How To Start a Web Hosting Business and Become a Reseller

How To Start a Web Hosting Business and Become a Reseller

A hosting business allows providers to rent out server space for websites and web apps. Many hosting companies provide Reseller Hosting services, enabling web professionals and freelancers to start their own web hosting business without delving into server management intricacies. As a reseller, you buy hosting from a primary provider and sell it to your clients at a profit.

While venturing into the web hosting world might seem complex, it’s more accessible than many realize. In this article we’ve outlined the steps so you can easily learn how to start a web hosting business.

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Takeaways
  • Reseller hosting is a web service that creates an avenue for anyone interested in starting a web hosting business.
  • Choosing a hosting brand that is not right in terms of pricing and infrastructure is one of the problems encountered by web hosting business owners.
  • As a reseller of hosting services, your only concern is choosing the right hosting provider and marketing your services to your clients.
  • Web hosting business will allow you to generate additional income to grow your existing business and retain your clients.
  • You must understand your goal, build a business website and choose a hosting provider to start a web hosting business.

What is Web Hosting and Web Hosting Provider?

Web hosting is a service that allows individuals and businesses to deploy their websites or web applications on the internet. To use web hosting, you will need to purchase and register a domain name, the unique address for accessing a website, and a hosting plan from a provider.

A web hosting provider is a hosting company that provides web hosting services for individuals and businesses to set up, host and run their websites or web applications on the internet. This is made possible by servers which act as storage space for a website’s files, allowing them to be accessed by users when they type in  a web address on their browser.

  • The hosting provider also owns and maintains these servers, ensuring that they are running smoothly and efficiently.
  • A team of experts manage the servers’ technical aspects, such as security, backups, and updates.
  • Users can focus on creating and managing their websites without having to worry about the technicalities of hosting them.

A Reseller hosting plan is a web hosting service offered by some providers that allows individuals or companies to rebrand and resell hosting services under their own brand name. It allows you to have you own hosting company with minimal investment or technical know how.

Reasons to Start a Web Hosting Business

Why consider starting a web hosting business even when you already have your client’s trust and your current business is growing?

Read our 6 reasons why you need to know how to start a web hosting business below:

1. Easy to start

Learning how to start a web hosting business is relatively easy because the complexities of managing physical servers are handled by the hosting provider, allowing you to focus on marketing your customized plans and services to clients. Since the hosting company has done the hard work, you can do the easier work by providing the needed resources to keep your clients happy. All you need to do is choose a hosting provider, sign up and buy a reseller package to start on a small scale and find more clients.

To market your web hosting business as a reseller, it is important to:

  • Research and understand your target customers.
  • Define your business mission and focus, such as providing exceptional customer service, unique hosting solutions, or strong security.
  • Leveraging social media and creating engaging content can also be effective tools to attract and engage customers.

2. Leverage your existing digital business

There are many opportunities available for software firms offering web development or design services to expand their business by offering web hosting packages as well.

You can leverage your existing digital business or software house by promoting web hosting as a call-to-action (CTA) on your website. This can give you a competitive advantage over your competitors and provide an additional revenue stream for your business.

Additionally, offering hosting services can help you retain and upsell your current customers. As you already provide web development and design services, adding web hosting to your service list will make you a one-stop shop for your clients, making them less likely to look for other providers for their web hosting needs.

3. Profitable Business

Web hosting can be a profitable opportunity for individuals, freelancers, online entrepreneurs, web development firms, and web developers. By offering web hosting services, you can create a steady and reliable revenue stream that can help to support and grow your existing business, and generate extra income without having to put in a lot of additional work.

A key aspect of a successful web hosting business is having a solid plan in place, identifying your client’s resource needs, and providing value from the start, which will foster trust.

4. Increase customer retention

You can increase customer retention by offering everything your clients need in one place. This can include web design, domain registration, and other related services. By providing a comprehensive solution, you can make it easier for your clients to work with you, leading to long-term relationships and repeat business.

