Reselling web hosting is a process in which you buy the web hosting resources from another hosting service provider in bulk and host websites on your own for other customer. You purchase a fixed amount of bandwidth and hard drive, then, you resell the space by dividing the bandwidth and hard drive space into smaller parts. This process is a gaining popularity over the past 5-6 years. This method has proven to be a lucrative business opportunity for many.
Obtaining reseller’s rights
If you want to resell the web space, you will have to first check if the web hosting service provider allows reselling or not. While reselling a web server, you need special administration panels, control panels, and hosting resources. All these are not provided by all web hosting service providers. Usually, only web hosting service providers who sell web hosting space in bulk offer this type of reseller’s rights.
How is web hosting reselling profitable?
There is no restriction on who can resell web hosting. There have been examples of entrepreneurs who resell web hosting space on their own terms and generate revenue. The trick here is to adjust the terms and conditions and tweak the settings such that you not only generate the investment that you made on purchasing the web space from the wholesale seller but also profits. You have the freedom of creating your own brand name and using it to market the web hosting services you are offering.
No need of intensive technical knowledge
Contrary to popular belief, you do not need extensive knowledge to start a web hosting reseller business. The control panel that you have to moderate requires knowledge on basic operations. The vendor from whom you purchased the web space on a wholesale basis is responsible for the availability and maintenance of the servers and ensures its optimum performance. All you have to do is advertise your services and find customers which in itself is a challenge.
Challenges in reselling web hosting
The competition is your biggest roadblock in reselling web hosting. There are a number of established vendors and resellers that you are competing with. You should advertise extensively, which again requires more investment. However, there is always a huge demand for web hosting services. If you manage to do it properly, you can generate substantial revenue.
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