Tutorial How To Earn Extra Income By Selling Web Hosting

Zirkon Kalti

Content Writer
Selling web hosting services is a great way to earn some extra income. Starting your own web hosting business from the scratch is not an easy task as there are a lot of equipments and hardware you need to buy. You also have to hire people to supervise your server and handle the customers' queries. A cheaper way of entering into this field is to rent the server from a web hosting company. If you want to make money selling hosting, you need to get either a reseller or dedicated hosting. Reseller hosting is much cheaper compared to dedicated hosting but it offers lesser resources.

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Choosing Between a Reseller Hosting or Dedicated Hosting


With a reseller hosting, the team at the web hosting company will handle the routine work of managing your server such as install updates, backup, install software and etc. If you choose a dedicated hosting, you will have to appoint your staff to run the server. If you don't have any staff to manage the server, you can buy a fully managed dedicated hosting and let the team at the web hosting company manage the server.

Creating Hosting Accounts via the Control Panel

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Most reseller hosting accounts come with a free WHM or cPanel control panel. The control panel of the reseller/dedicated hosting has everything you need to start your web hosting business. You will be able to set up individual accounts for your clients from your control panel. From your control panel, you will get an overview on the activities in your clients' accounts. You will be able to brand your hosting company with your own brand name instead of making references to the parent web hosting company.

All Your Customers' Queries Will Be Handled by The Web Hosting Company

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You don't have to worry when you encounter problem with the server as the technical support department can help you to resolve them. If your customer complain about having problem with the hosting, you can forward it to the customer support department of your web hosting company.

Decide on the Hosting Plans and Set a Price Level

Before selling the hosting services, you must first decide what types of hosting plans you want to offer. You can create the hosting plans based on the amount of resources in the reseller/dedicated hosting plans. When deciding on the plans and pricing, you can take a look at the competitors' sites. The plans you create must be competitive. The prices you set for the plans must be fair. After you have outlined the plans, you can create the different packages via the control panel. Most web hosting providers will let you keep the full profit from selling the web hosting services. Some providers may ask you for commissions.

Extras

You can use a billing software such as WHMCS to manage the orders of your customers. The WHMCS billing software should be included in the reseller hosting plan. Before launching your web hosting services, don't forget to post the Terms of Service and Acceptable Usage. Besides, you should also set up the customer support system and create a welcome email for new signups.

Promote Your Web Hosting Business

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After you have set up your web hosting business, make sure you promote it. You can advertise your business with advertising companies such as Google Adwords. To succeed in Adwords advertising, make sure you do research on cost effective keywords so that you won't lose a lot of money on keywords that don't convert into sales. Apart from online advertising, you can also promote your web hosting services at an internet marketing forum.

Choosing a Good Reseller Hosting Plans

In order for your customers' sites to have high uptime, you must select a good reseller web hosting plan. To find a good reseller hosting plan, make sure you read reviews on different reseller hosting companies written by real customers or expert reviewers. The web hosting forum is the best place for you to post your question and get suggestions from experienced members on a list of the most reliable reseller hosting companies. The reseller hosting plan should be backed with at least a 30 days money back guarantee so that you can get your refund and sign up for another plan in case you encounter problems with it. You should do some background check on the reputation and find out the hardware they are using. It will be best if they ofer geo located servers so that your customers will get the fastest uptime.

Conclusion

In conclusion, reseller web hosting is great for people who want to make money from selling hosting. It is also suitable for web development companies who want to include it as a complementary service in their packages.
 

cheezcarls

It's Game Time!
All I can say is that you have given us another way to make money, and that is through reseller hosting. I had no idea about reseller hosting before, and I underestimate it in the first place. But I do finally realize the true potential of reseller hosting, and it has a great opportunity that we could be banking some big money if we know how to convince our customers very well. One of my friends who have reseller hosting before admitted that he made money with them, until he stopped due that he will focus on other business commitments. Thanks for this one @Zirkon Kalti. :)
 

skylimit

Content Writer
You mention good points and good for newbies like me (selling hosting business :p)
But if I actually start doing it, I might get frustrated because there are already lots of hosting businesses. We cant outrank them. People have requested me to rank on top of Google for their hosting businesses but I refused, hosting niche have lots of competition, you cant survive if you dont have access to lots of users.
 

Manish Mishra

Content Writer
I have worked with WHM environment in recent past. Its quite a simple task to create Cpanel.
The main problem arises when you have got load issues. I do not know about the others but the one i bought had gone worse and i hardly given much access to an individual users.
 

cortana

Well-Known Member
I've considered being a re-seller, but I'm really nervous about not being knowledgeable enough and I would want to make sure I'm at least half an expert before doing this!

