Type: Reseller Hosting
Cost: From $ 30, up to R $ 200 / month
Suitable for: Professionals wishing to start their own hosting company or agencies wishing to expand their services
Level of difficulty: Need to be familiar with the subject or want to learn
General evaluation: Low risk and investment with a quick return chance
Where to hire: Get to know the companies that offer Reseller Hosting
What is Reseller Hosting?
Reseller hosting is a service that allows anyone to have their own hosting company, without having to invest in equipment or servers, only marketing the services of the hosting company. The hosting is provided by the company but has its mark, thus strengthening its relationship with its clients.
In other words, we can say that in this plan the contracted disk space and bandwidth resources are used to host third-party sites, in this case, their clients’. The reseller acts as an intermediary, buying the hosting services of a company and reselling to its customers, usually for the purpose of making a profit.
This plan is usually offered by large hosting companies, whose clients become hosting resellers to other companies, usually in conjunction with web design and management services. For example, imagine that you are a web designer or web agency and have customers interested in building a website. The reseller allows you to offer, in conjunction with the creation of the website, hosting, and maintenance. You then use the infrastructure of a large hosting company that does everything else: server management, upgrades, load balancing, etc. as you focus on sales and business growth.
Typically, companies use the same shared hosting structure for reseller plans. However, to have more power and control, it is also possible to use a reseller in plans such as VPS server, cloud, and dedicated server, as long as allowed by the hosting company.
Who is the Reseller for?
Setting up a reseller hosting can be a great option for those who wish to have their own online business. When compared to a physical business, the investment in a reseller hosting is low and allows you to get a quick return if the strategy of advertizing and offering services is convincing.
As all the resources you need to have your resale are virtual, there are no expenses for renting a store, for example, much less with physical goods. Of course, you will have some expenses, the main one being the hosting service that you will resell.
See below for who else the reseller hosting is indicated:
- People who are interested in having their own web hosting company without having to deal with management work and server maintenance costs.
- Web agencies or service providers on the internet who would like to add extra revenue by selling hosting plans to their clients.
- Web designers and developers who want to host their clients in separate dashboards, but who do not need the features of a VPS or dedicated.
- People who have more than one site and want to adjust disk space and traffic resources according to each site and manage all sites through a control panel only.
How a Reseller Hosting Works
Companies offer various reseller plans, with disk space and bandwidth features that vary by plan. However, there are features that are usually included in all plans.
- The possibility of customization of the resale, so that only your brand appears (White label reseller hosting). Through the control panel, you can enter your company name and brand in the invoices you issue to your customers, giving the business a professional look.
- Ability to manage your plans and configure different accounts according to your needs.
- Reseller Domain Account, which allows you to offer domain registration to your customers.
- Possibility to offer your customers the same tools that the main company offers, such as email, control panel, additional scripts (automatic installer) and monitoring tools.
In addition, the items below are included for free in reseller plans:
- Free Support
- Free WHMCS (customer management tool, financial and customer support) for resellers on Linux.
- WHM and cPanel or another dashboard (control panel for hosting management and client sites) for resellers on Linux. In Windows resellers, the control panel is Plesk.
In cheap reseller hosting, your job is basically to support your customers, for simple situations like loss of password or some configuration in cPanel. For more technical cases, the reseller can open a call with the hosting company and intermediation between the company and its client.
Advantages of Reseller Hosting
- Feasibility to set up your own hosting company, which could be a good source of income and a complement to your current business.
- It is possible to start with a low investment, which also reduces the risk of the business.
- The possibility of offering customized hosting plans to its clients.
- It allows you to use your own brand, even reselling the hosting of another company.
- Creation of independent control panels for each of its clients.
Disadvantages of a Reseller Hosting
Like all types of hosting, reselling also has weaknesses:
- If there are problems in the resale or it goes out of time frequently, the owner of the resale loses credibility with its clients.
- If the reseller decides to change hosting company, there is an inconvenience for both the reseller and his customers, who will have to deal with that change.
- Resellers need to wait for the hosting company to fix bugs or issues that they do not have access to.
- You need to be available to meet and assist your customers with support requests.
- As a reseller, you have no influence on your hosting provider, however, you depend on it.
- You will need to be very organized with account management, finance, and backups.
