The resale of accommodation is one of the new job options that appear today, due to the growth of digital businesses or the dissemination of those physicists in this environment.
If before the internet was only a source of research for understanding, in recent years this has changed. For more and more we have:
Professional profiles on social networks;
Sale of digital courses;
And much more.
That is, you can buy, with just a few clicks, several items that previously would not have been possible.
Daily, several new businesses appear in the digital environment. Something that is increasingly favored due to the increase in mobile navigation - cell phones, smartphones and tablets.
To continue to stand out in the market, countless physical companies create their own platform in order to compete with the new digital models. All of these factors have moved the reseller hosting market. So, throughout this article, we will talk more about how it works and why it is a great opportunity for you to invest!
Reseller Hosting is an excellent opportunity for companies and professionals who manage many sites and find it difficult to centralize their operation and maintenance. It is also a good solution for companies that are looking for scalable growth but do not have a budget that allows the purchase of a dedicated server.
On the other hand, there are people who seek resellers of accommodation, with the objective of creating a business on the internet, without worrying about technical issues, just wanting to focus on prospecting and maintaining customers. There are also those who want to add another product to their IT solutions portfolio, to expand the market and demonstrate more authority on the subject.
No matter what the goal, reseller hosting is one of the most democratic ways, both for those who want to take advantage of plans to increase their capacity to act and for those who want to open a business.
To help everyone we made this complete guide to reselling hosting, with invaluable information to expand your view on the subject. Want to know more? Keep reading!
The biggest question here is what exactly a hosting reseller is, so we will explain how it works.
Hosting: the whole process of reselling hosting as for its supply which, in this case, is done by the hosting or host. Therefore, the company that will invest in equipment such as servers, for example. As well as, in IT teams to provide all technical support and perform specific maintenance of this service;
Reseller: So, that's where resale comes in, which is formed by entrepreneurs who want to start their own business. But, who does not have the capital or wish to make the investments mentioned above. Basically, the reseller's role is to sign a plan that will allow him to resell space on a third-party basis with the servers of the contracted hosting;
Customers: finally, we have the public that comes looking for a reseller of hosting sites. Since, they need to develop their own platform, be it a blog, institutional website or e-commerce.
What is Reseller Hosting?
Let's start our complete guide with an overview of what reseller hosting is all about. To make it clearer, let's separate the two terms, reseller and hosting.
Reselling means reselling, that is, you bought something from a supplier and resell it to a third party with a profit margin. Thinking logically, this is the traditional retail model, the supplier sells at an affordable wholesale price, and the retailer cuts the product to sell individually.
Hosting is nothing more than renting a space for people to host their websites, applications and other solutions on the internet. This rent is what popularized the creation of online solutions, since, for most people and companies, it is not feasible to maintain your own server just to host a web application.
Let's go back to our hosting reseller, in this scenario, the reseller acts as an intermediary, buying comprehensive plans from the hosting provider, at a competitive price and reselling at a fair market value to third parties - who can be their own customers, if you are a web developer or a digital agency owner.
You will not be a seller of third-party hosting, but the owner of your own business of this service, with your own brand and approach, without the need to invest heavily in equipment, personnel and server maintenance, which will be on behalf of the contracted provider. You will have the chance to customize the entire service available according to your company.
Who is hosting reseller for?
There is no static rule, in principle, anyone with an entrepreneurial spirit who has, or is focused on knowing the area, can become a reseller of accommodation. However, we will start from the assumption that some professionals, entrepreneurs or companies, already have a paved path to add resellers of accommodations in their product list.
Digital agencies, which work with the creation of marketing strategies - content creation, dissemination, development of web solutions, such as applications and websites, among other services. When offering accommodation, the agency has the opportunity to offer a more complete and centralized package, in addition to increasing its profit margin.
In addition to marketing agencies, reseller hosting is indicated for people who always wanted to undertake in the IT area, but do not have very high capital. The low investment - the plans vary, on average, from $50 to $400 - without the need to worry about structural issues, allows the entrepreneur to dedicate 100% to the strategies of disclosure and prospecting for customers.
What is the relationship of this market with the creation of professional websites?
Before we talk a little more about the characteristics of this service, it is very important to relate it to another theme.
This is because the creation of professional websites is another type of business that is growing today. In this respect, understanding how it works is a two-way street.
