Reseller hosting allows you to sub-let web hosting space. The main host grants you a chunk of disk bandwidth and space which you can market as you want. The prices are not dictated by the host, nor do you have to use their brand on your business venture. Essentially, you can start up a business of web hosting of your own.
There are a couple of reasons to engage in resell hosting:
- Launching a new business venture on your own
- To set up websites for friends and family
- Adding web hosting as an additional revenue stream to your current business venture.
What are the Reseller Hosting Options?
Primarily reseller hosting is targeted at web designers, developers and agencies who are driven by the desire to acquire their private server space that will also serve their clients. It also keep the shared hosting benefits yet allows the user to manage multiple web accounts using a single control panel. The servers are taken care of by the hosting companies leaving you to do what you excel at.
Resellers are usually web consultants like web designers, developers and designers or companies involved in system-integration. For them, Web hosting is an additional service that goes together with their core online business.
What are the Benefits of Reseller Web Hosting?
The main reseller web hosting benefit is that it leads among the cheapest methods of buying storage space, bandwidth and processing power if you are hosting multiple clients. This is a venture that calls for extremely low initial investment on your part
Other advantages are related to scalability and that this hosting solution often comes with software for billing, domain reselling, auto installers, while it require minimal maintenance by the client.
Most providers of reseller hosting often offer discounts to the reseller starting at 50% on the reseller hosting account, which makes it a very profitable deal. It means that as a reseller you can offer deals that are as generous as the principal hosting companies themselves, yet you remain in charge of what you require for your business.
As a reseller, usually you are not in charge of web server maintaining services or other responsibilities that are maintenance related. In the occasion of technical problems like server access or downtime hitches, the responsibility goes to the dedicated server owner, the web host.
Generally, as a web hosting reseller you can set up your web hosting company and begin selling hosting plans under your personal/company brand name which is an excellent opportunity of building a complete web development and design brand.
Does Reseller Web Hosting Come with Any Disadvantages?
Reseller web hosting typically does not offer the granular and comprehensive control that you would get from a dedicated hosting solution. This could turn out to be disadvantage or roadblock in specific scenarios, but not all the time as the typical reseller simply wants to own services, yet lacks the time or knowledge to manage all the finer hosting details.
Usually reseller hosting calls for a long-term contract/agreement so that you can secure the lowest possible bargains in terms of prices and hence tend to be rather inflexible. This could be a major constraint if the business shrinks or grows unexpectedly. In case you need additional services not covered by the current agreement, you may have to pay some extra fees, thus losing the cost-effectiveness benefit.
Other Factors worth Considering?
Solutions offered by reseller hosting are very scalable and could be done at costs that are quite low, although that may be entirely dependent on the type of contract. Most are flexible to accommodate you as your business grows, with both long and short-term contracts. The features are also quite flexible to meet your diverse needs. Some even come with money back guarantees in case you feel the services offered don’t meet your expectations.
As you look at your reseller hosting options, it is very important to carefully read the fine print in the agreement, especially for a long-term contract. Also important is knowing how much data storage and bandwidth is allowed. Watch out for marketing claims talking about unlimited bandwidth, as typically such plans come with vague conditions like “fair usage limits” or something similar to that.
Lots of providers also tend to place limit on other features like the number of database connections you can make during a specific time period. To be honest, unlimited storage and bandwidth is not really feasible, and a time could come where the hosting company will or terminate change the agreement.
Who is best Suited for Reseller Web Hosting?
The most common reseller web hosting end-user is the individual website designer/developer with multiple clients and who wants to gather their services under a single brand. This approach also works very well for lots of small businesses. As a development or design freelancer, you can manage all your clients from a single platform leaving the hosting provider to deal with technical issues and handle server maintenance.
If you are running a small business and you lack your own technical experts, it is possible to take advantage of reseller hosting as part of your services. The majority of businesses require a business plan and capital, but as an independent web developer you can venture into this business with minimal capital as reseller hosting plans are available at a price that is relatively low. The subscription cost to your hosting provider can be recovered easily through a couple of website reseller clients.
As a small business owner or web developer, it makes lots of sense to use reseller web hosting if you are experiencing limitations on your resources and want create a brand offering complete hosting and development solutions.
Reseller hosting options can in addition be good in case you happen to be web designer operating multiple websites and you want to sell off chunks of storage and bandwidth to some of your clients for whom you already have set up websites. Under such situations, you would be taking full advantage of bulk pricing and you could actually completely offset all your personal costs.