Web hosting services where an individual or company purchases hosting resources from a web hosting provider and then resells them to their customers are known as reselling hosting.
In essence, the reseller acts as a middleman between the hosting provider and the end users. Here's a breakdown of how it typically works.
Choose a hosting plan
The reseller chooses a plan from a hosting provider. These plans usually offer a specific amount of server resources, such as bandwidth, disk space, and the ability to host a certain number of websites.
When they select a plan, they consider the needs of their potential customers and ensure that the resources provided are sufficient to meet their requirements. Additionally, they check if the plan allows them to upgrade resources as their business grows easily.
Consider scalability
The best reseller plans offer scalability. As a business's customer base expands, it may need to accommodate more websites or allocate additional resources to clients. Having the flexibility to scale up easily without service interruptions is essential for business growth.
Customize and brand your hosting plans
The reseller can often customize the hosting plans they offer to their customers. They can set their own pricing, create different hosting packages, and even brand the hosting services with their own company name and logo. This allows them to establish their own hosting business identity.
Manage customer accounts
The reseller is responsible for managing their customer accounts. This includes creating and configuring hosting accounts for their customers, providing them with login details, and offering customer support. Some hosting providers offer reseller-specific tools and control panels to make these tasks easier.
Provide adequate technical support
While the reseller handles customer support, they may also turn to the hosting provider for technical assistance. In case of server issues or infrastructure maintenance, the hosting provider typically supports the reseller by managing the backend operations.
Ideally, 24/7 customer support will be offered through various channels like live chat, email, or phone. Prompt and knowledgeable support is essential when assisting customers with any hosting-related issues.
Billing and invoicing
The reseller is responsible for billing their customers and collecting payments. They can set their own pricing and payment terms, and they often have the flexibility to create their own billing cycles and payment methods.
Price formation
To set prices, analyze your costs, including the hosting plan cost, server maintenance fees, technical support expenses, software licenses, etc. This analysis will help you understand your minimum pricing threshold to cover expenses and generate profit.
Do market research to gain insights into the pricing strategies of other reseller hosting providers. Look at the pricing structures and packages offered by your competitors. Consider their value, such as server resources, features, and customer support, and compare it with your offerings.
Target audience
Different customer segments may have varying budgets and expectations. Consider whether you are targeting individuals, small businesses, or enterprise-level customers. Align your pricing with the value you offer and what your target group is willing to pay.
Determine if you can offer additional value-added services along with hosting, such as domain registration, SSL certificates, website builders, or backup services. These extra services can be priced separately or bundled with your hosting packages to enhance the perceived value and justify higher pricing.
Security and backups
Check if the hosting plan includes more advanced security features, such as firewalls and malware scanning. These features help protect your customers' websites and data, giving them peace of mind.
Final thoughts on the pluses of reselling hosting
Reselling hosting is an opportunity for entrepreneurs or businesses to start their own hosting business without having to invest in expensive infrastructure or server management. It allows them to focus on sales, customer support, and building their brand while relying on the hosting provider for the technical aspects of the service.