Guidelines to Become a Profitable Hosting Reseller With Effective Client Management

Why customer service is worth investing in, plans, marketing, help and support, your parent host, prices, niche, FAQ.   

A recent survey asked around 2,000 business professionals about their top priorities for the next five years. Customer experience came in at the top with just under 46%, ahead of product and pricing with 34% and 21%, respectively. In 2024, 86% of customers are ready to pay more for an above-and-beyond experience.

The hosting reseller niche is growing dynamically, and it has piqued your interest. You need to consider a number of factors in order to ensure a decent profit margin, customer satisfaction, and long-term success.

Your hosting plans

What kind of web hosting reseller plans will you offer? Consider their features – SSL, free domain, SSD storage, free backups, etc. You need as many features out of the box as possible to stand out. Your plans should allow the hosting of an unlimited number of websites.

Help and support

Leading hosting providers with hundreds of thousands of customers have very few agents per customer, leading to poor customer service quality. As mentioned, the customer experience is of paramount importance, and you don’t want your clients to wait forever to get help. As a hosting reseller, you can solve the problem of poor customer service. Ideally, your parent host should provide competent support around the clock all year round.

Your parent host

On that note, the parent hosting provider whose services you’re reselling is at the heart of the matter. You need to choose this company very carefully because you will be offering their plans, tools, and features to your own customers as you resell their packages. Choose a company with a good reputation and affordable packages.

Your marketing and execution

A smart marketing strategy and a plan for its execution are vital to any business’ prospects. There are different ways to get the word out on your reseller hosting plans. You can run email outreach campaigns, post ads on social media, or publish paid ads on search engines. Depending on your budget, you might pay influencers to advertise your services.

Many resellers already have a group of customers they offer services to, like web development or design. If this is the case, you can simply create a website or a webpage for the new service, upload your offers, create marketing funnels, and promote ads.

A suitable marketing strategy will not only draw attention to your services, but also show your clients that you tailored them to meet their needs, and they’re better off choosing your packages than the generic ones available on the market.

Your prices

Shared hosting and WordPress hosting plans are typically the most affordable. As a reseller, most of your customers will be small businesses with limited budgets. Pricing is key because your services need to be affordable and profitable to you at the same time.

More expensive plans are already quite pricey when you buy them from your parent host. Hitting your profit target might be easier with these plans because your customers won’t find that little bit of extra you charge all that significant.

Your niche

Finally, providing niche services is probably the most important way to ensure your success as a reseller. This involves focusing on a specific client persona or industry. It will help establish you as an authority in the niche, and people will be more likely to sign up because they feel you understand their needs.

If many of your existing customers have WordPress websites, you could focus on WordPress plans and resell only them. Your services will stand out with features like automatic updates, one-click WordPress installation, and WordPress acceleration.

FAQ

How profitable is the hosting business?

The hosting industry’s profit margins are quite high. What’s more, operating and maintaining this business doesn’t cost much. All you need to do is set up the initial infrastructure and wait for your customer base to grow. Then, you’ll see the profit come in.

How can I become a successful reseller?

• Choose unlimited reseller hosting.
• Choose a great hosting company.
• Set goals and make a business plan.
• Figure out your tech support.
• Create a variety of hosting plans.
• Go for creative branding.

How do I get more web hosting clients as a reseller?

• Create an elegant reseller website or page.
• Offer quality support.
• Target a niche.
• Optimize your SEO and write a blog.
• Craft a social media presence.
• Avoid overselling.