I know enough about hosting to make sure I'm buying the right plan for my own needs, and I can help people decide that, but what happens if the customer expects me to provide tech support?

Does the actual host take care of that for us?
 
Dedicated Server Vs Cloud Server

The wisdom in your choice of DEDICATED SERVER OR a CLOUD SERVER will come from knowing what each of these server types provide. Here are few insights to help you take an informed decision. Read on...

Dedicated servers: - Offer close to metal implementation with little overhead, and they’ve been traditionally the go-to-solution for high performance demanding tasks. As the name implies, each server is dedicated privately to one client. The customer receives access to a physical server with the agreed upon hardware specifications, processing and storage, all in one unit.
• Advantages: Raw computing performance, physically isolated
• Availability: 4 cores to 24 Cores
 

Webmasterserve

Staff member
Administrator
@cortana If you are trying to venture into web hosting business by being a hosting reseller, you should only look to reputed web hosting reseller programs which offer full technical support to your customers. Ideally, you should only be responsible to do marketing, customizing your hosting packages and keeping your customers happy. The hosting providers help you create a white label business front to sell hosting to your clients as if it is your own server, but behind the scenes, all software and hardware are managed by the hosting company and good web hosting reseller programs offer full customer support to your customers directly.

It is not worth the headache to re-sell webhosting if you have to provide customer support, the margins are low and competition is too high. With data storage costs coming down when operations are scaled up, large hosting giants are dominating the market with down to earth prices for shared hosting plans. You will need to find a very specific niche or specific geography to attract and retain hosting customers.

Moreover, if you already use hosting services for your projects, you will have plenty of bandwidth and server storage unused, if your hosting plan was upgraded to reseller plan, you could host your client's websites on your reseller plan and charge them directly thus earning some extra revenue every month.
 

ellyjude

Well-Known Member
I have heard of this business idea once from a friend but did not take it seriously. Is there any way i can get to understand the business more? maybe a video tutorial or something?
 

Manish Mishra

Content Writer
I agree with the OP. It's really that easy to be a reseller of hosting and to sell hosting plans to an individuals being a reseller. I recently find a lot of hosting provider offering dirt cheap rates for hosting services.
It really gives you a chance to earn a handsome money. Definitely, all you need to know is how to work with the WHM panel and to create Cpanel for multiple accounts you are requested to create account.
 

bharath

Staff member
Long time ago I thought to open a Hosting company, but it never happened with me. It requires some knowledge to handle the server and pay fees. Never tried in reselling because of Credit Card problems and have to pay money when it required.
Few of my friends tried reselling, but when the service provider went wrong they got the bad name and the option was to close later Finding a great host would be better,
@Zirkon Kalti
Do you recommend any reseller hosting? if yes then how we should sell them in market? I have got some clients in the past, but I wasn't interested in them for building web hosting business.
 

Petesede

Well-Known Member
Reselling hosting is a pretty difficult thing to do because you are competing against your supplier. You also can end up being the middle-man for tech and customer support which can be very time consuming. I think it just comes down to being a very technical affiliate program where more than likely your supplier is very famous, and thus will be competing with you directly.
 

ellyjude

Well-Known Member
Reselling hosting is a pretty difficult thing to do because you are competing against your supplier. You also can end up being the middle-man for tech and customer support which can be very time consuming. I think it just comes down to being a very technical affiliate program where more than likely your supplier is very famous, and thus will be competing with you directly.
You have a point here @Petesede. Reselling is not profitable as before. Many people have already ventured into that business. You never know how many people are reselling from a single supplier. Do you have any online business ideas that you have tried and found to be successful? I would really like to hear them.
 

Petesede

Well-Known Member
You have a point here @Petesede. Reselling is not profitable as before. Many people have already ventured into that business. You never know how many people are reselling from a single supplier. Do you have any online business ideas that you have tried and found to be successful? I would really like to hear them.
I am not really saying reselling hosting is unprofitable, I am just warning people to remember about ´support time´ when calculating profits. There are just certain businesses where people underestimate the amount of time they will have to spend doing tech or customer support and you end up making some money, but less than minimum wage.

for me, the best way to make money is to work on something you are passionate about. Most of my money comes from a very simple website where i write health articles. I enjoy learning and teaching about health, but at the same time I enjoy putting ´me´ into my articles and do not just spit out facts that can be found anywhere. I think that is the secret. Write about what you love, and then make sure you put your own unique personality into it.

I also do OK with a few types of affiliate programs which I am not going to mention in particular, but the ones I look for are the ones where the person becomes a repeat customer, even weekly. I am not talking about amazon or buying ´items´ but there are great affiliate programs where you can make re-occuring money from a single customer you refer.
 