5. High Demand

Another reason why web hosting is a profitable venture is that there is a high demand for it. Every business, regardless of size, needs a website. Additionally, with the rise of e-commerce, there is an increasing need for reliable and secure hosting solutions. This creates a large market for web hosting services.

6. Low Startup Cost

Starting a web hosting company is profitable in today’s world because it is relatively inexpensive to get started. You don’t need to worry about the costs and management of physical servers or data centers. All that needs to be done is to provide the web hosting package. This means you can offer competitive pricing while still generating significant returns.

The Pre-Requisite – What It Takes To Start a Web Hosting Business

Starting a web hosting company does not require owning a data center, as the hosting provider takes care of that aspect. However, there are several prerequisites to starting your own web hosting business.

Final: How To Start A Web Hosting Business

  • Business plan - One important aspect is to have a well-defined business plan that outlines the type of services you want to offer and how you want to offer them. A website is also crucial as it allows potential customers to find you and see your offerings, and decide to choose you as their provider.
  • White-label feature - Having a white-label feature on the plans you purchase enables you to rebrand the hosting provider’s services with your own brand and logo.
  • Billing and Automation platform - Having a WHMCS system that automates orders, billing, payments, create web hosting packages and also helps you manage support tickets. And having a WHM tool to create and manage client’s cPanel accounts. With all these in place, you will have a solid foundation to start and run a successful web hosting business.

What is Reseller Hosting?

Reseller Hosting is a type of web hosting service that allows individuals or companies to rebrand and resell hosting services under their own brand name. In a reseller hosting business, resellers do not need to own the physical equipment but may need technical expertise to run a web hosting business and provide support to clients. In essence, reseller hosting allows you to build a web hosting company from scratch.

As of 2021, there were over 330,000 web hosting providers around the world, many of which were resellers starting on a small scale. With the increasing demand for web hosting services, it is likely that the number of providers, especially resellers, has grown even more in the past two years.

Benefits of reseller hosting

  • The ability to start a web hosting business with less technical expertise, as reseller hosting programs often have developed hosting infrastructure and automation.
  • The ability to offer clients a wider range of services, as resellers can bundle web hosting with other services such as domain registration and website design.
  • Increased flexibility, as resellers can customize their pricing and package offerings to meet the needs of their clients.
  • Potential for increased revenue, as resellers can mark up the cost of the hosting services they resell.
  • The ability to offer customer support to clients, even if the parent hosting provider’s customer support is unavailable.

Curious how much reseller hosting plans cost? We’ve compared the Reseller Hosting Price of the top 20 Reseller Hosting Providers

Verpex: The Best Reseller Hosting
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Start a Web Hosting Business – A Step-By-Step Plan

Starting a web hosting business is an exciting and rewarding opportunity! It may have its challenges, but by following a unique step-by-step plan, you can set yourself up for success and stand out among the many hosting companies out there.

Are you ready to learn how to start a web hosting business as a reseller? Here’s our comprehensive step-by-step plan on how to successfully start and grow in the web hosting business:

1. Understand Your Goals

Web hosting businesses can be profitable, but it’s important to remember that the key to success is having a clear plan in place. By defining your goals and understanding what it takes to achieve them, you’ll be able to make informed decisions and plan ahead rather than jumping into the business blindly.

Whether your goal is to earn more profit, offer a one-stop shop for your clients, or simply start a side hustle, having a definite purpose will make it easier for you to navigate the industry. So take the time to think about what you want to achieve, and let’s get started on building a successful reseller hosting business together!

2. Find Your Target Audience

At this stage, make sure you have a goal to attain. Who is your target audience, and where and how can you convince them to trust you as their web hosting company? If you are a web designer or web developer or have an existing business, you can upsell your service to your client after helping them develop and design their websites.

