Is reseller hosting profitable business & worth it? 7 pros & cons

Hi, I am Praneeth.

In this blog, you will learn exactly, Is reseller hosting worth it?

Without further ado, let’s get started.

Here is a 30000-foot view of the blog.

First, let’s discuss the pros and cons of reseller hosting.

What is reseller hosting & how it works?

Reseller hosting is a type of hosting where the hosting provider rents its storage, servers, space, and bandwidth to small businesses and these small businesses sell it to users.

It works in a way that,

The one who purchases hosting from the Hosting provider is called a reseller because he is actually buying the hosting service, space from the hosting provider, and selling it to small business owners and users.

Here is a graphic image of how reseller hosting works.

7 Pros and cons of reseller hosting.

In this part, you will learn the 7 pros and cons of reseller hosting for both customers and sellers.

Let’s know the pros and cons in detail.

3 Pros:

1. Flexible plans Money.
2. Scalability.
3. start hosting business without server stuff.

Let’s learn the pros in detail.

• It is cheap for users and a great way to make a side income for resellers.

With reseller hosting, users can buy this if they want a flexible plan with a limited amount of website space and resources and not want to spend money on things that they don’t use much.

Well, I am talking about those additional features you would get in a normal hosting plan which you don’t need.

Interestingly with reseller hosting plans, you can get the best hosting solution for your website at cheap prices with limited features that it is enough for your website.

With resellers, the advantage of reseller hosting is that you being the reseller of the hosting have complete control over the package of the hosting such as.

1. What features you want to include.
2. Disk space for the websites of your clients
3. Amount of bandwidth.

You being the reseller can decide for yourself for the users.

With this idea, you can sell other products and services through reselling the hosting for your clients like website design if you are a website designer and make additional money through this business.

But the main way you make money as a reseller is by buying the hosting plan mainly a dedicated server or a bulk plan of small servers from the hosting company and making it into small parts, selling it to clients, and earning the margin out of it.

This is a great business idea at low initial startup costs.

By the way, you don’t need to invest much in starting the business mainly in hosting as it is not going to be much expensive.

Click here to learn more about reselling hosting plans and business.

• It is great at scalability.

Reseller hosting provides users to take control and decide how much of the website space do they want and how much bandwidth and kind of service they need to manage their website rather than being stuck in a prefixed amount of resources you get in a normal hosting plan.

With the increased growth of the business clients of the reseller hosting can increase their needs and wants of disk space and features in their plans.

With the business aspect of it,

Reseller hosting business is really very scalable.

You can always start your business small and as you grow big with more clients you can increase your package and expand your customer base.

The only thing in the world you need to worry about is the branding of your business and sales of your business.

With more features in unfixed resources and giving flexibility for clients to pick their resources and at low prices, people are more interested in these types of hosting plans.

• You can start a hosting business without worrying about technical issues.

If you ever thought of starting or owning your own web hosting business then reseller hosting is the perfect business idea for you.

The good thing about this idea is that you don’t have to worry about any technical issue of the hosting, such as,

1. Server and hosting maintenance costs.
2. Server & hosting safety and security.
3. Updates and fixes in the infrastructure.

The reason being is you are not investing money in buying servers or any infrastructure or anything.

You are just buying the existing plans of the hosting company and selling them at your own rates.

The only thing in the world you need to worry is about getting people to buy your hosting plan and managing their hosting plans and solving their problems and needs.

You don’t need to worry about the technical aspect of your hosting servers or anything.

It is all taken care of by your original hosting company.

Here are 4 cons of reseller hosting business, lets take a look.

4 Cons:

Here is a quick overview of the cons of reseller hosting.

1. You need a lot of knowledge.
2. You need to build a level of Trust through a lot of branding.
3. It is quite a Competitive.
4. Limited access to servers and largely dependent on hosting company.

Let’s know about it all in detail.

• You need a lot of knowledge.

The problem with this business is that you are actually running a hosting business.

You first get that idea into your mind.

When you are running a hosting business you as the owner of the business has to have a lot of knowledge and assume a lot of responsibility for clients.