Oldwriter

Content Writer
I'm thinking there might be a way of reselling and making a steady income flow by offering an unique customized service.

It can be offering an “extra” regarding custom software configuration others may charge more for. Or perhaps doing consulting for your customers in the early stages of site-building up to the point they have their CMS running and then you let them add their content with the assurance you're backing them as long as they keep on hosting with you.

Another idea that has crossed my mind is developing a custom web engine that never breaks with updates.

This way you literally “set and forget” recurring paying users by coupling your offer with a 100% uptime SLA cloud provider. If the engine is modular enough you can let users self-serve by having a module for websites, another one for activating forums, for Wikis, bug trackers, shopping carts, etc. this means you'd only have to focus on the development part, never on maintenance or customer support because the user simply can't break things when you only install binaries/assemblies as opposed to PHP files the user can edit and mess with at will.

(I already mentioned PHP running on virtual machines)

User-facing simplicity sells. Many of your users might like being hosted by a web engine that is easy to operate, never breaks with upgrades, and is online 100% of the time so much they'd never consider leaving.

There are automated script installers that are very easy to install fresh software with -using only a few clicks- but are a PITA to upgrade (i.e. they break custom mods), especially when a new major version of the software arrives.

You can offer a simplified customer experience while keeping up developing tech-wise as opposed to devoting to customer support with such an setup.

As always, if you plan on making a living out of reselling hosting right-away, you might be dissapointed, but why not seeing it as something on the side or an extra to help your monthly balance? I'm sure most of us just want something manageable time-wise and don't really want (or believe!) you are guaranteed to become a millionaire with X or Y activity.

Common sense, effort and dedication is the ever-relevant advice.
 
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Lily Hardini

Content Writer
I agree with @Oldwriter that reselling hosting services is a good way to offset some of the costs of hosting your own websites. It is also good for when you are selling other services, such as web development. You can add web hosting as a nice bonus or a value added service to your clients.

Starting one as a business, however, is not quite as straightforward as signing up for a reseller hosting account. You need to provide customer support, deal with complaints (if any) and do regular maintenance. I'm not trying to scare people off or anything, but here is an actual case I came across recently:

A friend was using a reseller hosting account from a very reputable company. He did this with very little experience in running a hosting company. Everything went well, sales were good, the servers are very reliable; all good. Recently, one of his clients' website was infected by a WordPress trojan. It then quickly infected other WordPress blogs on the same server because of one simple mistake: he did not create a separate account for each client in an effort to host more websites than the plan actually allows (WHMCS insists on having the allocated disk space divided into plans, even when they are not in use, to avoid overselling).

He restored an automatically-generated backup to fix the problem, but the backup was already infected. So he restored an older one, and the problem was fixed, but the backup was from almost two weeks prior to the incident. Clients lost their blog posts and a whole series of other problems appeared.

It ended well, fortunately. He had to do a lot of things (manually restore MySQL databases, handpick media uploads, etc.) and had help from a lot of friends, but it was a clear example of how starting a web hosting business is not as simple as it seems.

Again, I'm not trying to scare anyone or imply that you shouldn't try. I'm merely pointing out that web hosting business, just like any other business, is something that must be taken seriously and with a lot of preparations.
 

amultani

Well-Known Member
I am looking for a web hosting company that accepts payment through Skrill as I have no credit card or any other payment processor to make the payments.
 

bharath

Staff member
I am looking for a web hosting company that accepts payment through Skrill as I have no credit card or any other payment processor to make the payments.
Crocweb supports Skrill for paying bills and there hosting is too good from reviews by the people. I am not hosted with them or not affiliated with them. You can check reviews in Google about them before purchasing.
There servers based in Canada as someone told here in forums so please check everything that caters to your business.
 

ellyjude

Well-Known Member
Many people are venturing into web hosting business. The rate is increasing each year and soon there will be little profit to earn in such a business. I know of 200+ people who have tried and failed in such a business. What are the tactics to keep one going in such a business?
 

bharath

Staff member
Many people are venturing into web hosting business. The rate is increasing each year and soon there will be little profit to earn in such a business. I know of 200+ people who have tried and failed in such a business. What are the tactics to keep one going in such a business?
There are no tactics to success in these hosting business. The one who is in top they are getting customers easily and the remaining small business are gone down. These is common to these small business where they can't afford to hire experienced staff.
Although this thread is for selling reselling host, so you won't be a loser in this field.
In the beginning Hosting business will be more hard to get clients because of un-trusted company and one need to patience with customers by offering great services including 24 hours support.
 

Vinaya

Well-Known Member
This is too technical for me, I may never start a web hosting business. However, it good to know that how web hosting business works, how with little knowledge and money, we can start a business. I think I am more fit with web publishing.
 
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