What is Reseller Web Hosting?

What is Reseller Web Hosting?

So, you are thinking of following in the footsteps of some of the best hosting companies out there by building your own. For you to be able to establish your own venture, you have to have dedicated servers to provide hosting services to your potential and future clients.
Unless you have a pretty huge capital, to begin with, you might have to settle with being a reseller. You might have heard about reseller web hosting but you are not entirely sure what it is.
In today’s article, I will talk about everything that you need to know about this type of service and why you should consider this over buying your own servers (at least, to start with).

What is Reseller Web Hosting?

To understand the concept, one must look into actually reselling as the premise is virtually the same. When you are a reseller, you typically get the products from an already established company and sell them for a small profit.
You typically get the product or service for much cheaper than you would be buying the products as a regular consumer. This serves both the seller and the reseller in that the former will get more brand recognition (and some percentage of the profits) while the latter gets to be selling the products and services that they love (aside from generating revenues).
So in other words, reseller web hosting is where you collaborate with an already established hosting provider and reselling their services as part of your own. You basically have your own brand and you are selling the service of the other.
Now, why is this the preferred option for people who are looking into starting their own hosting service? For one, you do not need to have a huge capital, to begin with as you will not need to acquire your own servers to provide such a service.
Second, this can be useful for the main seller as well as it not only helps with brand recognition, but they can also establish more and more people (and resellers) to their brand over their competitors.
Now, as a hosting reseller, you basically have the power to control over how much bandwidth a particular client gets. In other words, you are basically operating much like your own hosting company, but that you are providing services from another company as part of your own.
Do keep in mind that as a reseller, you have the option to increase the price a little bit, but you may have to confer with the original hosting provider if this is the case. You are running a business and they know exactly why you will increase the prices, but there is a certain threshold as to how much you can jack up the prices.
For instance, there are hosting companies that would only allow you to increase the service by 5-10% of the original consumer price.
Still, if you are looking into creating your own startup web hosting company, be a reseller first and foremost and establish your venture from there.

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