Is reseller business hosting profitable?
When it comes to earning money online, “reseller hosting” is considered as one of the best and unique way. People who do this business are called resellers and they act as retailers like we see in mom and pop shops. Reseller hosting is when an individual or a small company buys server space in bulk from hosting companies and starts selling it to their customers at higher price and earns commission.
Is reseller hosting profitable?
Yes, the reseller hosting business is definitely profitable. You can create a website and start selling products to your customers by re-renting it. You can easily make money with a reseller hosting business however, to make it more profitable you would need to do marketing for your business.
How does reseller hosting business works?
It’s pretty simple, you need to buy space on a server from a larger hosting provider like GoDaddy, Bluehost, Hostgator, Namecheap etc.
For example, you buy a hosting space for $100 a year and you can sell it to a customer under your business name for $150, earning $50 profit. So, before you get into this business make sure you find a good hosting reseller which is reliable.
You can read this article for more information on reseller hosting providers.
How to start a reseller hosting business?
When you purchase reseller hosting, for example from GoDaddy, it will give you a fully customizable store with all the functionality built in it. If someone has to buy a domain, they would go to the domain search section of your website and choose a domain they want to buy. Whenever your store gets a domain sale or hosting you will get commission from your reseller.
The best part is you can connect your own domain and customize your store according to your design skills. It’s just the same as shopify stores. You can build your storefront on wordpress website as well.
Apart from that you can also choose the markup, percentage, promotions and prices. that you want to sell.
For example, if you want to sell a cpanel starter account. The wholesale price is $1.14. If you want to earn 118% commission you need to sell it for $2.99. You can set that in the price section in image below. It’s easy to set a different commission rate for every product that you want to resell like I have set for Backups add on and other products in image below
Domains are used in every online business and you can sell domains in reseller as well. Below is the image from GoDaddy reseller hosting and you can set price here as well accordingly and earn commission. Below image shows wholesale price of $9.29 a year and you can sell at $12.99 a year. Your profit would be $35%
How much money can you make with a reselling hosting business?
This solely depends on how much efforts you put into this work
The top reseller of the last month gave revenue of $92,029.41 to GoDaddy and earned $26,474.96 which is a lot of money. You can also make that much money if you put hours and effort into this business. Well if you talk about anything it will take time and dedication. I also attached the top reseller earners of last month. Check it below.
Things to consider before start reseller hosting business
- This is the most important part of the blog. Before you start this business. you need to keep in mind that it’s a long term business. You are going to compete with top level companies on the internet who provide the same service as you.
- Choose a unique domain name that will match with your business, it will help you to build your own brand.
- Choose a reliable hosting provider with excellent customer service and have economical plans with great uptime( more than 99%).
- Examine your competitors to check what they are offering. Read about their service reviews on trustpilot and try to offer better service / plans. Remember, online business depends on how good you are offering than your competitors.
- Make sure the hosting provider you choose offers 100% white label support. In White label support, your hosting provider’s name remains anonymous and it will be replaced by your brand name in most cases. Your customers will see your brand name as their hosting / domain provider. This way, you can build your brand name as self-standing and independent from your hosting provider.
- Make sure to install SSL certificate on your website. This will bring trust to visitors and google will also rank your website higher when someone searches for a keyword that matches with your business.
Who can start a reseller hosting business?
Anyone can start this business provided that they are dedicated to work and take their business to the next level.
Reseller hosting business is ideal for developers who have clients and they recommend their customers to hosting providers. They can have their clients buy hosting from their reseller hosting and earn money.
| PRO’S | CON’S |
|---|---|
| Good side hustle | If company server crashes you can lose a client |
| Make’s good amount of income | Uneven margins |
| Make it full time with hard work | It takes time for this business to grow |
| Low expenses and cost |
High competition |
| Room of expansion | Takes around a month for commission to credit your account |
Takeaway
In a nutshell, you can consider it as a profitable business which you can start as a side hustle and once business grows, you can jump in as a full time reseller.
You need to work hard on SEO since you are competing with big players in the hosting industry.
Wish you best of luck, If you have any questions let me know in the comment section