The key to thriving in the highly competitive landscape of web development or digital services might lie in a game-changer … reseller hosting! Learn what reseller hosting is, how it works, and why it should be an integral part of your profit-boosting strategy.
If you run your own web development business or digital agency or plan to start one (tip: see our guide on launching a successful web development business), you may want to think about ways to generate recurring revenue from your existing client base.
One great way to generate regular income for your business is to offer clients website care and maintenance services. Another is reseller hosting.
Reseller hosting can be confusing for some. This guide will help to eliminate any confusion. We’ll cover what reseller hosting is, how it works, and the best, easiest, and fastest way to get started.
Here are all the areas we’ll be covering:
Let’s get right into it…
Why Resell Hosting?
With more businesses going online to expand their reach and remain competitive in the global digital economy, the demand for websites just keeps increasing.
According to G2.com, the world’s largest and most trusted software marketplace, the web hosting industry has consistently outperformed analysts’ predictions for annual growth and revenue.
If your services involve building websites for clients, a major part of your business will be setting up and configuring web hosting and domains, so … why not have them buy from you?
What is Reseller Hosting?
Setting up and running web hosting and domain registration services is complex and astronomically expensive. In fact, it’s an impractical undertaking, even for large agencies.
Setting up and providing a web hosting service, for example, requires owning and operating the servers and infrastructure required to host websites. It also involves providing storage space, server resources, and network connectivity to ensure websites remain accessible 24/7.
And becoming a domain registrar requires going through accreditation processes and proving your technical readiness to perform all the necessary administration and compliance processes associated with registering domain names and following accurate and secure protocols.
To maximize your profitability and minimize your risks and expenses, the smarter, cheaper, and easier way is to use external hosting providers and domain registrars for their secure infrastructure, maintenance, and administration systems, so you can focus on growing your web development services business.
Reseller hosting (and domain reselling) are unique services that can empower you to offer web hosting solutions (and domain registration/renewals) to your clients and share in the profit.
Instead of managing your own servers, becoming a reseller allows you to purchase server resources in bulk from a hosting provider and then redistribute (i.e. resell) these to your own clients.
This not only allows you to provide a comprehensive solution encompassing website development and hosting services, but it also gives you the opportunity to create recurring income.
As a web developer or digital agency, then, you can earn money from hosting and domain names by referring clients to web hosts and domain name registrars by becoming either an affiliate or a reseller of their services.
Reseller vs Affiliate – Differences Explained
An affiliate is essentially someone who introduces customers to a business via their website, email, banner ad, etc., using a special link encoded with a unique trackable affiliate ID. If a sale occurs, they receive a commission after a certain amount of time has elapsed (to cover money-back guarantee periods, processing of payment accounts, etc.)
A reseller, on the other hand, can integrate the hosting provider’s product or service into their business, add a markup to the customer’s cost of purchasing these products or services, and have more control over areas like pricing and profit margins, product naming, payment terms, etc.,
Also, depending on the type of reseller hosting, you can resell another company’s services under your own brand name and on your own website.
Different Types of Reseller Hosting
Now that you understand the basic difference between earning a sales commission by referring someone to a hosting company (affiliate) and reselling their hosting, let’s take a brief look at the different types of reseller hosting available:
1. Traditional Reseller Hosting
With traditional reseller hosting, you buy a chunk of server space and allocate it to your clients. Even if you sell it under your brand, your clients can generally tell that you are the middle agent in the deal.
2. White Label Reseller Hosting
With white label reseller hosting, you can rebadge and sell the hosting service as your own without revealing the original hosting provider to your clients.
3. Cloud Reseller Hosting
Cloud reseller hosting lets you resell hosting on cloud infrastructure with flexibility and scalability.
4. VPS Reseller Hosting
Virtual Private Server (VPS) reseller hosting lets you provide clients with services with dedicated resources for enhanced performance and control.
5. Shared Reseller Hosting
Resell shared hosting plans with multiple users on the same server.
Note: While this type of reseller hosting allows you to offer cost-effective hosting solutions for small websites, we don’t recommend it, as there are potentially inherent risks that you have no control over.
For example, if another site being hosted on your shared server cause the server to go down, all sites on that server will also be affected.
If you are considering shared reseller hosting for cost reasons, a better option would be to offer your clients inexpensive hosting on WPMU DEV’s Quantum plans, which provide more benefits to small websites, including compartmentalized hosting with their own dedicated IP address.
