Reseller hosting is a hosting model, when the hosting server is rented from a hosting company in order to host third party websites. Simply speaking, you can be your own hosting company. Usually, this model is used by web designers and programmers, who want to offer their clients a complete service package.
How does reseller hosting work
Everything’s very simple:
- Reseller rents a dedicated server for hosting. More often than not — with already setup cPanel and WHM, or WHMCS.
- Reseller creates cPanel accounts for his clients.
- Clients pay reseller for hosting, reseller pays the hosting company for the server, keeping the difference.
How to become a hosting reseller
In order to become a reseller, you need to rent a dedicated server from a hosting company. Preferably, it should be a server that is suited for the task. In order to operate the server, you will also need some software — a control panel and a billing system. Unihost servers for reseller hosting already come with cPanel control panel and WHM billing system, with optional installation of WHMCS.
Alternatively, you can assemble a hosting server yourself, but supporting it on your own is difficult, especially if you also have a full-time job. Also, the expenses on electricity and Internet will be rather large — so large, in fact, that you might not break even. We will discuss it further in another article, but for now — let’s just say that it is a very bad idea.
What you need to know to become a hosting reseller
It’s great to be a reseller. But some people think that reseller does not have any responsibilities, except for actually selling hosting. That’s not true.
Reseller has to support their clients, and in order to do this, you need to know at least the basic principles of how the server works. Also, you need to know the cPanel and WHM. Neither of this is difficult, but at first you will have to read a lot of manuals.
Tips for beginner resellers
Be on call
It’s really important to stay on call (or even better, be online) 24/7 in order to solve a problem before the client runs out of patience. Even if everything is set up perfectly, stay on call. Accidents happen and their quick resolution is exactly what will build your client’s trust in you.
If you can afford that — hire a system administrator. Or at least, make a deal with a company that administers servers remotely. This will increase your chance to solve problems quickly and not lose any clients. Also, make sure that your hosting company’s tech support also works 24/7. Sometimes accidents happen on their side.
Invent a unique selling proposition. You will have to compete not only with other hosting companies, but also with your own hosting company. So either drop the price down — which is a good option if all you need is to keep your clients for other services — or find an advantage that will outweigh the cost.
Would it be interesting for you to try yourself in reselling? Or maybe you have already tried and what to share your experience? Leave us a comment.
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