If you want to make money online, there are a lot of ways you can do it. In this article, we will go over one lesser-known option called reseller hosting.
But what is reseller hosting?
Reseller hosting is a business opportunity that entails buying a bundle of hosting resources and then reselling them to your own customers. Many hosting providers offer reseller hosting plans in which they offer hosting space at a wholesale price. The affordable plans allow you, as a reseller, to set your own prices and create a profit margin. This way you will make money while still offering competitive prices to your own clients.
Should you become a hosting reseller?
For those with a background in IT, reseller hosting is an ideal opportunity. If you have knowledge of networks, servers, and configuration you will have an advantage over other resellers who are starting off but need to learn the ins and outs of hosting.
On the other hand, if you are a website developer that already has its own clients, reseller hosting is the next logical step you need to take in order to increase your earnings. Your competitive advantage is that you understand your customer’s needs and requirements when it comes to hosting resources such as RAM, bandwidth, storage, and so on.
Furthermore, you will spend a lot less money promoting your hosting services since you already have clients that need websites, hence needing hosting space.
But what if you are not in either of these categories, should you become a reseller then?
The answer depends on the following questions:
- Are you willing to spend several months learning the basics of server management?
- Do you have enough time to dedicate to acquiring new knowledge and skills?
- What is your overall budget?
- What is your understanding of website creation and marketing strategies?
The first two questions are straight forward, the last two may need further clarification so can give a more accurate response. Let’s get into that clarification.
Budget
Your overall budget needs to include the reseller hosting plan, the costs associated with creating your website as well as promoting it. Reseller hosting plans vary in cost based on the provider you choose and the resources you get. Since you will be starting out, you will not need a lot of resources, hence your initial capital for the reseller plan can be around 100 dollars.
Creating your own website is a must since it will be the place where you conduct business. You can choose to build your website with a builder that makes designing your website simple and easy. This option is cheaper and less complicated in comparison to coding a website.
There are pros and cons associated with both a coded website and a website powered by a content management system or a website builder. We recommend that you go with WordPress or another user-friendly content management system. The costs vary from 100 to 500 dollars, including a domain name and additional features or plugins that you need to purchase for a fully functional website.
Last but not least, your budget should include marketing costs. You will need to promote your website with paid campaigns in order to get initial traffic. There are a lot of different strategies that you can incorporate in promoting your website. The marketing cost will depend solely on you, but as a general rule, the more the better.
It is advised to have somewhere around 500 dollars set aside for marketing purposes.
Website creation and Marketing
At this point you have a better idea of what goes into your budget. The question is are you able to create your own website and promote it without anyone’s help. If the answer is yes, you are off to a good start. If the answer is no, you will need to decide if you want to learn how to do it or hire someone else to do it for you. The answer to this depends on your free time and your budget.
Can you make significant earnings with reseller hosting?
There is a significant earning potential since the demand for hosting services is increasing with the number of websites created each day. Theoretically speaking you can make a lot of money if you approach this business opportunity seriously.
Your earnings depend on several factors:
- Number of customers you have
- Your expenses for the plan and customer acquisition
- Your profit margin
All in all, it is safe to assume that reseller hosting can generate a substantial income.
Conclusion
This article goes into the question of whether or not starting a reseller hosting business is a good idea for you. The answer depends on you. If you decide to start this business, we wish you luck!