You need to manage your client’s problems and issues with setting up the website on the hosting.

Most of the people are going to be new to creating and managing websites so you need to manage your client Cpanels.

You will have to dedicate a lot of your time to giving support and answering the questions of your customers and if you do not have a team to manage this for you, it is going to be tough.

Of course, you can charge money for that but you need to have some sort of experience and knowledge with creating and managing websites and with technical stuff like managing CPanel and FTP of the website.

Without having any knowledge in managing the database and CPanel of the websites it shows that you are not a professional one to your customers and you might end up failing in the business so it is good to have some idea.

• You need to build a level of trust through a lot of branding.

It is a lot dependent on the branding of your business in this hosting business.

In order to make money in this hosting business,

You first need to invest money in buying the hosting plans in bulk, break them into small chunks, and again invest money in advertising your brand online to reach more eyeballs.

You should also invest some money in customizing your website to look professional and business type one.

People don’t want to make transactions of money on websites that look shitty and non-professional, you know people judge a book by its cover.

It is a lot of branding and marketing is required to start seeing some people rolling into your business and helping you get more sales.

If you want to make more sales you must capture more eyeballs for a long time so that people can start trusting your business as a credible business that they can trust and rely on.

That happens through a lot of branding and marketing of the business to users.

• It is quite competitive.

The competition in this industry is cutthroat.

It is very bad.

With you starting your own web hosting company and you want people to host your site on your hosting plans among the well established hosting sites such as,

1. Siteground.
2. Bluehost.
3. Wpx hosting.

It is quite hard to move in such a competitive space.

Because it is quite a large competitive industry in the reselling hosting plan as well because the barrier to entry is low.

It is going to take a lot of time, effort, and money in experiencing the fruit of your work through sales of the hosting plans of your business.

• Limited access to servers and largely dependent on the hosting company.

With reseller hosting of course you don’t have to deal with any technical issue of the servers like security and maintenance of the servers but the problem is you are overly dependent on the hosting company.

You have no control over the servers and their configuration in the website unless you buy the dedicated server hosting plan or any premium plan from the hosting company.

Your hosting companies quality will determine the success of your business.

If the quality is bad with bad uptimes of the website, security of the website, bad speed of the website it is going to directly affect your hosting business because people think it is your hosting company.

So you are overly dependent on the hosting company for the success of your business.

And if you think of changing the hosting provider of your plans then changing and shifting your client’s existing data from the host to a new hosting provider is going to be often a difficult process.

Is reseller hosting worth it?

Reseller hosting is definitely worth it.

As a customer, you can buy plans which suit the requirements of your website.

You can choose, your own disk space, bandwidth.

It is relatively cheap than regular hosting plans you get from hosting companies.

With reseller hosting business, if you want to start a business of it,

There are few conditions here.

• If you are a web designer. or website developer.
• If you want to start your own web hosting business.
• If you want to expand the existing portfolio of your online business or you sell websites and domains for your client.

You can choose to start a reseller hosting business.

It is going to have a purpose for you as you can add this service of reselling as an addon.

Mainly if you are a web designer or a website developer.

You can start a reselling business where you can manage your client’s website in a single account by offering them everything they need to run websites at reasonable prices.

But,

If you are a normal person or a website owner you should not start a web hosting company.

It is not going to be worth it because,

• It is time-consuming.
• It is expensive.
• It is a lot of action though you can earn money passively.

It is better if you start any other business other than reselling hosting if you are just a beginner in internet marketing.

But if you are very serious about starting your own hosting business it is better to choose a reselling hosting business because it is more affordable, reliable, and scalable.

If you are interested in starting your own reselling business, click here for the best reseller hosting providers.

Ending remarks.

There you go, I have answered all the pros and cons of reseller hosting and answered exactly if reseller hosting worth it.

Comment down what do you think about reseller hosting below.

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Read my other blogs,

• Everything you need to know about web hosting.
• Everything you need to know about the domain name.
• WordPress plans compared.

I will catch you next time,

Till then, keep learning and keep growing.