As a web designer, you are probably always looking for ways to increase your bottom line and make a little extra money. One incredibly easy way to do this is by reselling web hosting plans to existing customers - as well as new ones. Most likely, the customers that you currently develop websites for go on to hire another agency to host those sites - why shouldn’t you be able to do that for them? Since they’re already working with you, they are quite likely to be amenable to such an arrangement. If you’re sold on the idea of reselling hosting, read on to learn the basics on how to do so successfully.

Getting Started With Reseller Web Hosting

Like anything else online, getting started with reselling hosting requires a bit of shopping around. You will need to find a web hosting company that works with developers like you who wish to resell hosting to clients. Fortunately, there are many such companies available; unfortunately, wading through them all can be downright confusing. To begin with, it helps to have a basic understanding of what web hosting actually is.

Web Hosting In A Nutshell

Basically, a web hosting service is one that allows people or organizations the ability to make a web site accessible on the Internet - to make a website go “live,” so to speak. Web sites require space on computer servers in order to exist; web hosting service companies lease out space on their own servers so that people can run their website in an affordable way. Web hosting services come in a variety of sizes and with a broad array of different options; the most basic ones offer a simple web page and limited file transferring capabilities, while more extensive hosting plans include database support and the platforms required for application development.

How Reselling Web Hosting Works

When you resell web hosting, you purchase a certain number of space on a web hosting service’s servers and pay a monthly or annual fee; in this case, let’s say that fee is $100 per year. You then break that space up into lots and lease them out individually to your clients. If you broke that space up into ten lots and leased it out for $20 per year, you would make a $100 annual profit. Those numbers are strictly for example, though; you can stand to make a bit more, depending on what you plan to offer.

What To Look For In A Reseller Web Hosting Provider

Since reselling hosting has become such a popular option, many web hosting service providers offer plans specifically for this purpose. These are the plans that you should shop around for, since you won’t need any extensive knowledge of web hosting - or have to deal with issues like hardware, software, connectivity problems or other issues. Those types of problems are forwarded directly to the service provider, and completely circumvent you.

So, what should you look for when shopping around for a reseller web hosting provider? We’ve highlighted a few of the most important things to find out below:

  • What is the fee? Is it charged monthly or annually?
  • How much space do you get?
  • How many clients can you serve at one time?
  • Is the plan upgradeable - i.e., can you add space for additional clients if necessary?
  • Is a user-friendly control panel included with the service?
  • What kind of customer support is provided?
  • What kinds of maintenance tools does the service include?

There may be other details to consider, depending on what kind of hosting plans you intend to offer. The point is, though, that you need to shop around and compile as many different quotes and comparisons as possible. You’ll discover that pricing and features vary greatly from provider to provider; by shopping around, you’ll be able to find the best deal that you can make the greatest profit from - and that won’t consume all of your free time.

Suggested Hosting Companies

The majority of big name hosting companies out there all tend to have some sort of reseller program. Just because they offer it, doesn’t mean it is a good one or easy to use. If you know very little about the whole hosting reseller process, you should go with one of the larger hosting companies that are known for easy reseller options. These hosts will be much more apt to walk you through the whole process and offer more support than those who just offer reseller programs on the side. Here are some of the most popular hosts with reseller options:


  • 1. Host Nine

    Get up and running for under $20 with our complete solution, which includes a merchant account/domain reseller account, FREE WHMCS billing software and FREE cPanel control panel.


  • 2. Host Gator

    You would be amazed how easy, lucrative, and cheap it is to become your very own web hosting company! We give you all the tools and support needed to have you up and running in just a few minutes time.


  • 3. Eleven 2

    You would be amazed how easy, lucrative, and cheap it is to become your very own web hosting company! We give you all the tools and support needed to have you up and running in just a few minutes time.


  • 4. Site 5

    Starting your own web hosting business has never been easier. We now offer 3 diverse reseller plans which all enable you to literally become your own host, and to start offering high-end hosting services to your friends, family, and other potential customers within a matter of hours!

Advertising Your Service

Once you’ve signed up with a suitable reseller web hosting provider, the ball really is in your court in terms of getting things going. While extensive knowledge of web hosting is not required to resell hosting, advertising and marketing know-how definitely is. You need to get the word out about your reseller hosting plans - and make them competitively priced enough that people actually want to use them.

Market To Your Existing Customers

The first thing you should do is let your existing clients know about your new service. You may be surprised to find out how many of them are interested in it. Place prominent advertisements about your hosting packages on your website and through the various social networking websites you use. Mention the new service in emails you exchange with your existing clients - get the word out wherever possible.

