Is Reseller Hosting a Profitable Endeavor?
Is reseller hosting a growing trend or just a fad? Some businesses have started looking into this option as it has proven to be a worthwhile endeavor in many situations. But the question is, is reseller hosting really worth it?
That’s exactly what we’re going to cover today.
What is Reseller Hosting?
Let’s start with the basics - what is reseller hosting exactly? Ultimately, the host purchases a set amount of space and then can divvy that space up and rent it out. They may be hosting from their own server, or they may be purchasing a full amount of server space and then “subletting” that space.
Here’s where it gets interesting. The host is the go-between but basically, they are not responsible for server upkeep or maintenance. They pay the company or individual that they are purchasing server space from for that responsibility.
To break it down, there are 3 essential levels.
The owner of the server or network
The host that has full access of the space
The individuals using the extra space from the host
The reseller in this scenario is the host or the level 2 person. They are accessing the network and then they are spreading out the resource to others. The people using their resources pay them a fee.
The reseller may offer specific services to their customers like online marketing, web design, and other services.
Benefits of Reseller Hosting
Before you consider reseller hosting, you should understand the benefits and whether or not it will actually be worth your while.
There can be a lot of work that goes into web hosting. You’ve got to be able to set up and maintain the space, build data centers, bill, backup data, and more. Chances are this is not going to happen with a single individual, but rather with a company that has staff capable of backing up the requirements.
But then there is reseller hosting - where you get all the benefits without nearly as much of that work we just mentioned.
Check out some of these benefits.
From Complex to Simple
Ultimately, reseller hosting takes the complexity out of it. The original owners of the premise are the ones responsible for maintenance, security, data centers, and so on. It’s your job to get clients and to get them set up with their “space” within the network.
While you will most likely be disclosing to those clients the setup in some way, they aren’t going to really notice any differences in how things operate for the most part.
The customers pay you a fee, which should be more than enough to cover the fees you are paying to provide them with such a service. The customers get web service, you make a profit, and everyone wins.
Operating Costs Are Minimal
Since you are the host and you are already paying for a service, you won’t have extensive costs that come back to you. You’re paying the owner of the server hardware and devices to keep things secure and maintained. They get their fee from you.
This means you don’t have to worry about those details, and you don’t have to pay extra for them, either. This leaves the owners to manage things like upgrades and infrastructures. They have their own staff and costs, which are seemingly covered by what you are paying them.
Your customers get a reliable space from you and they pay you for those details to be taken care of, but you aren’t really doing anything on that end and they don’t know it. You see how the circle works here?
We touched on this already, but the end result is that you do very little work on the backend and you get paid for your efforts. The best way to explain this is to use the terminology of the leasing we mentioned earlier.
Choosing a Reseller Hosting Platform
If you decide that this is the right approach for you, you will need a platform to work through.
Here are a few tips to help with that.
Always pay attention to the details. You may think you’re getting a good deal, only to be disappointed in the end. Check out the fine print and any other documentation. Make sure you know if there are limitations or details that are going to end up hindering you in the end.
While you might be allowed an unlimited number of users, you will have a limited amount of disk space. For that reason, you need to be sure you know what type of disk space you are going to have available and how many people you can successfully serve.
Check out the price for disk space and make sure it’s going to be sufficient for a return.
You need to know you’re going to have support when something goes wrong. Will you be offering support to your customers or will they have to contact your provider? How can you make sure you and your customers are taken care of when something isn’t going right?
Be familiar with what kind of backups will be offered so you can know that detail for your customers. Daily backups are the best, and it’s a good idea to find out if this is going to cost extra or if it’s provided already.
Comprehensive Web Hosting Solutions
If you’re considering your options, Host for Web offers reseller hosting as well as several other hosting options to meet your needs. Contact us today to see what types of packages are available and let us figure out how to best help you.