You can start a web hosting business without offering initial services; your target audience could be individuals, bloggers, web designers, web developers, professionals, startups, business owners, or anyone who needs a website. An effective strategy for identifying your target market is to choose an under-served niche and concentrate your efforts there, allowing you to generate substantial revenue in the early stages of your business.

3. Competitor Analysis

To stand out in the competitive market of web hosting providers, it’s important to study your competitors and find ways to differentiate your services and offerings. By identifying areas where your competitors are lacking, you can fill the gap and provide a solution to the audience’s pain points, which can help you grow your business quickly. To do this, review your competitors’ business practices, identify their weaknesses, and create unique services and hosting plans that address these issues.

4. Branding 101: An Important Element

Choosing a unique and exclusive brand name is crucial before starting your business as it will live rent-free in the minds of your customers. It should be creative, easy to remember, and reflect your business’s niche and values. To avoid legal issues, ensure your business name is not similar to that of any competitors.

Final: How To Start A Web Hosting Business

5. Making a Website

In this step, the primary objective is to choose and buy a hosting plan and build your business website. This includes obtaining a domain name and hosting, as well as adding important pages like About Us, Contact Us, and Privacy Policy. To register the domain name, it is recommended to use the business name as the domain name. In case it is not available, choose a creative and easy-to-remember URL/domain name. Additionally, aim to create an attractive website that is easy to navigate. To ensure the security of customer information, be sure to include an SSL certificate.

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6. Choosing The Right Host For Your Reseller Hosting

When building a website or starting a web hosting business, one of the most important steps is to choose a hosting provider that specializes in reseller hosting. A hosting provider is a company that stores your website’s files and makes them available to the public on the internet. To find the best reseller hosting provider for your business, you need to research and compare several options. Some things to consider when comparing hosting providers include:

  • Uptime: This is the percentage of time that your website is available to visitors. Look for a hosting provider that offers a high uptime guarantee (ideally 99.9%).
  • Customer Service: This is the level of support that the hosting provider offers to help you with any issues or questions you may have. Look for a hosting provider that offers 24/7 customer service and has a good reputation for being responsive and helpful.
  • Cost: Compare the prices of different hosting providers to see which one offers the best value for your money. However, don’t choose a provider just because it’s cheap; you need to consider other features too.
  • Bandwidth: This is the amount of data that your website can transfer to visitors. Look for a hosting provider that offers enough bandwidth to handle your website’s traffic.
  • Control Panel: Some hosting providers offer a control panel that allows you to easily manage your website. Look for a provider that offers a user-friendly control panel.
  • Disk Space: This is the amount of storage space that the hosting provider will give you for your website. Look for a provider that offers enough disk space for your website.
  • White Labeling: Some hosting providers allow you to “white label” your reseller hosting account. This means that your customers will not see the hosting provider’s name anywhere on your website. This is useful if you are building a personal brand and want to present a professional image.

It’s important to take your time and research different reseller hosting providers to find the one that best meets your needs. Try to find a provider that offers a good balance of quality service, uptime, customer service, cost, bandwidth, disk space, control panel and white labeling.

Here’s a list of our top Reseller Hosting providers

7. Buying Reseller Hosting and Making Hosting Packages

Once you have chosen a hosting provider to work with, you may want to consider buying a reseller hosting package. Reseller hosting allows you to purchase a bulk amount of hosting resources from a provider and then resell them to your own customers.

When creating hosting plans for your customers, there are a few things to keep in mind.

  • Pricing – Price your hosting plans competitively, but also be mindful of providing value to your customers. A good rule of thumb is to provide pricing that is just below your competitors while still positioning your hosting as a premium product.
  • Know your audience - Be sure to offer a range of options that cater to different types of customers, such as shared hosting, VPS hosting, and dedicated hosting.
  • Features and resources – Consider offering different storage, bandwidth, and email options, as well as control panel options.