Advertise To New People

Since you will now be providing web hosting, you can expand your advertising to target entirely new people. This is a great opportunity to engage in a new advertising campaign revolving around your hosting services. Make sure to expand your promotional efforts beyond your existing circle of clients.

Bundle It Up

The absolute best way to market your hosting plans is by bundling them with the other services that you provide. This is not only smart marketing, but it can give you an edge on the competition. Whether you offer web design, search engine optimization and other Internet marketing tools, SSL certificates, domain names - or a combination of all of those and other services - adding web hosting to the mix can only improve your success.

By becoming a one-stop shop for all of your clients’ web-based needs, you can really broaden your customer base. Reselling hosting doesn’t have to be difficult; the most important factors are finding a web hosting services provider who is easy to work with - and advertising your services effectively. As long as you do both, everything else will fall into place and you’ll have an additional income stream.

About the Author

Danny is one of the raddest creatives this side of the Mason Dixon line. He has freelanced from all over the world, but most recently lived in Costa Rica. He has a somewhat unhealthy obsession with toys, LOST, and sharpie markers.

26 Comments

  1. Arizona Web design says: Jun 19, 2009

    Thanks for this, some good ideas and tips for the new comers.

    1. Rino says: Jun 21, 2009

      So true! And this website is amazing

  2. Romi says: Jun 19, 2009

    wonderful offer but you havent mention Megahoster.info and Deposithost.com that one is most cheapest reseller host in this business

  3. Tim | Primitive says: Jun 19, 2009

    Good article, although I don’t agree with all your host recommendations.

    I have had some issues with Eleven2 before, and Site5 have not had a good reputation over the past couple of years after starting off very well.

    HostNine are, however, great and I use them myself. HostGator are also pretty good, but I would also recommend InnoHosting and Downtown Host

  4. Zach Dunn says: Jun 19, 2009

    I’ve been doing this with clients for the past year or so, and it’s worked well so far. My initial concern was that when the host had issues that I’d take heat for it, even though it was out of my control. Fortunately this hasn’t been the case yet, but I guess that’s the part where you pick a reliable one!

    1. Media Contour says: Jun 24, 2009

      If there ever is a problem with hosting, do you refer your client to the host reseller or do you attempt to find out how to fix the problem yourself? Seems like it could be time consuming if there ever are any technical issues with the hosting reseller.

  5. Business Website Des says: Jun 20, 2009

    hey they sound logical…thanks for posting

  6. Robin says: Jun 20, 2009

    I’ve been reselling for a while now, it’s a great idea - if you’re in the UK I’d recommend Clook or UK2

  7. Rick Spooner says: Jun 22, 2009

    Great tips on adding some extra income. I’m using http:webhostdomainz.com for my hosting. So far they’ve provided great services and 24/7 support. With the low hosting rates I’m able to save my client’s money and still make additional income alongside my web design services.

  8. ian says: Jun 22, 2009

    yeah i think my biggest concern is dealing with technical support.

    why no mention of MT? is there something i should know?

    1. Caitlin says: Jun 29, 2009

      I work for a web hosting company, and we have a lot of resellers (including web designers and small reseller hosting companies). In general, resellers leave all of the technical support to the hosting company. It seems to work out well for most people.

      However, you have to make sure you’re reselling hosting from a reliable provider. Recently, a web host’s servers got hacked, and about 100,000 sites were deleted (some were recovered, but others are gone for good). The web host offered really cheap hosting, but they didn’t back up their servers.

      A lot of resellers were really upset because they had a lot of angry customers with deleted sites. Resellers complained that the hosting company was making them look bad, so I guess when it comes down to it, you as the reseller will get the blame.

      To sum it up, be very careful about who you buy hosting from when you’re a reseller. Hope that helps!

    2. Phil says: Jul 2, 2009

      Very good point Caitlin. Really pays to do your homework on this one when you’re looking around for a hosting company.
      Similar thing happened one of my friends before. He had a pretty successful web design company and decided to move into reselling. He didn’t do much research into the company he chose and in the end they screwed up big time.

      They also failed to backup their data and a lot of his clients sites were lost. Of course they weren’t too happy about it and he got the blame. Word got around and not only was his venture into reselling pretty much downhill from there, but his web design wing also suffered from bad word of mouth.

      In the end he had to go through an entire rebrand and pretty much start from scratch, save for a few understanding clients. Pretty pricey lesson to learn. Little bit more research would have saved him a lot of cash!