What features to look for in a Reseller Hosting
The disk space provided by the reseller is one of the most important items to evaluate as it can directly affect the growth of your business. The amount of disk space will affect the number of accounts (clients) that you can resell. In addition, as the number of customers grows, you will have to provision more disk space in order to allocate new customers.
The traffic concerns the amount of data exchanged between computers accessing your website and the server where the site is hosted. This can have a significant impact depending on the type of customer you have in your reseller hosting. If you host institutional sites with low or medium traffic, you will have no problem with this issue. But it’s good to be aware of customers who have virtual stores or blogs with a lot of traffic, as they may affect other resell customers if the use is abusive.
Data Center Location
Many companies have data centers outside India. This will create a problem if the servers are in some other country because the difference in response time will be large. To give you an idea, a server located in India responds in less than 50 milliseconds if it is functioning normally. A server in the United States already responds in less than 250 milliseconds. The difference may seem great when compared side by side, but we are talking about fractions of a second, which is very little for human perception.
You should be aware if the data center is in Europe or USA. In this case, the response time may be much longer and it may be better to avoid hiring the service.
One tip: Data centers in the United States have a much lower maintenance cost than a data center in India, so resellers with servers in the US generally have more competitive prices than those with servers here in India.
Availability (server uptime)
This item relates to the amount of time the contracted service will be available, that is, accessible to you and your customers. Make sure that the reseller hosting you intend to contract offers an Uptime (server availability time) greater than 99%. Many of them offer a proportional reimbursement if this availability agreement is not fulfilled.
You will probably provide some kind of technical support for your client, so it is very important that the hosting company in which you are reselling the service can support you 24 hours a day, 7 days a week. After all, any delay in responding to a request from your customer could damage your company’s reputation.
Make sure, therefore, that the company you intend to hire offers quality technical support. The best companies offer support by phone, chat, and email (ticket). Also, check if the support is in Hindi if you do not speak English.
How to Choose the Best Reseller Hosting
Choosing the best reseller hosting is critical for the success of your hosting company, especially in the beginning, where you will depend heavily on word of mouth advertizing, the one done by your most satisfied customers. When hiring a reseller hosting, you need to ensure that your customers’ website will always be up and running and perform well within the plan you have hired. A single unhappy customer can be very damaging to your business, especially nowadays, where social networks increasingly amplify the consumer’s voice.
The most important thing when choosing a reseller hosting plan is knowing how to evaluate what you need and what you want to offer your future customers. See below the criteria that we must observe to choose the best reseller hosting.
Criteria for searching a reseller hosting provider:
- Look for a hosting company with experience in the field. Rest assured that this is a solid company with its own servers (not a reseller hosting).
- Make sure your reseller plans are compatible with the major CMSs currently in use. Many customers will hire your service to install WordPress, Magento, and other popular open source tools.
- Make sure you can resell domains in your reseller plan. Your future customers may not handle the need to register a domain in another company very well and point the DNS to your hosting. Many prefer to do everything in one place.
- Decide if you prefer to have a Linux or Windows reseller. There are significant differences between reseller hosting in these languages, ranging from the administration panel to the type of application compatible with the service. Briefly, Linux hosting is suitable for most applications (static sites and open source CMS, such as WordPress), while Windows is suitable for proprietary Microsoft languages, such as asp and .NET.
- Review the product portfolio offered by the company within the retail plan. Look for products that simplify the process of publishing and administering a website. For example: Does the company offer a Site Builder plan within the reseller plan? This type of tool works as an asset in convincing your prospect to hire your company.
- It is also important to check the control panel that will be made available to you and your customer. In Linux resellers, many companies offer cPanel, the client panel, and WHM, to the hosting dashboard. In it, you can customize the panel with your own brand. In Windows resellers, usually, the control panel is Plesk.
- Check the limit of email accounts per client. Your customer may want to create many email accounts under a single domain, so it’s important to know how far you can go in this matter.
If you already own a reseller and you plan to switch businesses, it is very important to know if the new company you intend to hire has the reseller migration service, or at least provide support for it. Unexpected issues may arise during the migration of client accounts and good support will make a lot of difference at that point.
Consider the above topics as an initial checklist, to help you choose the best reseller hosting. Other technical issues will also need to be analyzed. See here the companies that stand out most and also know what to take into consideration when deciding which resale to choose.
As we can see, some important issues need to be considered when choosing the best reseller hosting. Evaluate these issues meticulously and start your own online business now!