How To Start A Reseller Web Hosting Business From ScratchMarketing June 18th 2021
Are you planning to start your own website or business or are you planning to start reseller web hosting business? You are not alone. Research says the majority of the employed people would prefer to host their own website than work for a company.
Google “business ideas”. You’ll be amazed at the top results – freelance consultant, online teaching, bookkeeping, etc. These ideas are a full proof but might not apply to everyone.
Therefore, if your latest google search is about starting a new business, we got your back!
Ever heard of a “reseller web hosting business”? In plain words, it is a business model where you are the reseller of web hosting services. Thanks to the increased use of the internet and the rise of online businesses – the demand for web hosting services is expected to increase at an 18% CAGR from 2021-2028.
So we say, now is the best time to go the reseller web hosting business way!
Confused between various Cloud Service Providers? Read this: AWS vs Azure vs Google Cloud
What Is A Reseller Web Hosting Business?
First things first, in a reseller web hosting business, you (a reseller) pay a monthly fee to a web hosting provider to rent some web server space, repackage it according to your brand and sell it to your clients at a higher price.
In layman’s language, think of it as buying something from a wholesaler and selling it to customers at a retail price. The price difference is your profit. Thus, a traditional concept of sales and marketing but with applicability in the field of web hosting.
Why Is A Reseller Web Hosting Business Lucrative?
A traditional web hosting business requires a huge investment in buying the server, and infrastructure, setting up employees’ workspace, and systems. On the other hand, reseller web hosting eliminates all of these costs and still allows you to enjoy its benefits.
Three Reasons Why Reseller Web Hosting Business Is Lucrative:
- No Initial Investment
- Ease of Setting Up
- High Returns
Therefore, if web hosting is the field for you, the benefits will definitely outweigh. All you need is an interest in this field, a passion to not just start but also run a business.
Steps To Start A Reseller Web Hosting Business
Like any other business, a reseller has to apply all the tricks of the trade to churn out profits. You can start with a one-man army- YOU! The biggest leverage is that you are not paying for office space and salaries. On a high level, you should do your research well, set the goals and targets you want to achieve, and, most importantly, ask yourself why I am doing this?
Need more convincing and guidance? Follow this step-by-step guide to help you set up.
1. Set Relevant Business Goals
If you’ve already attempted setting up a business before, you’d know what goal setting is. For a reseller web hosting business, we suggest setting pointed business goals and defining how you’d package your services.
For instance, what all services would you sell – just hosting? Or maybe add on like SSL certificate, domain names, or even hosting consulting services for your client, etc. This will help you define a niche within hosting.
Next, define the goals in terms of customer acquisition and expected business growth. This will keep you on track.
2. Define Your Client
Once you’ve finalized your service offering, define your client/target audience. You can basically target anyone with an online business or a website, irrespective of the scale of their operations and the nature of their business. Most of the reseller hosting providers serve web developers, bloggers, online designers, online businesses, etc.
Be specific when defining your target client’s persona. This will include the client’s demography, geography, and industry. Once you know your target client, it will be easy for you to plan and structure your hosting plans tailored to the clients’ needs.
3. Choose Your Reseller Web Hosting Provider
Choosing your parent reseller web hosting provider is the MOST IMPORTANT part of your hosting business. The features you want to offer to your customers must align with what your provider is offering you. While choosing the parent hosting provider, we recommend you check:
- What do they provide – shell access or WHM panel access?
- Do they offer a free WHMCS license?
- Do they provide the option to create a custom package in the WHM panel?
- How many sites can you host in your reseller hosting?
- Do they provide the option to take the backups and restore the backup?
- Do they offer an upgrade option in case your package allocated disk or bandwidth gets used to its maximum capacity?
You should also check for white labeling options from your provider, so you can sell the services to your clients under your branding, and select the provider with at least 99.9% uptime (i.e. the percentage of time that decides the time your website remains available on the internet).
Pro tips to start your research: Check out the provider’s social media pages and online reviews. Compare the pricing models of various providers and talk to the customer support team to see if they are offering any special promotions!
Cloud Computing vs. On-Premises – Choose The Best Platform To Save Your Sensitive Information
Go that extra mile at this stage, it’ll reap benefits in the long run. We promise.
4. Get Started – Website & Branding
Choose a brand name that defines what you are trying to do. Keep it catchy and design a logo that goes well with the brand. It is the first thing that people notice about your business. So put some thought into it! In the long term, your brand defines your relationship with your clients.
Next, design a website that is straightforward, and is easy to use for your prospective clients. Have proper call-to-action buttons so that your clients can buy your services in one click. Make sure your website is secure, has an SSL certificate, and set up reliable billings systems in place.
5. Finalize Your Plans & Packages
Once you have decided on your hosting provider and bought a plan, the next logical step is to finalize your plans and prices. Make it attractive for the clients so they find value in the services you are offering, and at the same time make sure you have enough profit margin as you decided in Step 1. Convince (and offer) your clients that they are getting the best web hosting deal that they can think of!
Pro tips to plan your packages: Package your plans with an add-on like 30 mins free consultation to help with the client’s web hosting, or sell a domain name at a relatively cheaper price if the client is buying a package for hosting service.
6. Offer 24*7 Support To Your Clients
One thing we highly encourage and try our best to implement for our businesses as well is customer service. Make sure you are offering an amazing customer experience, so your clients not just only deal with you but also refer you to their network.
We can’t stress the importance of offering a good client service enough. Please don’t settle for anything less than 24*7 support to your clients.
7. Market Your Business
You’ve nailed your business plan and goals. You are all set to start selling. But how do you reach the target clients? The part that excites us the most!
For a reseller web hosting business, you have three options. One, you can opt for paid marketing options like run a paid ad campaign for your targeted clients. Two, you can organically promote your Web Hosting businesses by publishing SEO-optimized content through your website and your social media channels. Three, you can choose both paid and organic options to get the best of both worlds. If required, hire a marketing expert.
8. The X Factor (s)
Trust is of utmost importance. Make sure you have a trust seal from BBB, so it helps to instill confidence in your clients. Your clients need to know you meet all the requirements of conducting an online business. Make your trust, your X factor!
Also, understand the market needs and improve, improve, improve! Continuously analyze your competition and study their offerings. Make your offering more lucrative. For the first year, you’ll have to dedicate more time to the analysis and implementation. With time, add additional services if needed like customer support solutions, billing solutions, etc.
Find out the best Cloud Service Models of 2021 for your business: IaaS vs PaaS vs SaaS
Summary Of How To Start A Reseller Web Hosting Business From Scratch
If you’ve been meaning to start a smart business with the minimum initial investment, a reseller web hosting business is worth a shot. It is pretty straightforward to start it from the scratch. You just need to define your business goals and strategy, know who will buy from you, understand who you should buy the server space from, then package and sell the customized offerings through your website at a margin.
You can get as creative as you’d like with your plans and marketing to reach the target clients in no time. Closely study your competitors, offer your customers’ best support, and keep adding services to meet your customer needs. In a nutshell, if you enjoy web hosting, right now is the best time to start a reseller web hosting business of your own!