Should you become a web hosting reseller?

Every website on the internet needs web hosting of some kind. Think of it like office premises, a space a business can call its own. Most people purchase that space from a hosting company, but there is another option: becoming the hosting company yourself.

Anyone can set up a web hosting business by becoming a reseller. The model works by purchasing hosting in bulk at a discounted rate, then selling it on to customers at a profit. Whether that model suits you depends on your skills, your appetite for marketing and how much time you are willing to put in.

Reasons to become a web hosting reseller

The demand for hosting is not going anywhere. The number of websites on the internet keeps growing, and every one of them needs to be hosted somewhere. That gives resellers a large and expanding pool of potential customers to sell to.

Unlike many other businesses, you are not shipping physical products or delivering a hands-on service every day. Your main ongoing responsibilities are handling customer queries and dealing with technical issues when they arise. The hosting itself runs in the background. Overheads are low: the primary costs are the hosting wholesale price and whatever you spend on marketing.

It is also a business you can run independently. No office politics, no reporting to a manager, no large team to coordinate. If you price your packages sensibly and present a trustworthy service, many customers will choose you on that basis alone. A lot of people looking to host a website for the first time are not deeply technical. They want a fair price and someone reliable to deal with. That is a bar you can clear without a huge operation behind you.

For a fuller picture of what the business model involves day to day, the reseller hosting FAQ covers the most common questions from people considering this route.

Reasons to think twice

The same market that makes reselling attractive also makes it competitive. You are not only competing with other resellers. You are competing with the primary hosts themselves, many of whom have large marketing budgets and established brand recognition. Getting in front of the right customers takes real effort.

If you have no marketing experience and no budget to invest in getting started, that is a genuine obstacle. Search engine visibility, paid advertising and building a reputation all take time and money. Without customers coming in, the business does not work, regardless of how good your hosting packages are.

You also need a working knowledge of how hosting functions. Not an expert level, but enough to help a customer move a site between hosts, troubleshoot a basic configuration issue or explain what a setting does. If terms like FTP, DNS or nameservers are completely unfamiliar, that is not necessarily a dealbreaker, but you would need to be willing to learn before launching. Customers will expect you to have answers.

Making the call

Reseller hosting is a viable business for the right person. Low overheads, consistent demand and the ability to run it independently make it an attractive option. The limiting factors are marketing ability and a willingness to get to grips with the technical side. If you have those, or are prepared to develop them, the model holds up well.

If you are ready to explore the option further, take a look at UWH reseller hosting to see what is available.