Since, to sell your product (outsourced hosting), it is very important that your company has a professional website!
Its resale, despite outsourcing a service, offers services as a private label. Then, you will need to create a platform with an image:
So that, in doing so, you gain the necessary credibility to boost your sales.
The second reason that makes understanding about this creative service important is customer support! Even if your company is not going to provide this service, just hosting. Understanding it better opens space for creating partnerships in this market.
Who is it aimed at reselling hosting?
Some aspects, such as low investment and low degree of difficulty, make reselling a service that can be made available to any type of person who wants to start or expand their online business. Let's exemplify this, to make it clearer.
Entrepreneurs: assuming that the resale of hosting is an excellent business for those who want to make money on the internet.
Web designers, developers and agencies: who already work with website/system creation, and also want to offer the hosting service.
Internet providers : tactic to increase business and offer host service
People who have more than one website: which reduces costs and gives more control to the account owner.
Unlimited Hosting Reseller. Is there really?
Another very common question for those who want to start their own resale is whether the hosting is really unlimited. The reseller hosting service allows those who hire a hosting plan to host as many websites as they wish.
However, it is unlimited according to the space available on the server. That is, it is not infinite and when the total of the plan is reached, an upgrade is necessary. This happening is even a good indication for resale companies, as it demonstrates that your service has been in demand.
In addition, it is important to note that there are other resources that may be limited. Then varying from company to company, the most common are:
Band: or bandwidth , are the famous data transfers that occur on the websites daily. Like, numbers of possible downloads, accesses, views and more;
Disk space: it is precisely the “location” on the server, where data related to the site will be stored. Whether it's your creation, referring to pages, layout, etc. As well as, the information provided by the page's leads , either through a purchase or contact forms;
Email accounts: after a website is hosted, it receives the right to create personalized emails that, in general, carry the domain in its “name”. But, although you can create more than one for each site, this resource is still limited. A very common example of using this is professional emails for each member of a company/business.
We can see that, basically, resources have limits related to memory and CPU, which varies according to the plan.
Why Invest In Reseller Hosting?
Now that you know a little more about how the reseller hosting itself works, I want to show you some of the benefits of working with this business model. Both in the aspect of benefits offered to allow the creation of a main or extra income. As well as to offer to your customers!
1. Cheap website hosting:
We can say, then, that one of the main advantages of this resale is that the practiced values are much more taken into account in two aspects:
Cost reduction: you don't need to spend on equipment, technical support, maintenance and the like to start your business. That is, without being responsible for any operational part focusing on creating a fully digital business that requires low initial investments;
Service offered: Another benefit is that it will be you who will determine the charge for your accommodation. Then, it becomes easier to practice accessible values by attracting the public comprehensively. As long as the determined price does not cause losses, since she herself will have to pay her plan in the future and still offer profits.
2. Reseller of SSD hosting:
Regarding server space, a good hosting is one that has HD SSD, a service that will increase by 4x :
From the page of your platform and your customers, something essential for a potential lead to remain on it, increasing your conversion. It turns out that the slower a website, the greater the chances of a reader not waiting for it to load. So, this generates:
Ranking penalties - website optimization;
Increase in the bounce rate - mainly in mobile navigation;
Opportunity reduction - affecting the financial .
Therefore, seek to provide the best service to your customers in order not only to attract them, but to maintain it during the contract renewal period!
Companies that want to have greater control over their customers' hosting panel
Reseller plans are also interesting for companies that need their customers' accommodation to be managed in separate panels. On the other hand, professionals who manage multiple sites will be able to manage them through a single control panel, thereby adjusting storage and traffic resources according to demand.
Freelancers and service providers
For freelancers, web developers and web designers, reseller hosting offers some benefits, such as the possibility of having greater control over clients' websites. There is the opportunity to earn extra money by selling the hosting with the service, or even to use the most affordable price of the reseller plan, as a way to offer discounts to the customer, thus having a differential in relation to the competition, which outsources this part.
Internet service providers
Reseller hosting may be just another product for people who already offer some service on the internet and who want to increase their revenue. It is a way to increase traffic to your website, exposing your main product to more people who are looking for IT services.
What are the advantages of reselling hosting?
Well, now that we have seen what it is and for whom the hosting reseller is more suitable, let's understand how it benefits your resellers in practice.
