5 Things To Look Out For Before Starting A Reseller Hosting Business

Buying a web hosting service? Check these 9 tips | Tom's Guide

With an ever-increasing demand for web hosting services and a low barrier to entry to become a Hosting Reseller, many people have started considering starting a Reseller Hosting business. While you don’t need to invest a lot of money or be a technical expert to become a Hosting Reseller, establishing a successful Reseller Hosting business requires a certain amount of preparation and planning. 

Today, we will share five things that you need to look out for before commencing your web hosting business as a reseller.

Reseller Hosting

In a Reseller Hosting business, you purchase resources required to host a website by going through Reseller Hosting plans and choosing the one that best suits your target clients. Once you have the resources, you create smaller hosting packages based on your client’s needs and sell them. With white label support, you can create a brand and approach clients as a hosting company would. You also need to choose the operating system that works best for you. Linux Reseller Hosting plans are more popular than Windows primarily since Linux servers come coupled with cPanel as the control panel that offers several benefits over other control panels. Also, Linux being an open-source platform has many benefits over the license-driven Windows platform. 

Here are five essential things that you must keep in mind before commencing Reseller Hosting in India.

1: Create a business plan

One of the first things that you need to do even before you buy the reseller plan is defining the market segment that you plan to target. Understand the hosting requirements of websites from this segment, look at the hosting providers that are currently catering to them, find pain areas, and mentally create a hosting package that you think can work. This will help you buy a reseller plan with adequate resources and create packages that are best suited to your target client’s websites.

2: Create a budget

While the cost of investment is low, there are many associated costs with a Reseller Hosting business. How are you planning to set up customer support? What are the costs of setting up an office (if any)? How much do you plan to spend on marketing your Reseller Hosting business? These costs will have to be factored in along with the cost of the Reseller Hosting package. Research well and have a cost budget that allows you to price your hosting packages competitively.

3: Price your packages carefully

Since web hosting is a recurring cost, most site owners consider the price of the plan before buying. Some resellers try to offer hosting at really cheap prices, making the business unsustainable in the long-run. On the other hand, if you price them too high, then site owners might stay away. Hence, it is important to price your plans in a manner that they seem cost-efficient to your target clients.

4: Choose a reliable parent hosting company 

Since your hosting packages are based on the resources offered by the hosting company, their performance will be linked to how the company manages its servers and infrastructure. Hence, it is important to choose a reliable Reseller Hosting provider with positive reviews from other resellers. Also, ensure that the company can accommodate your growth by offering scalability and flexibility of resources.

5: Use a good billing system

You need to ensure that you choose the OS of the server based on your needs. A Linux server usually comes with a cPanel Reseller Hosting plan that allows you to reap the benefits of cPanel – the most popular control panel for websites. Also, when it comes to managing the billing process, use a tool like WHMCS that can help automate the processes and boost the efficiency of your business.

You can also check out the following video for a quick guide to starting a Reseller Hosting business in India:

Summing Up

While Reseller Hosting is a great way to enter the web hosting business and earn a regular income, it requires a strategic approach. The tips mentioned above can help you ensure that the basics are in place so that you can focus on establishing and growing your business.