Now that you understand what reseller hosting is and the different types of reseller hosting available, let’s look at the benefits of becoming a reseller.
Reseller Basics – Benefits of Reselling Web Hosting and Domains
Choosing to resell web hosting and domains rather than starting your own hosting company or setting up a domain registrar business from scratch offers several advantages to web developers and digital service agencies:
- Low Startup Costs: Reselling allows you to enter the web hosting and domain market with minimal to no upfront investment. Instead of building and maintaining your own infrastructure, you simply leverage an established hosting and domain provider’s resources and focus on improving your own sales and customer service processes.
- Time Efficiency: As discussed earlier, setting up a hosting company or domain registrar from scratch requires significant time and technical expertise. By becoming a reseller, you can bypass the complex setup process and focus entirely on developing your services and growing your business.
- Technical Support and Maintenance: When you join a reseller program, you gain access to technical support and maintenance services provided by the hosting provider. This relieves you of the burden of managing web hosting servers, infrastructure, and software updates and having to perform all necessary domain registration admin and compliance tasks, allowing you to focus all of your time, efforts, and resources on servicing your clients.
- Established Reputation: If you decide not to whitelabel the services and market these under your own brand, then partnering with a reputable hosting provider means you can leverage their brand reputation and reliability. This can help to instill trust and confidence in your potential customers and help you attract new clients more easily.
How Reseller Hosting Works
A reseller hosting provider acts as the middle agent between companies that own and manage the hosting technology and users looking for reliable hosting for their businesses and websites.
The key role of a hosting reseller is to provide users with access to the following:
- Server Management – Interfacing with the hosting providers that own and manage the servers, hardware, and data centers so users don’t have to worry about the technical aspects of server maintenance, security, and uptime.
- Technical Support – Providing users with technical support when they encounter problems with their hosting services, ensuring that any server-related issues are resolved quickly.
- Scalability – Offering users scalable solutions to easily accommodate their growing needs. This includes helping users upgrade resources like disk space, bandwidth, and RAM as their client base expands.
As a web developer, you can significantly boost your business and revenue by partnering with a reseller hosting provider that allows you to focus exclusively on your core expertise and your clients. This is done by having access to solutions that take care of everything else you need to run your business.
Let’s look at these main solutions:
Server Infrastructure and Resource Allocation
Understanding server infrastructure and resource allocation is vitally important because it affects the performance of the websites you host.
You will want to make sure that the hosting is right for your clients’ requirements and budget and provides access to sufficient server resources like CPU, RAM, and bandwidth to prevent overloading servers and ensure smooth website performance.
Another factor to consider is data center locations, as the physical location and quality of the data centers used by the hosting provider impact website speed and reliability.
White-Labeling and Branding Options
Having access to white-labeling and branding options allows you to create a consistent and professional online presence for your clients.
As a hosting reseller, you will want to rebrand the hosting services under your own company name to maintain a cohesive brand identity.
Another key factor in this area is the ability to create custom hosting plans that align with your brand’s aesthetics and services. This flexibility will enable you to provide a more tailored hosting experience for your clients.
White-labeling and branding options also give you a marketing advantage and a competitive edge by allowing you to present hosting services as your own, enhancing your credibility and trustworthiness with clients.
Billing and Customer Management
Efficient billing and customer management are critical aspects of a web developer’s business, so look for reseller hosting that offers the following:
- Billing Automation: Billing automation tools streamline the process of invoicing and payment collection. This reduces your administrative overhead.
- Client Onboarding: Look for platforms that allow you to effectively manage client accounts, making it easier to onboard new clients, set up hosting packages, and assign resources.
- Monitoring and Reporting: Having access to tools that allow you to monitor server performance and generate reports helps you keep track of your clients’ hosting usage and identify opportunities for improvement.
In summary, understanding your role in providing reliable hosting services to clients as a reseller hosting provider will allow you to focus on your core expertise in web development, build a successful hosting business, and offer comprehensive solutions to your clients.
Reseller Hosting Pricing Models
Understanding different reseller pricing models is the key to effectively pricing your products or services to align with market demands and maximize your profit potential.
Here are the main reseller pricing models and some basic examples of how to calculate your pricing using these models:
Cost-Based Pricing
Calculate all costs including server expenses, support, and overheads. Add a suitable markup for profitability.
Example: Server costs $100/month + Support costs $50/month. Markup of 30%. Total pricing: $100 + $50 + ($150 * 0.3) = $225.