Earn money by reselling
The first benefit could not be another, you can make the reseller a business and make money from it, cutting the contracted space and selling smaller packages.
If you have a website, for example, you can hire a reseller plan instead of a basic hosting and resell the space you don't use, earning extra money, or using that extra money to make the website financially self-sustainable.
It is an excellent opportunity for companies that have a very large website, with a lot of traffic, or for those that work on portals with multiple pages to grow in an orderly manner.
Reseller packages allow for better financial planning, as you will only pay one monthly fee, instead of several. In addition, you have the opportunity to provide a large amount of storage and resources for your company, at a more affordable price, instead of having to purchase additional hosting plans each time you increase your demand for resources.
Generally, companies that need to have several websites and web applications running at the same time, end up being forced to buy a dedicated server. Reseller hosting plans allow the entrepreneur to take advantage of similar resources at no additional cost.
As most reseller plans are more affordable than any dedicated solution, it makes room in the budget for investment in structural areas related to website development
Have more control
Reseller packages offer the micro management capability for your website, that is, you will have access to a type of management in which you will closely observe and control various aspects of the page. It is an excellent way to manage all areas, controlling resources such as storage, bandwidth limits and other important areas.
Have high capacity without worrying about maintenance
You can choose to have your own server in your company, when the demand for hosting is very high. In return, you will need to have a support team ready to correct errors and maintain the availability of that server. This can generate an extra expense and, mainly, make you lose the main focus, which should be the core business of your business.
A hosting reseller plan is very similar and having your own server, with a very marked difference, you have a provider behind guaranteeing the functioning of the infrastructure, focused 100% on it, after all, this is their core business.
How does reseller hosting work?
Now that we know what it is, for whom it is indicated and the benefits of reseller, let's understand a little about the operation and resources that are added to such a plan. To better illustrate, let's talk about a Linux SSD reseller hosting plan:
What are the main free features?
SSD reseller plans provide a free website building tool, which brings more than 190 templates available. It also allows the transfer of website, domain, MySQL database and scripts, free of charge. In addition, the user will have access to more than 470 scripts that can be installed in a few clicks.
What support channels will the reseller have?
When you hire one of reseller hosting plans, you will have multi channel support. In it, you will have at your disposal live chat, online ticket system, telephone, email, automatic backup routine and 24/7 monitoring.
It is everything you need to guarantee the availability of your website and your customers, as, as we know, problems do not arrive by appointment. Therefore, it is very important to have the possibility to contact support at any time and on the device that is possible.
What are the main security-related features?
When we hire a hosting plan, whether conventional or reseller, we are confident that the provider will keep the server secure. Linux SSD reseller plans offer the following benefits:
password protection of Directories;
Unlimited Backup backups.
What points to consider before starting reselling?
Let us now understand better the main points that you should analyze before choosing your provider and contracting your reseller plan. These details should be in line with your demands, not just the current ones, but also your scalability forecasts.
It is undoubtedly the main aspect when it comes to hosting, as it is this factor that will define the number of customers you can resell to. The leading hosting providers offer 30 GB plans, even plans with unlimited storage . The choice should be made according to the needs of your business.
Another factor that you should analyze is the storage technology, you can choose between the traditional model, HDD, with hard disk, or SSD, in which the data is stored in a fixed circuit. The SSD lodging performs better than the other option, though a little more expensive.
The transfer is what determines the amount of data that can be transmitted on one or more hosted sites. It is another factor that influences performance, which makes this item as important as storage.
Some providers place limits on data transfer, in order to reduce server overhead. However, there are companies that have a data center prepared to handle high transfer rates, and offer reseller plans with unlimited traffic.
As your goal is to have simplified management and increase your sales capacity, there is no reason to limit yourself, because by becoming a reseller that offers these resources in a limited way, you increase your selling power.
To work with a range of customers, you will need to have variety, as the technology market is very diverse. There are developers specialized in the most diverse programming languages, the more comprehensive your plan is, with support for several languages, the greater your reach.
Most providers offer Linux hosting plans, with Apache as a web server, with support for PHP and MySQL. This combo already serves developers who work based on CMSs like WordPress . But there are providers that offer reseller plans with support for languages like NodeJS, Python, Ruby and Perl, Linux Expert unlimited reseller plan is one of them.
