What is Reseller Hosting?
Reseller hosting is where one buys hosting space and resells to others. Several web hosting companies allow people to buy hosting space so that they can resell. The main hosting company allocates some disk bandwidth and storage space to a reseller. The reseller then divides the bandwidth and storage space as they want, and then resells. The primary web hosting company does not have any influence on how the allocated disk space and bandwidth are resold. This allows anyone to start web hosting business. The reasons for web host reselling can be a new business, as a source of additional revenue for your company or if you are managing several small websites for your clients.
Who are Resellers?
Web developers, designers, and small businesses are the one mostly involved with this type of web hosting. They are driven by the desire to have their personal hosting space, but since they have other small clients, they take the opportunity to buy a large chunk of hosting space and storage and use it to cater to the needs of their customers/clients. The other benefit is that it allows them to have an easy time managing several web accounts from a single control panel. They do not have to worry about server issues as the main hosting company takes care of them. Web developers, designers and even consultants that are involved in system integration prefer to be resellers as it is in line with core online business.
The Benefits of Reseller Web Hosting
If you deal with small clients that have simple websites that are not performance intensive, then reseller web hosting is good for them. Most of them do not have a lot of money to spend on web hosting resources that they cannot utilize to full capacity. As a web developer or consultant, offering the reseller web hosting option will serve their needs. Therefore, if having multiple clients, this option of web hosting is cheaper for your customers/clients.
Managing reseller web hosting is easy. Most web hosting solutions come with software that handles billing, domain selling, and auto installers that require very minimal attention from the client. Therefore, the client does not need to worry when it comes to scalability.
Web hosting companies are aware that the resellers also want to make money, and that’s why most offer a discount for web resellers. Most discount rates are at 50%. With such an offer, resellers can make profits and even run their websites with no expenses. The discount offers sometimes are good that the reseller can offer their services just as the main web hosting does to those that but hosting space from them directly.
As a reseller, you do not have the responsibility of maintaining the server. All these are responsibilities of the web hosting company. In the case of a downtime, you do not have to worry about it as the hosting company will take care of it. Some of the issues are too technical to handle, and the dedicated server owners will handle such problems without passing any cost to you.
Though the benefits of being a reseller are many, some situations will need granular and comprehensive server control such as that that dedicated servers offer. This may limit providing certain services. Therefore, before taking a client or hosting a website on a web reseller host space, carefully analyze before opting for this option.
Another disadvantage is web reseller host may not offer a lot of flexibility in the long run especially when hosting a website on a long-term contract. Some sites may be small in size at the start and continue growing with time. In such a situation, the reseller will need to get more server resources. Most of these agreements offer fixed services and will limit growth or may be costly is the business shrinks.
Factors to Consider
One of the factors, why you should consider reseller hosting, is it very scalable. However, this depends on the agreement that you have. If the contract is fixed, then there may be limitations that may cost you when you need to scale. However, if it is flexible, it will offer flexibility and you can scale as needed while incurring very minimal costs. If the reseller provides options that are more flexible, then it will be good when your business experiences growth. When things are not good, you can also scale down, which reduces the hosting cost.
Also, when considering this web hosting option, it is advisable to read the agreement carefully. A long-term contract may tie you and fail to deliver in future. Things to look out for include data storage and bandwidth. Read the terms and conditions that are tied to unlimited marketing campaigns. Some of them have conditions such as “fair usage limit” or something close to that.
Since most small websites are just looking to host small websites with few database connections, they overlook future needs. Therefore, look at the number of database connection that the web reseller if providing. The higher the number of connections for a specified period the better.
Does Web Reseller Host Good for You?
Answering this question will entirely depend on the needs of your website. If you have many small websites that are not resource intensive, then it will be the best option to choose. However, for large websites with lots of data that requires large storage space and requires high-performance servers, reseller web host may limit your website. This is for web developers, designers and consults.
If you have a small business with limited resources, seeking the services of a web reseller host will suit your needs. You do not have to worry about all the technical details that come with managing dedicated servers.
This type of hosting is best suited for small websites and businesses. The benefits are mainly due to the low costs that this option offers.