Reseller web hosting allows an account owner of a hosting service to rent out a portion of their disk space and bandwidth to other end users. The account owner then essentially becomes a hosting provider to these end users. Becoming a web hosting reseller can have definite proven advantages, but it can also have some major challenges for those who might not be so technically knowledgeable about web hosting. The best thing about the reseller web hosting is its availability at spectacularly nominal prices. You can easily find innumerable hosts, offering cheap reseller web hosting plans. This gives those who are interested in reseller web hosting a wide variety to choose from. Initially, it was quite frustrating since you had to purchase a full web space to start up an online business. High costs were an added disadvantage. With reseller hosting one is enabled to buy a portion of web space from a hosting company.
1. Reduced costs
Web hosting resellers can benefit from lower costs for their own hosting accounts, so if you have a number of websites that you manage, you can make some significant cost savings.
2. Unlimited domain hosting
With reseller plans you can host as many domains as you can sell. A number of shared hosting plans still only allow for a single domain, so this can be a big bonus with reseller web hosting.
3. It can be lucrative
Reseller web hosting can be a lucrative way to make a living, and can be great for entrepreneurs who are thinking of starting their own business as it’s relatively easy to get set up and you don’t need lots of capital up front.
4. You can make money from something you’re interested in
There is nothing better than working on something that you are passionate about, and there is no question that there is the potential to make good money from reselling web hosting. So if you have a genuine interest in web hosting and know a bit about it, it can be a rewarding area.
1. It’s a 24-hour a day industry
Web hosting is fast-paced, and as such is not always an ideal industry for people looking to set up a part-time business. You often need to be on call at any time of day to deal with customer queries and issues.
2. You may need to REALLY rely on your web hosting provider
As you are unlikely to have as much technical knowledge as a web hosting company, as a reseller you may feel like you rely a huge amount on your ‘upstream’ hosting provider.
3. High barriers to switching
You may begin to feel locked in to your upstream hosting provider, since it is a major exercise switching over to a new web host when you have a large number of clients.
4. Lots of competition
Reseller web hosting is without question a highly competitive industry, and you have to be on your game to do well at it. However, this does mean that it can be a profitable market.
Reselling web hosting can be a good way to add value to an existing business. If you have a web design or development business, for example, you can seamlessly add hosting to your services, and increase the price of your original sales package. Or you can advertise it as a free extension, and simply adjust the pricing of your core offering upwards to compensate.