The web hosting industry is growing in popularity among entrepreneurs and business owners because of the inexpensive cost and low risk involved in starting a reseller hosting company. But if you’re like many business owners, you may not understand exactly what reseller web hosting is, or how much it costs to start a reseller hosting business.
What is reseller hosting?
Reseller web hosting is an inexpensive web hosting option that involves one company renting hard drive space and bandwidth to another company, who then rents the space to third parties.
We’ll cover this in more detail further down, but for now, check out this web hosting metaphor:
There is a large office building in a great location in town. It is owned by J.P. Propertyowner (web hosting provider), and you decide to rent it from him (renting hard drive and bandwidth from the hosting provider) with the intention of opening a coworking space (renting the space and bandwidth to third parties) and making a profit.
Relating this to reseller web hosting, an established web hosting provider rents hard drive space and bandwidth to an entrepreneur or business the same way the property owner rents property to a tenant or business. The business will then rent the space and bandwidth out to third parties and make a profit from the process. You essentially become a middle man that provides web hosting to third parties.
What’s the advantage of being the middle man?
If your company starts acting as a web hosting reseller, you’re acting as middle men. But is that a good thing or a bad thing? It’s a good thing, and there are several advantages, including:
- You get to act as a hosting company.
Diversify your company, or add reseller hosting as a feature of a web hosting company you own. With this new capability to provide web hosting, you’ll be able to market and advertise those services and grow your audience through it.
- It saves you money now, and you can ramp it up later.
One of the best things about reseller web hosting is the low initial start-up cost (usually less than $100). But if you’re ready to grow the business after you’ve made profit from reseller hosting, you can always increase your capabilities and buy a VPS or Dedicated Server. Either of these server options will enable you to expand your hard drive and bandwidth capabilities (and your business).
- You can make a profit easily.
Since the web hosting provider you choose handles the servers, you’re in charge of the profits and simply managing the hosting customers you take on. This is an easy way to start making a profit from your web hosting business right away.
Selecting the right reseller hosting provider
One last thing to consider when you select a web hosting provider to rent from: the provider and their capabilities. You don’t want to start renting from a company that can’t provide adequate support to your clients–that makes you look bad! You don’t want to rent from a provider that doesn’t offer uptime or satisfaction guarantees or a site builder.
Keep these features in mind when searching for a provider for your reseller web hosting service:
- 100+ free scripts
- At least 1 site builder
- Satisfaction guarantee
- 24/7/365 awesome support
- A 99.999% uptime guarantee
- Fully managed services
Without features like these, managing your own business will be more difficult. You need to know you can offer your own customers the best possible web hosting experience before you decide to work with a company. Don’t choose the first one you see online or even the name you recognize the most–look for one with the best value, customer and tech support, and a 99.999% uptime guarantee.