Web hosting is a booming business in this era of technology. Websites have become a necessity and the best way for your customers to find you online.
Going into the web hosting business might sound like a daunting task whether you’re seeking to build your own web hosting business or want to add a revenue stream. However, it is a great way to make money recurrently since you get paid monthly or annually. Since the large companies can do web hosting, you can choose to be an affiliate marketer or a reseller. This means that you don’t have to maintain a data center or hire engineers to maintain one.
To sell web hosting, brand your business, choose a reliable web hosting partner, promote your business, set your prices, and offer support to your customers.
Who is a reseller?
Starting a web hosting business from scratch is not easy. The cost of building and maintaining the infrastructure is too high especially if you don’t have enough customers. Therefore, it’s best to be a web hosting reseller. You buy hosting services with larger disk space & bandwidth in bulk at a discount from a web hosting company and then resell them to your customers. Depending on the number of customers you have, you can buy enough resources and avoid running into losses.
As a reseller, you then create different packages and sell with additional services such as emails, domains, CDN, SSL, etc. This bundling not only creates customer loyalty but also significantly increases your profit margins.
How to start a web reselling business
- Know your customers
The web hosting business is vast and has many players. Since you’ll be competing with thousands of big companies, find your niche first. Understand your market and how your service offering meets your preferred customer’s needs. This will help you save on marketing costs while maintaining your customer’s needs.
This is very important as it’s the image of your company. How you package your company to your potential customers is key. Your value proposition should be appealing to your clientele. Choose the right logo, colors, fonts, website, social media accounts, and email signature.
- Find a web hosting company
The next step is to find the right and reliable web hosting company as a partner. This is the most crucial aspect to consider when setting up because it’s the core of your business. Understand the product that you want to sell plus the add-ons that you plan on offering. Besides, have several customers that you intend to serve. All this helps you to decide on the amount and number of resources that you need to buy including hardware (disk space), software, and the operating system. This will help you determine the affordability of the services rendered.
When searching for a web hosting company to partner with, consider its reputation, website migration & backup services, available server locations, support system among others. Also, since most web hosting services go for about a year or more, it’s best to buy web hosting for over a year which will come at a discount. It’s not good to buy the smallest hosting package since you may need to upgrade which will cost you more.
- Build your web hosting services
Now that you have purchased web hosting services from a reseller, it’s time to set up your business and start selling. You already have an idea of what your customers’ want – the features they’re looking for and what they can pay. You’ll need a control panel to access and set up the hosting services. A Web Host Manager (WHM) allows you to create a control panel account for your clients, project & monitor the servers, transfer, or backup data.
If you provide white-label hosting, you need to add your branding including the logo to the management portals and update the nameservers. With WHM, you can easily do it by clicking on the Basic WHM setup on the menu and add your nameserver & contact information. Then scroll down and customize the cPanel interface further. The lasting thing you need to do is to create your hosting plans and allocate to the specific resources and limitations as well. On the WHM menu, click on Packages and follow the prompts.
You also need to monetize your business by determining the amount of money to charge and notify your customers when the payments are due.
You need to market the service to your potential customers and convert those leads into sales. Choose a marketing channel and carry out campaigns by advertising. You can do email marketing, social media, or direct sales.
- Customer support
A website going down is a nightmare for any business and you need to be there 24/7 to offer support. You need to have a support line for customers to reach you with their queries and issues concerning web hosting since not all your customers are tech-savvy. This grows customer loyalty because they know that you have their back at all times and they will even refer others.
|Issue||How to sell|
|How to sell web hosting||Create a strong business brand, find a reliable web hosting partner, then set up your web hosting platform complete with plans and their pricing. Promote the business to customers and set up a 24/7 support center.|
What’ the difference between an affiliate marketer and a web host reseller?
Selling web hosting services can be achieved in two ways – as an affiliate marketer or a web host reseller. An affiliate marketer is someone that works on commission for a company to sell their services and earns a commission from a sale. A reseller, on the other hand, buys web hosting services in bulk from a web hosting company and sells them to his/her customers at a profit.
Are there other ways of making money from a web hosting site?
Yes, besides just offering web hosting services, you can incorporate other services including selling of Ad space, PPC, having affiliate links, selling of sponsored posts, etc.