Percentage-Based Pricing
Set prices based on a percentage of the hosting service cost.
Example: For a 25% profit on a $50 hosting plan, reseller price is $50 + ($50 * 0.25) = $62.50.
Tiered Pricing
Create different service tiers with varying features and prices and let your clients choose based on their needs.
Example: Basic tier at $20/month with limited features, Standard tier at $40/month with more features, Premium tier at $60/month with all features.
Competitive Pricing
Analyze market rates and set prices to compete. This may involve offering additional services or lower prices.
Example: Market average for reseller hosting is $30/month. Set pricing at $25/month with additional support to be competitive.
Bundle Pricing
Combine hosting with other services (e.g., domain, security) into a package for a single price.
Example: Basic bundle includes hosting and domain for $50/month. Premium bundle includes hosting, domain, and security for $75/month.
Who Should Consider Reseller Hosting
In addition to the general benefits discussed earlier, reseller hosting provides benefits and opportunities to businesses such as:
Web Developers and Web Designers
Including web hosting as part of your packages lets you expand your service offerings and create a one-stop-shop for your clients.
For example, you can target specific niches or industries and offer clients a comprehensive package that includes website development, hosting, and maintenance, providing expertise and reliability, and ensuring ongoing revenue from hosting fees.
By reselling hosting services to clients as a bundled offering, you can establish a steady stream of passive income to complement project-based earnings.
Agencies and Freelancers
As an agency or freelancer, you can easily scale your hosting infrastructure to accommodate the needs of multiple clients without the hassle of managing physical servers by branding and reselling hosting services as your own, diversify revenue streams by offering hosting alongside design, marketing, or development services, and centralize the management of your client accounts to simplify billing, support, and maintenance.
Also, as a reseller you will be accessing bulk discounts, enabling your business to offer competitive pricing while maintaining healthy profit margins.
Entrepreneurs, Business Owners, and Anyone Seeking Income Generation
While leveraging existing skills, resources, and client networks certainly makes it easier to build a profitable reseller hosting business, the opportunity is not confined only to web developers, designers, agencies, or freelancers.
The growing web hosting industry also provides a stable and expanding market for entrepreneurial and business-minded individuals seeking income generation opportunities.
Reseller hosting requires minimal upfront investment and allows you to generate a steady stream of passive income without the need for extensive technical knowledge.
The recommended approach here would be to identify underserved niches or industries and provide specialized hosting services tailored to their needs, such as providing hosting for small firms or local businesses in that niche.
You could even explore strategies like adding an affiliate program and recruiting affiliates to refer clients to your services.
What You Need to Succeed As a Reseller
While you don’t need advanced technical skills to start a web hosting and domain reselling business, having a basic understanding of web hosting, domains, and internet technologies can be beneficial.
If you currently offer (or are planning to start) a web development services business, your business structure should be able to quickly and easily accommodate the provision of these additional services.
A great way to start is to choose a reputable hosting and domain provider offering a great reseller program and a platform that meets your infrastructure, pricing, features, and support needs.
WPMU DEV – The Ideal Reseller Platform or Your Business
Choosing the right hosting and domain provider is crucial for the success of your reselling activities, so it’s important to research your options.
As a leader in the managed WordPress web hosting space, WPMU DEV has developed a solid, well-supported, and fully automated whitelabel reseller platform that provides you with an instant revenue add-on where you can resell hosting and domains under your own brand for maximum profit, with little effort.
Here are some of the great reasons to partner with WPMU DEV to resell web hosting and domains:
1. Our All-In-One WordPress Platform Provides Everything You Need
At WPMU DEV, our focus is to help WordPress web developers grow their business successfully.
We provide a seamlessly integrated end-to-end platform you can use to build, launch, and grow your web development business.
The platform provides everything you need under one roof:
- Blazing-fast hosting – resell the best hosting available, with all the hosting features your clients need, and additional services included, such as downtime monitoring, broken link checking, CDN, emails, and more.
- The Hub – manage unlimited sites from one central dashboard and provide your clients access to their accounts with a fully-branded client portal,
- Award-winning premium plugins – provide everything your client sites need, from hardening security, improving performance, and performing automatic backups, to marketing, SEO, analytics, and more,
- Integrated client billing and management – a streamlined payment system for your business that lets you manage and bill your clients.
- Templates – offer your clients a huge selection of professionally designed and fully optimized time-saving templates that will greatly speed up their site-building process,
- Automation – keep all your clients’ sites updated, backed up, and error-free, and send them customized reports…all done automatically for you!
