A-to-Z About Reseller Hosting

Web Hosting Beginner Guides : Reseller Hosting

Reseller Hosting Services

Everyday, millions of new websites sprung out in the Internet world – You may even be one of those hunting for the right web host now. But do you know that you can not only buy a web host; you can also resell it for profit?

In fact nowadays, many web hosting customers choose to purchase reseller hosting account. What is a web hosting reseller? And why would you want to consider purchasing from these companies when you can go directly to a web host?

Before we go any further, it is good to know the basics of it. The Internet is pretty much like the real estate industry and reseller hoster is very similar to a real estate brokers. Websites are like houses. In order for a website to be accessed live on the Internet, it requires a host, a dedicated cyber location where your website files, database and important components are stored. Just like a house that needs a lot to build on. Web hosting companies sell these "lots" or spaces to website builders. What a hosting reseller does is to purchase the server resources from a larger hosting company at a whole sale price, split them into optimal sizes, and sell to their target customers. 

There are three major reasons why you should go for a web host reseller. First, the hosting is cheaper. Second, there are flexible package rates. There are rates that are suitable for every hosting need, based on web space requirements. Third, customer support is more personal. Since resellers do not tackle technical aspects, they have more time and resources to attend to your needs.

Common Ways of Hosting Reselling

In case you are wondering, here are some common ways how a web hosting can be "resold":

  • An affiliated arrangement where the reseller places his host’s website in his website as an effort to “sell” the services or the products of the web host to those who are interested.  The reseller is similar to a sales personal in this affiliated arrangement where the reseller will earn the commission for each successful sales.
  • The reseller has his own website setup to sell the web hosting services on behalf of the original web hosts.  Commissions are paid for every sales locked down for the web host.
  • The reseller bought the web host’s services or a huge web space at wholesale price. These services and web space will be equally divided into multiple packages before they are sold to the customers.   The reseller will be selling the services and web space with his own brand instead of those belonging to the hosting provider.

Choosing the right reseller hosting provider

Once you have decided upon the type of reselling arrangement that best suits you, you will then need to choose a suitable provider. Here is a checklist of factors to consider when choosing a provider:

Reliability Your reputation as a reseller will hinge upon the reliability of your provider. If your customer’s "mission-critical" site goes down and it needs to be dealt with urgently, for instance, you will not be well served by a provider whose policy is to respond only every 24 hours. Check your host out for reliability and speed of response to service requests.

Credit for Sale If you are acting as sales agent, you need to be sure your host has a reliable way of tracking and crediting all referrals to you. Would you prefer to be paid once for each sale, or would you prefer a residual commission arrangement, where you get paid at regular intervals so long as your customer keeps using the host’s services? Would you prefer the host to bill your customers directly, or would you prefer to bill your customers yourself and thus obtain the higher profit margin that usually comes with this? These are just a couple of ways to decide how you would like to be paid.

Scalability If you are just starting out reselling hosting services, you may want to pay for only a few domains at a time, and provide a very basic range of applications. However, as your business grows, the number of sites you service will increase and you may also need to increase the range of applications you can provide your customers. Does your host provide a relatively hassle-free way to upgrade? For instance, could you move easily from a shared server arrangement to a dedicated server without needing to change hosts?

Level of Service / Automation Required At the one extreme, your host may provide all of the technical service, support and billing for your customers. Your main job is to refer the customers to the host and collect the referral fees. At the other extreme, you may run the server and bill your customers yourself. The basic guideline as regards service and support is that the more you provide, the greater the profit margin there will be for you. Many hosts provide automation to streamline administration or to make it easier and more accessible for those who are not technically inclined. For instance, a web-based control panel may be available to help you set up email and web-based services for your customers, so you do not need to know how the underlying operating system works.


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