You may have noticed that may web hosting companies offer “re-seller hosting”. What is this, and how can you earn money with it?
Reseller hosting means that you can purchase a shared hosting plan, and re-sell smaller portions of that hosting package to your clients. If you purchase a large amount of server space / bandwidth in a shared hosting platform, you are able to divide that space up among your clients, and sell it to them at a higher cost of which it is costing you. If you plan to grow your business and create many websites for your clients, offering hosting as part of your website development package is not only a great idea, but it gives you greater control over the customer experience, while setting yourself up for earning residual income.
Reselling web hosting is sometimes the bread and butter of web development companies. It may cover a portion of your expenses to get you through to the next web project if you hit a dry patch. Most web design companies will charge a monthly fee to their clients for ongoing hosting and maintenance. This can add up if you have a growing number of loyal clients over the years paying for hosting. For some web agencies, hosting and maintenance alone can bring in a six figure income.
This deal can often benefit clients as well, as they can turn to you web for help if they run into any hosting issues. Dealing with large hosting firms can be challenging and time consuming and involve a steep learning curve. Many business owners prefer to divert these challenges onto their web design firm instead of dealing with it themselves. This service will come at a cost to them, however most businesses consider this added cost well worth it.
Average shared hosting packages may start anywhere from $1.99-$12.99 per month. Hosting cost’s with web developers usually cost anywhere from $25-$195 per month. As the web developer offer hosting, you get to set the price point at whatever price you deem fair to your clients, and at a profit to your business should any time consuming hosting issues arise that you may need to deal with. Reseller hosting packages start at a wide variety of price points, and it really depends on how much bandwidth / disk space you want to purchase in order to re-sell.
Offering hosting packages to your clients can earn you extra income and is a great way to have greater control over the hosting of your clients websites. Having this control can often be of great value when building websites for clients. If you create a website for your clients, and they sign up with a third party hosting company, you won’t have any control over any hosting issues they may experience, and you will need to contact their hosting company to get the website you are creating for them live in the first place.
Dedicated hosting offers the most value to both yourself and clients, however it can be costly. Many web designers opt for shared hosting plans and resell that instead of paying big bucks for a dedicated server. It really depends ware you are at in your business, and what level of value you’d like to offer your clients.