How reseller hosting works, how to choose a parent host, why you need a business plan, and the most crucial elements of reseller hosting packages.
The main difference between reselling web hosting and regular hosting is using an existing hosting service’s infrastructure instead of building your own. You get your hosting from another company, which provides the servers and admin access for you to manage client accounts through cPanel, Plesk, or another control panel. As of 2024, cPanel is used by 6.8% of all websites in the top one million with known panels. Plesk is used by 4.6% of websites.
How does reselling hosting work?
Resellers create customized hosting plans to offer at different prices. They must also be able to register domains for your clients. Just under 48% of all websites end in .com, making it the most popular domain. It is followed by .org and .ru with 4.7% and 3.7% of all websites.
You create a website to market your reseller hosting services and leverage social media and SEO tools to drive traffic and conversion.
You also need tools to process payments, invoice clients, and offer support. In 2024, 46% of businesses report customer experience as their highest 5-year priority, preceding products with 33.6% and pricing with 20.5% of businesses.
The parent hosting company is responsible for server maintenance. It activates reseller accounts, consisting of the main control account with reseller web hosting permissions.
How to choose an upstream hosting provider
Consider the infrastructure, control panel, plans, pricing, quality of support, and reputation. The provider needs sufficient redundant power, reliable data centers, and fast connectivity. With each second of load time between zero and five seconds, website conversion rates drop by 4.42%.
Make sure the control panel is easy to use, and check if the company offers hosting plans at price points that can be resold at a profit. If the transfer or setup fees are too high, look elsewhere.
Submit a test ticket to check the quality of their customer support. Responses should be competent and quick. Finally, look for good security practices and proven uptime.
The importance of a sound business plan
According to 2023 research, company owners who take the time to write a business plan are 152% more likely to actually enter the market. Before you start writing, study hosting industry trends, analyze the competition, and identify your target customer personas. Then, define your business’s vision, mission, and main operation strategy.
Plan daily operations like client management and technical support workflows. Determine how you will convert customers through concrete approaches: paid ads, SEO, social media, etc.
Create near-term income statements and cash flow predictions based on realistic sales projections. A comprehensive business plan will attract partners and investors by showing your reseller business is viable. Studies have confirmed the link between rapid growth and planning, revealing that businesses whose annual sales growth was above 92% had business plans.
Customize hosting packages
You must name your hosting packages and define their features and parameters. If you are using cPanel, the “Feature Manager” option creates lists. You can also edit or delete the list from here and choose which cPanel sections your customers can access. For example, if your plans are limited to email, you can show only email-related features.
Make sure your load time is optimal. In 2017, the web page size was 1.3 MB for mobile and 1.4 MB for desktop on average. In 2023, it had increased to 2 MB for mobile devices and 2.3 MB for desktops. This amounts to an increase of 64.2% in six years. The heavier a page, the slower it will load.
Final thoughts
Hosting is worth getting into because the web hosting industry is expected to be valued at $171.4 billion by 2027, according to a study by Grand View Research. This comes to an impressive CAGR of 15.5%. Launching a successful reseller hosting business requires a strategic approach, focusing on marketing, pricing, and market understanding. Your customers deserve exceptional support. Resolve issues as soon as possible, treat each customer with care, and try to exceed expectations.
