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What is the web hosting reseller business model?

Ultimately, the web hosting industry is about extracting the maximum in terms of performance from the least amount of resources possible. As a result, hosting many sites on a single server or via a single hosting package is essential. In fact, you can use this technique to make profit as a web hosting reseller.

What is reseller hosting?

Simply put, reseller hosting is a practice where customers buy a hosting service from a company like to resell to their own customers. This is an easy way to start your own hosting business without having to actually buy servers or build an expensive data center.

How does resale work?

Typically, a hosting reseller purchases a block of CPU power, RAM, storage space, and bandwidth from a major web host. Then he cuts this power of servers into several lots which he resells to his customers for a nice profit.

The reseller’s business model

The classic scenario of a reseller could be a development or web design company that enters the world of resale to offer complementary services to its customers. Most web hosts that offer plans for resellers offer their customers the tools they need to publicize their plans and fine-tune the details of their plans.

Pros and cons of hosting for resellers

Reselling is a great way to make extra money online without actually having to buy server hardware. Resellers also don’t have to worry about network infrastructure, server maintenance and security. The main drawback is that reseller hosting is generally not as powerful as dedicated hosting, however in most cases it is sufficient for small sites.

Become a web host – Yes it is possible!

You have heard of shared hosting (the type of hosting that 99% of us have). You have heard of virtual private servers (VPS) and dedicated servers … probably. But have you heard of reseller hosting? It is a type of hosting that offers you not only the possibility of hosting your own sites, but also the possibility of owning a profitable business online. The purpose of this article is to explain the benefits of reseller hosting and help determine if it is a good option for you.

So … reseller hosting. What is that?

Basically, it’s pretty simple. First, you buy a reseller hosting package from a web host (basic packages typically range from $ 15 to $ 45 per month). You can then look for web hosting clients – people who themselves need a web host – to sign up for a hosting plan on your account. Your hosting account, however, is actually hosted by the host that you pay $ 15 to $ 45 per month.

It’s a bit like having an online store with your logo, but selling products from another company. And it can be very profitable. Think about it: find 10 customers and sell hosting for $ 5 a month – a very reasonable price. This means that you earn $ 50 / month while you pay, say, $ 20 to your reseller hosting provider. If you find 100 customers, it’s $ 500 a month, every month!

Don’t expect people to just sign without looking, however. You have to advertise. You need a website to present your web hosting offers. You need to offer packages, incentives (such as discounts, added value, etc.), and technical support.

Notice how I mentioned the incentives in the paragraph above? It’s more important than anything (well, customer support is close). Think about it. If you sign up with a well-known web host like, you realize that it offers tons of freebies including Google AdWords credits for advertising, a name free domain, security tools, or website templates for example. Therefore, if your potential customer can register with one of these providers and receive it all, why would they go and register with you? The answer is simple: your incentives should be attractive.

Also, as I mentioned, you can kill two birds with one stone. Since you provide web hosting, of course, you are also able to take advantage of it yourself for your personal hosting needs.

So, I just gave you a fair amount of information, and you might need to read it all over and do some more research before you get started. Basically, what you just read summarizes what a web hosting reseller is and the benefits to you as a person who is interested in starting an online business project, while still being able to host its own sites.

To finish, just a little advice: do not choose a reseller hosting package without carefully considering your options. There are many companies that offer packages and you should try to choose the best one for your needs. Take a few days to list each person’s pros and cons, narrow your list down to a top five… top three… and from there, down to one. Don’t forget to do a quick search for all the promotional codes so maybe saving money – who doesn’t like saving a few pennies!

About the author‘s Editorial Team prides itself on bringing you the latest web hosting news and the best web hosting articles!

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DMT Web Hosting is too concerned about the health and safety of both clients and employees. Our office is closed due to countrywide lock down. You can reach us on +92 300 044 4656, +92 321 112 6660 during the lock down period. We appreciate your understanding and patience.