical work. You can focus on building your business. Server hardware, connectivity, network infrastructure, hardware setup and maintenance, security and updates for your servers are all that will be addressed to your web hosting provider. It’s a good idea to check into these things as you do research to ensure that you’ll receive the best tech support if certain issues arise. To become successful web hosting reseller, every additional business knowledge and skills will be asset. You should have the ability to make a simple feasibility study on the market and draft your own business plans and goals. This should include:
- How much money you want to earn?
- How much time you have for this job? Probably initially, that will not be your full-time work. Make sure you have enough time to do it.
- Define specific market on which to sell - for example if you knowing spanish, will not be good idea to sell on chinese market. Because most of your potential clients, will want to lead the communication with you on their mother language. So for you will be very hard to translate what they are expecting from your services.
- Basic working knowledge of how to run a business. You need to know how to record keeping of sales, expenses, accounts payable, accounts receivable and etc.
- Estimate how many customers you expect - that's very important for choosing the right plan.
What happens when my business grows?
Make a business growth plan. Remember that your clients choose you as host due to their point of view. They don't know about your relation with mother hosting provider. They will expect from you solution of theirs constantly changed requirments. Usually, you will not know about their intentions in advance. Because everyone keep secret, his business strategy. To be able to meet the new business challenges of tomorrow day, choose provider as NextPointHost who will allow you to resell wide range of solutions. You must be able to upgrade instantly without interruption of your services! Otherwise you can lost some of existing clients. The clients will not be happy with the interruption of his service, no matter of the reasons. Think about the satisfaction level of existing clients, if you interupting their service every time, when other client reqest upgrade of his service? Usually our competitors says "you can upgrade your reseller hosting account at any moment", but they "forget" to mention that the upgrade leads to interuption of the services from few minutes up to few days, depending of differect factors which are out of your control. This little detail "without interruption" can cost you a lot. Only high quality hosting plans of NextPointHost, allow upgrades without interruption. That's possible due to our unique patented technologies as AlwaysUP Protection and Never reboot protection. Thank's to the efforts of our engineers and technology partners, we are able to update our servers immediately as new software updates are available (including OS kernel updates) or make reconfiguration of the reseller plan - WITHOUT the need of reboot of our servers. Thus avoiding downtime due to maintenance!
How do I choose the best hosting provider?
It’s important to know that you can offer to own customers the best possible web hosting experience! Prior to start building your clientele choose honest and reliable hosting provider. There is no recipe that gurantee, you make the right choice. Our recommendation is to follow your personal feelings, about the provider. In our view, honesty is the most important quality that you need to focus on. This is a quality, extremely rare to find in today's world of fake news, fake websites and fake identities. As in every other business, here in reselling web hosting, different things happening constantly. Sometimes they are good, sometimes they are bad, no matter of the extra measures taken to prevent bad ones. Be realistic. Money requires labor. So if you know the truth, you'll be able to explain the situation to your clients also. You'll be able to take the right decisions alone. Stay away from all unfair providers as the Subsidiary brands of Endurance International Group (EIG), which manipulated you! They have occupied all possible charts, because have a lot of money. They are owners in shadow of many "authoritative" editions. These "independent" ranklists give all sorts of awards of their companies. Usually these are comparisons between different brands of the group. In this way you have the impression that you choose the best. But the reality is different. You buy services, coming from the same people. Such disloyal tactics are used in social networks, inside forum posts and many other places. So don't blindly believe of everything that google show you on the first pages. Most of the times, the real value information is hidden at the bottom of not so big websites. Be detectives and soon will be surprised how many false and inaccurate data you will find. Do an experiments with suspicious sources of information. By default they will not answer of your questions or comments about inaccuracies. They will reject to add to their ranklist "unknown" company, without to pay for that thousands of dollars. Be creative there are a number of things that indicate the presence of false results.
We hope the article gave you a good overview what "White Label Reseller Hosting" is and how it works? It's designed to helps entrepreneur, web developers, SEO optimization firms, internet marketing agencies and freelancers to extend their portfolio and make money. In case you have any additional questions, feel free to submit them as comments to us. In case that article helped you to answer some of your questions, Share it inside all social networks! Share it inside the forums. Share it into websites. Let all people know, how valuable the article is! That simple step will help us to provide you more articles in the future. Thank you for the support!