This is another key factor that you should consider before choosing your reseller hosting plan, as you will need quick responses to return your customers in the event of a malfunction.
In addition to preparing the attendants, to present solutions and ways for you to solve the problems, the channels must be diversified - chat, phone, e-mail, ticket system etc. - so that you can get in touch on the spot and with the device that is most accessible at the moment.
It is also important to ensure that support works 24 hours a day, 7 days a week, as your client will seek quick answers to your problems, and today we have already broken the barrier of business hours as standard, many people work in home office without a routine.
Uptime is the indicator that defines the availability of the hosting server, that is, it ensures that your website and your customers will not go down. Your provider, in order to guarantee a service without interruptions, must guarantee an uptime between 99% and 99.9%.
What are the main differences in reseller of accommodation in home country and abroad?
Now we go to some technical differences that differentiate the reseller of hosting in home and the international one. There are some differences between performance and latency when a website is hosted on a server near the user's home, which most of the time may seem inconspicuous. However, for those who always want to extract the best performance from their hosting server, it is important to know these differences.
Latency is nothing more than the response time that a machine takes to communicate with the server in a request. Every time you access a website, your browser finds the server on which it is hosted and then downloads the files.
When the page is on a server outside the country, the request you made goes through an odyssey to find the destination. The entire path that this data takes, through different means - network cables, switches, optical fibers and Wi-Fi routers - consumes some time, even if it is small.
Depending on the type of website that you - or one of the customers to resell the hosting for - behaves, this time, added to other aggravating factors, can affect performance.
Therefore, we can define that, if the response time varies according to the distance between the visitor and the server, when reselling a hosting service without servers in the country, you are selling a higher latency.
As ridiculous as it may seem, some types of websites and web applications require immediate responses. On online game pages, for example, a few milliseconds can be decisive for a player to lose the game and even money, if he has acquired some extra resources in the online store.
When we work with the reseller of a segmented product, we have to avoid creating barriers to the acquisition of new customers as much as possible. For this reason, give preference to reseller domestic accommodations and have redundancy in CDNs abroad - CDNs store a copy of the website on servers around the world.
We talked about the importance of customer service and how much it adds to the user experience. You as a reseller must seek the best possible condition to maintain a relationship with the provider you have hired.
If you really want to resell hosting from a company outside the country, give preference to those that offer support in other languages. All you do not need is that, in the face of a serious problem, you have to deal with an attendant who cannot communicate, or have to keep translating tutorials and FAQs with customers charging for solutions.
Another important factor that goes unnoticed by many people is the difference in time zone between your home country and the country of the hosting provider that you are interested in reselling. The maintenance of data centers, usually happens in the early hours, as it is a time with less access and reduces the risk of inconvenience.
If your accommodation is at native country and your audience is too, you will be protected with maintenance during low traffic hours. On the other hand, if your server is on the other side of the world, maintenance will take place at peak times. Of course, this most of the time does not interfere with anything, but if your intention is to reduce the margin of error as much as possible, it is good to be attentive to every detail.
This is another important factor in the difference between domestic and foreign accommodation and legal protection. In any bilateral agreement, divergences can occur, however, if the company that you contracted the reseller plan does not have representation your situation to resolve the pending issues will be very complicated.
At the end of the day, you can lose money and get involved with customers who are committed to delivering the hosting. Therefore, once again it is very important that the contracted company has national registration so that you can solve any problem in a domestic forum and without major bureaucracies.
In this post, you had an overview of the hosting reseller, its benefits, advantages, main points to be observed before hiring.
We have also seen that the hosting reseller is a comprehensive business, which can be done by people with different profiles. From someone looking for a product to start an enterprise, even to the consolidated company that wants to expand its product portfolio.
The important thing is that you can start your hosting reseller business right now, just hire a plan, most at very affordable prices, and start your strategy of advertising and prospecting customers.
Frequently Asked Questions
What knowledge do I need to manage a reseller?
A: Taking into account that the administration panel has already been set up by the company that will provide the plan, little knowledge and a desire to learn is required.
How do I choose the best company to provide me with a reseller hosting plan?
A: Many criteria must be taken into consideration, but the main ones are good support, server uptime (time the server remains online) and a simple handling panel (preferably WHM/Cpanel)