The beauty of managing reseller hosting accounts for your customers is that you can create a subscription-based or recurring revenue model without any intervention beyond the initial setup. But what does it take to build a successful company in this industry?
Hosting Reseller’s Guide to Starting a Business
There are some decisions you need to make when considering starting a resale business. Making the right decisions is the difference between one and all, and a great setup for you. That’s why we’ve written these top tips to give you a complete guide to setting up reseller hosting companies so you can make the right decisions.
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Reseller hosting involves purchasing a reseller’s website hosting package and reselling it to your customers as your own hosting company. By adjusting prices and features, you can sell hosting to a specific group of users who are looking for the type of service you are offering.
Let’s start with a brief history of this industry so you can understand the reasons for our recommendations.
At the very beginning of the hosting industry, there were two types of hosting services available to end users:
As the market developed, more and more people became interested in their online presence, and thus more and more money was spent on hosting services.
This has led to an increase in the number of companies offering hosting services as the demand for such services has increased rapidly.
Some of the biggest hosting companies these days started out as showcase company’s one person, starting with the server used to host their own websites as well as their clients’ websites.
At cosyhost, we did it ourselves – and we still do.
However, few people were able to pay for a dedicated server, so a cheaper solution for hosting startups was born.
This is called reselling because you are essentially buying the service and selling it at a high price. Hosting reseller services allowed the user to allocate space, bandwidth and other resources to their customers, adding a margin to costs and of course generating revenue from their customers.
A reseller account is much cheaper as a physical server can host multiple reseller accounts on the network as the user only has to pay for a fraction of the server’s resources by acquiring the first customers and allowing the transition to a dedicated server. Update your servers and grow further.