    3. arsha @ brand. build. sell. says: Aug 29, 2009

      i’m a designer who recently started reselling hosting. my biggest issue is that i was hoping to resell hosting to create a residual and passive income for myself. i have a hostgator reseller account and they have very helpful with setting it up. however is this considered passive income when i still have to provide technical support, problems with accounts or setting up features? hostgator doesn’t provide tech support for customers under my reseller plan. so i recently decided to switch to godaddy to try them out.

      now i don’t really care for godaddy, but what are my other options for wanting to provide hosting but NOT provide hands on tech support for my customers?

  9. sama creation says: Jun 22, 2009

    thanks

  10. Medical Web Experts says: Jun 23, 2009

    Nice work Chris. . The inbound links really helps a lot in optimizing the website for getting a deeper search engine penetration, hence increasing the overall ranking. In the latest advancements of the search engine spiders, search engine optimization has not left by mere re occurring your desired keywords, It is highly required that your website design and content should serve as an enticement to the web spiders. It’s of no use to have a site which doesn’t comply with the standards of search spiders. I got my medical website reconstructed from a web designer and marketing company named http://www.medicalwebexperts.com. They need to almost reconstruct every page to make it compliant with search engine algorithms. After a few months of time, the impact was definitely distinctive in my income. I have got a steady increase in the patients, which was a direct result of reconstructing and marketing my old obsolete site.

  11. oo says: Jun 24, 2009

    http://www.flickr.com/photos/39039184@N08/3589500893/

  12. Aditya Saxena says: Jun 30, 2009

    I’ve just started following this blog a couple of days ago and I must say I need not go to any other place to satiate my hunger. What superb post this is!

  13. GoMay says: Jul 8, 2009

    perfect i was about to run a reseller with Startlogic and i was like there has to be a better way. I’ve been with them for over 6 years and never had a site go down. THey’re offereing packages for referring people to them at 100 a client, and charging a significant amount just for the reseller status..and they’ll bill you upfront for the client. I’m thinking about using the HostNine for a reseller add on..since i’m offering, websites, business cards, and tee merchandising with new clients.

  14. GoMay says: Jul 8, 2009

    dmn man after researching hostnine they’ve been getting SMASHED in regards to their tech support and up time..hostgator it will be.

  15. Amy says: Jul 9, 2009

    alert(”XSS”)”>

  16. Anonymous says: Aug 4, 2009

    Eleven2 is a horrible webhost. Not only are their servers unreliable. Their techs are rude (especially the AIM tech) I was actually blocked by their aim tech support rep. What kind of customer service is that?

    They also lie big. They advertise 24/7 support. However if you have a problem Friday afternoon, you’re not going to get ANY help till at the very earliest Monday afternoon.

    Horrible Host. I unwittingly signed up to be a reseller with them several years ago. I pre-paid in full and have not used the hosting at all for the past year and a half. I still own it of course since i pre-paid for it, but I will not be renewing, and no clients of mine will ever be hosted with them.

    I’ve done my best to spread the word about how bad of a host they are, and have seen many others doing the same. DONT host with Eleven2

  17. Web hosting services says: Aug 23, 2009

    Will there any problem arise when we try to resell the hosting rights?
    Is it safe to do?

    1. Phil says: Aug 23, 2009

      Issues such as what? Any issues in particular you are concerned about?
      It’s pretty safe once you know what you are doing and you have done all your research beforehand. Knowledge is certainly power in this case.

  18. Web designing seo co says: Oct 15, 2009

    A good amount of business can be lost if the website is not well designed and even a well designed website wont be able to serve the purpose, if it does not hold a good search rank. Web SEO Development companies in India provide 360 degree solution in web designing SEO optimization.

  19. James Ballard says: Oct 22, 2009

    I like the plans that are more affiliate-like which are more commission-based. Been burned too many times being the middle man with technical support issues at odd hours, weekends and/or holidays.

    Had many a frantic call from clients using Eleven2 and 1and1. Nothing worse when they are angry with you and you aren’t near a computer, or, can’t get AIM support to answer.

    That being said, I use Eleven2 (which all of my clients hate) however, it works for me as the cpanels are awesome and I can do just about anything with my knowledge (designer, not a coder).

    So, until I hire a crew of people to handle up on everything web, I will let my clients use their own hosting (affiliated by me, hopefully).

    jb

    btw : Great blog and an excellent resource! Keep it up Danny.

  20. Web 2.0 says: Oct 22, 2009

    Maybe we should start our web hosting company…

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About Danny Outlaw

Danny Outlaw

I'm Danny Outlaw and am the mastermind behind Outlaw Design Blog. I work full time as freelance creative consultant.

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