What exactly is Reseller Hosting?

In reseller hosting, an individual or a company can purchase hosting services in large quantities from a more popular hosting provider. They then sell these services to their own clients, commonly but not compulsorily, under their own labels. This is useful to the entrepreneur or business interested in entering the market but does not want to invest in the necessary infrastructure.

How Does Reseller Hosting Work?

This process commences with the reseller buying a hosting package from a more established hosting company, sometimes called the parent hosting company.

This package is linked with a certain level of server resources, including

- Disk space

- Bandwidth

- Email accounts

- Domain hosting

- Databases

After the reseller has obtained the package, they portion out these resources and sell them to clients as distinct hosting packages. The reseller can decide on the prices of the hosting services, package their services in as many ways as they wish and even re-label the services to be their own. The parent hosting company provides the backend infrastructure and handles:

- Server maintenance

- Security

- Updates

Thus, it allows the reseller to focus on customer acquisition and support.

Key Features of Reseller Hosting

White Label Branding

White labelling implies that the reseller of the hosting services can sell the services under their company name. At the same time, there is no indication of the parent hosting company, making it seem like a different hosting company.

Control Panel

Reseller hosting packages typically include access to a control panel,  such as cPanel/WHM (Web Host Manager) or Plesk. These control panels allow resellers to:

- Manage their hosting accounts

- Create and manage client accounts

- Allocate resources

Billing Software

Many reseller hosting packages come with integrated billing software, such as WHMCS (Web Host Manager Complete Solution), which: 

- Automates the billing process

- Handles customer invoices

- Manages support tickets

Technical Support

While resellers are responsible for supporting their customers, they can usually rely on the parent hosting provider for backend technical support. This ensures experienced professionals handle server performance, security, and uptime issues.

Scalability

Reseller hosting is scalable. As the reseller’s customer base grows, they can purchase additional resources from the parent hosting company to accommodate more clients and larger websites.

Benefits of Reseller Hosting

Low Start-Up Cost

Entering the web hosting market as a reseller requires minimal upfront investment compared to setting up a full-fledged hosting operation. The parent hosting provider takes care of the expensive and complex infrastructure. Thus allowing the reseller to focus on marketing and customer service.

Recurring Revenue

Hosting services are typically sold on a subscription basis. Thus providing a steady and recurring revenue stream. As customers pay monthly or annually, resellers can build a predictable income.

Brand Building

Reseller hosting enables individuals and other companies to establish their own brands in the hosting business. By providing reliable service and quality support, resellers can also build a reputation and regular clientele base.

Focus on Business Growth

Since the parent hosting provider handles the technical aspects of server management, resellers can concentrate on growing their business. This includes: 

- Marketing their services

- Acquiring new customers

- Providing support

Challenges of Reseller Hosting

Customer Support Responsibility

Resellers are responsible for providing first-line customer support. This means: 

- Handling inquiries

- Troubleshooting common issues

- Ensuring customer satisfaction

While the parent hosting company may provide backend support, the reseller is their customers' primary point of contact.

Resource Management

Efficiently managing the allocated resources to avoid overselling is crucial. Resellers must ensure they do not exceed the resources the parent hosting company provides. It can lead to service disruptions.

Competition

The web hosting market is highly competitive. Resellers need to differentiate themselves through the following: 

- Unique selling propositions

- Competitive pricing

- Superior customer service

To Sum it Up!

Reseller hosting is an exciting business venture for those who would like to embark on the web hosting business with little capital or risks involved. By using infrastructure and knowledge of a more robust hosting provider, the resellers can:

- Offer their own branded hosting services

- Build a steady stream of recurring revenue

- Focus on growing their business

However, it also requires a commitment to customer support and effective resource management to ensure success in a competitive industry.