8. Offer Diverse Payment Gateways

Offering diverse payment options, such as debit card, credit card, PayPal, and Stripe, can help increase conversions on a business website by making it easier for customers to complete their transactions. This can lead to more customers and greater overall sales. Additionally, providing multiple payment options can also increase customer trust and satisfaction.

9. Provide 24/7 Technical Help and Support

Being available 24/7 can greatly improve the customer experience and help attract more customers. Being available more than your competitors can give you an edge and set you apart in the marketplace. Along with availability, it is important to consider the type of customer service and support you want to offer.

Some reseller hosting providers include technical support and management services as part of their plans, while others may offer only basic support. It is important to consider what type of service your target market is looking for and plan accordingly. This can help ensure that you are meeting the needs of your customers and providing them with the level of support they need to be satisfied with your service.

10. Craft a Marketing Plan

Having a marketing plan is essential in order to reach potential customers and grow your business.

To maximize the impact of your marketing efforts, you can use various digital marketing channels like a blog, social media, etc. Each channel will have its own target audience, so it’s important to understand which channels are most effective for reaching your target market.

A good marketing strategy includes not only digital marketing but also traditional marketing, such as print ads, billboards, and events. Creating a well-rounded marketing plan that will help you reach your target audience and achieve your business objectives.

Final: How To Start A Web Hosting Business

Conclusion: Start Your Web Hosting Business

Learning how to start a web hosting business can be a profitable venture if done correctly. To be successful in this industry, it’s useful to:

  • Understand the common problems faced by resellers and web hosts, and to find and create solutions to address these issues.
  • Have a deep understanding of the technical requirements to run a web hosting business and a solid business plan.
  • Have a good reason for starting a web hosting business – such as filling a gap in the market or providing an additional service for your business.
  • Reach out to your target market and establish your reseller hosting brand with a good marketing plan.
  • Offer diverse payment gateways and provide 24/7 support to optimize the customer experience and help attract more customers.

By following our step-by-step plan and taking note of all relevant information and advice, you can create a successful web hosting brand that will meet the needs of your clients.

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Next Steps: What now?

Find the best reseller hosting provider today and start building your successful web hosting business.

Further reading – Useful Resources

Frequently Asked Questions

Is website hosting Profitable?

While the web hosting industry can be competitive, individuals and businesses can be successful by bringing something unique to the table and creating hosting packages that address the pain points highlighted by customers of other web hosts. However, it is important to note that in order to earn a profit, it is crucial to provide valuable service that meets the needs of clients.

What are the 3 types of web hosting?

The three main types of web hosting are shared hosting, VPS hosting and dedicated hosting.

Shared hosting is where multiple websites are hosted on the same server, and resources are shared among them. This is the most affordable and beginner-friendly option, but performance and security can be limited.

VPS (Virtual Private Server) hosting is where multiple virtual servers are created on one physical server, providing more resources and customization options compared to shared hosting. This option is suitable for small to medium-sized businesses or high-traffic websites.

Dedicated hosting is where an entire server is dedicated to a single website or client. This option offers the highest level of performance, security, and control, but it also comes at a higher cost and requires more technical expertise to manage.

 

Is web hosting a business?

Yes, web hosting is a business that allows individuals or companies to rent or own servers that serve as storage space for client websites, making them accessible over the internet. As a web host, you are providing a service to other businesses and individuals by maintaining and managing the servers, ensuring they are secure and always online, and providing technical support to your clients. But as a reseller starting on a small scale, you don’t need to worry about the management of the server as it is typically handled by the parent host.

How do I set up a web hosting business?

Setting up a web hosting business requires following a step-by-step plan which includes:

– Having a clear business goal and target audience in mind.

– Choosing a brand name and building a professional website.

– Selecting a reliable hosting provider that meets your needs.

– Allowing diverse payment gateways for customers’ convenience.

– Providing 24/7 customer support to ensure customer satisfaction.

– Implementing a unique marketing plan to attract prospective customers.

It’s important to have a clear understanding of the web hosting industry and research the competition to differentiate your business.

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