Should You Get Into The Reseller Hosting Business?
If you want to make some money, especially if your main focus is a web design and/or development business, reseller hosting is a good choice for you. According to data from Statista, the global shared hosting market will reach $22 billion by 2020. And the size of the global managed hosting market is at astounding $60 billion. This gives you plenty of opportunity to get some good business in this field, and with reseller hosting plans doing this will be easy.
Reseller Hosting Business: Pros and Cons
Pros: Flexible and Profitable
The benefits of a reseller hosting business are many, but the most important of them are the profitability and ease of starting. All you need to do is to get a specialized service package from a reputable host. Then you’ll need to make some small investment into ads. You can enhance the authority of your new brand through the strength of the ‘parent host’.
Simply put, a reseller hosting business allows you to make some money for very little investment. The actual maintenance of the servers is handled by the original host. Therefore, your duties and risks are minimal.
WebHostingMedia highlights that reseller hosting business provides one a good chance to offer hosting services to their clients. Therefore, adding this business to your portfolio makes most sense for the companies that specialize in creating and managing websites. Companies like this might be able to attract more clients because their service packages already include premier hosting.
As reseller hosting packages are rather generous, the reseller itself benefits immensely because they get a lot more flexibility with the services. This kind of package is much more diverse than a regular cheap shared hosting. However, as you’ll be making money off reselling some of it, you should literally get your own hosting for free.
Being a reseller of hosting services also means that you won’t have to pay for expensive server maintenance and repairs. The maximum of your involvement in the business will be establishing a small customer support center. However, even that will be able to redirect any technical issues directly to the original host.
Cons: Limited Services
For all the flexibility you get, the main disadvantage of the reseller hosting business is that your clients don’t get much of it at all. The maximum they can count on when buying from you is a rather straightforward shared hosting deal. This means that if your customers grow enough to seek superior hosting, you’ll lose them all fast.
There is also the matter of not being able to stop this business easily. You won’t be able to just up and move your own website to a new host if your current deal becomes unfavorable or if you find something better.
Breaking a reseller hosting deal will mean waiting for your own contract to expire and smoothly breaking contracts with your own clients before that.
This situation can lead to some heavy financial losses as well as be a blow to your brand’s reputation.
You should also bear in mind that your entire reselling business is completely dependent onto someone else. Should the original host experience some problems, you’ll be losing money and clients. Any issues with technical support will also lead to this.
Should You Start a Reseller Hosting Business Today?
If you run a business that deals with web design or something similar and reselling can give it an extra boost, becoming a hosting reseller is a good idea. If you plan it as an independent small business, be sure to think through the possible risks and gains very carefully.
However, the most important thing is to be 100% confident in the reliability of the hosting provider you plan to work with. As your own reputation and success will depend on its performance, your host must be the best.