- And much more.
2. Award-Winning Fully Managed WordPress Web Hosting
If you’re going to resell hosting to your clients, why not give them the very best hosting available?
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Plan, build, and launch your next WP site without a hitch. Our checklist makes the process easy and repeatable.
G2.com, a leading company for trusted real user software reviews, consistently rates WPMU DEV a leader in the web hosting and managed WordPress hosting space.
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Every WPMU DEV hosting plan you resell comes with enterprise-grade hosting features already preconfigured and fine tuned for optimum performance and speed, plus options you can turn on or off to create upsell packages.
There are simply way too many great features to list here, so check out how we compare with other hosting companies.
3. Time-Saving Automation Everywhere
Imagine owning an automated vending machine that never needs restocking of products or servicing. A vending machine that can be fully set up and configured in a few clicks to deliver your clients the highest quality hosting available, fully optimized, fully managed and fully supported for you.
Let’s take this automation up a notch.
Imagine having the option to automatically set up and configure every website hosted on your own fully-branded reseller account for optimal speed, performance, security, SEO, backups, updates, downtime monitoring, emails, client reports, and client billing and invoicing.
You don’t even have to imagine this. It’s already baked into our platform and ready to go.
But WPMU DEV pushes automation even beyond hosting, website, and client billing setup.
With Reseller, you will also soon be able to instantly connect purchased domains with their websites (and have their DNS records be automatically configured without having to lift a finger), and provide your clients (and their clients) with access to white-labeled support.
Yes, with WPMU DEV Reseller, you truly can have a fully digital automated vending machine working 24/7 for you.
4. Highest Profit Margins Anywhere
Have you ever looked into how Costco, the giant wholesale company makes its money? They sell their products to members with very low profit margins and make money from the renewal of yearly membership subscriptions from their loyal customer base.
WPMU DEV operates on a very similar model. We offer our members hosting and domains almost at cost price and we let you set your own pricing on top so you can make the maximum profits as a reseller of our products.
Additionally, we charge resellers zero client billing administration fees, so you keep all of your client’s payments after the payment processor’s charges (e.g. Stripe).
5. 24/7 Expert Support That Will Never Let You Down
As mentioned earlier, trusted product review sites like G2.com consistently rate WPMU DEV as a leader in the web hosting and managed WordPress hosting space.
While we are chuffed to be recognized for our hosting and site management tool, the area where we absolutely shine above all other industry competitors is in our commitment to provide every customer with 24/7 expert support that goes above and beyond expectations.
Don’t take our word for it…check the user reviews at G2, Trustpilot, and other review sites.
As a WPMU DEV reseller, you’re not only reselling our products but our reputation, so it’s vitally important that we provide you the very best of support and help in all areas of growing your reseller business.
From onboarding you as a member to supporting your business 24/7, we employ a range of support methods, including live chat access to a global team of WordPress and hosting experts, custom-trained AI assistant, detailed product documentation, in-depth blog articles and tutorials, an active member community forum, and more.
Soon, we’ll be extending our best-in-class support to Reseller clients too! (Coming soon)
The Next Step: Set Up Your Reseller Hosting Business
As stated earlier, the web hosting industry is growing and reseller hosting presents a lucrative opportunity for a wide range of individuals and businesses looking to tap into this ever-expanding industry.
Whether you choose to bundle web hosting with your web development or design services, scale hosting operations for multiple clients, or enter the digital services industry as a side venture, reseller hosting offers a gateway to sustainable income and business growth.
If you need help choosing a hosting company to psrtner with to start your reseller hosting business, check out our comprehensive guide on how to find the best reseller hosting for your WordPress business or digital agency. It covers eight major areas to look for in a reseller hosting company that will guarantee the best fit for your agency’s needs and long-term success as a reseller.
If you are ready to start generating recurring revenue with reseller hosting, WPMU DEV’s Reseller platform provides everything you need to succeed and boost your revenue with the least amount of effort and hassle involved.
This includes:
- Award-winning discounted hosting services (and domain registrations too…coming soon!)
- End-to-end white label reselling
- Automated client billing and invoice management
- Pre-configured and optimized site templates
- Integrated site management and client portal
- Expert 24/7 support (for your clients too… coming soon!)
- And a whole lot more!
To get started immediately with Reseller, refer to our guide on how to set up your hosting reseller business.
Or, visit our Reseller page and go through our Reseller documentation to learn about all of the platform’s features and benefits.
