Is becoming a reseller worth it?

Marc A

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#1
Hello!
Is purchasing resellers worth it, or should you just buy a dedicated server and spend 1000+ to setup your hosting?
Thanks,
Marc
 

RDO Servers

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#2
Hello Marc,

Reseller hosting is a great way to get started. Web Hosting is a very competitive industry and you should not expect to turn a profit for quite a while. Keeping experience sea low is key to making sure you can survive until your profitable.
 

Maxoq

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#4
Maxoq
What purposes of buying a reseller hosting? to host websites or sell for money?

Why don't we buy a VPS or a dedicated and split it into parts for selling, I think it's a idea.
 

novice143

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#32
novice143
I agree with this. It is a good to start not in total scratch so you can be familiar with this and see if you can start fresh from this very competitive industry. You also consider that you can keep with the competition. It is all about calculating and managing risks.
 

Marc A

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#6

LJSHost

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#8
Always go with the reseller imo. Nothing worse than investing in your own hardware and the months start ticking by with no customers or revenue.
You can always upgrade easily to your own VPS or dedicated when you have the customer base to justify it.
 
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#9
If you have the capital to buy a dedicated server you can do so...and secondly you most have the knowledge of the business. You can buy a dedicated server and sell shared hosting plan, vps plan and shoutcast plan. but if you have less capital you can start with reseller on shared hosting and reseller on shoutcast and watch the market...If its goes well for you u can then upgrade to a dedicated server. Hope this helps You.
 
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#11
I wrote an article about that on my blog a few weeks ago, the most important thing when choosing a reseller hosting is to be patient because if you want big profits just reselling is not going to be easy.
 

LJSHost

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#12
LJSHost
It's not just reseller hosting, even if you begin with your own VPS or dedicated being patient is the key to success and profits. A reseller account just provides a cheaper entry point so you will see profits sooner compared with a VPS or dedicated.
 
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#13
That is a great step to start with, especially if you are new in the hosting industry.
You will need that to minimize cost, and to understand some basic functionalities.
From there you can then grow.
Even though there are a lot of limitations as a reseller, because you won't have full control of the server,but you will still be able to manage your clients with minimal problems.

Try starting with a host whose support is ready at anytime to assist you.
 
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#14
Glad you decided to go for a re-seller account. A dedicated server does offer more multi -purpose and more feature but has the down side of cost. With a reseller account you benefit from your providers license and other feature with out adding more expense to your hosting bill. This you can provide to your customer at no charge or charge them to make extra income. What I recommend is to find a provider who is whitelabel and you able to customize your plan at any moment.
 
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#15
Starting with a reseller is a great way, it will be difficult because you won't have anything than providing basic support for your clients. for every client you will be asking your reseller provider to do it but it is better than losing money and give hope fast because hosting business is very competitive.
 

Dewlance

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#16
I was started my company with Reseller hosting because of on that time I was not even able to afford for hosting billing software and it was really hard.

I still get inspired when I think about my past when I was work for 14 ~ 16 hours a day to establish my company.

I was not even know what is use of VPS, etc but Reseller hosting gave me experience and knowledge so its really worth. Without reseller hosting I think it will be impossible to start company for beginners or people with low budget.
 
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#17
Hello!
Is purchasing resellers worth it, or should you just buy a dedicated server and spend 1000+ to setup your hosting?
Thanks,
Marc
Yes, you should buy a dedicated server and spend 1000+, but only when you have the need for it. If you want to start offering web hosting, then probably reseller, since those plans usually include cPanel/WHM + WHMCS so you can cut down like $50 licence fees for those, and you don't need to manually install them, and many reseller hosting plans come with extra features like backups, automatic CMS installer and more, for which you need some time installing and money, cause none of this is free and exactly 1 click installation :boxing: .

But when you get a decent amount of clients, so you know that you won't go bankruptcy with buying real servers, then do it. There are many advantages to getting a dedicated server, such as you can offer better prices, have root access etc.
 

Floxera-Jose

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#18
I don't think a reseller account is good for start a hosting business.
I think reseller account is good for design companies, web design freelancers, developers, people that need to host several different websites, but not to "start a business"...

If you want to start a web hosting i suggest a VPS until you have enough customers to a Dedi Server.
You have more control of the WHM/VPS, you can create your own TOS and rules, decide many things that in a simple reseller plan you can't and a VPS also gives you more responsibility in all the aspects of the operations IMO.
 
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#19
techman
I have tried running a hosting business as a beginner on VPS, and would not recommend it. Here are my pros and cons:

Reseller hosting
Pros:
  • Easy to manage
  • WHM/cPanel license is included in the plan in most cases (you save $10-15 per month);
  • WHMCS license is included on fewer plans, but still on many (you save $10-15 per month);
  • There are usually a couple of paid cPanel addons (you save $10-30 per month), such as Softaculous, Site.pro, Let's Encrypt SSL installer and more;
  • You can create your own nameserver addresses with only a few clicks;
  • You don't have to worry about server level security updates, OS version etc;
  • Reseller infrastructure is usually more powerful that some cheapest VPSs
  • cPanel/WHM and WHMCS is often supported, so you'll get support from the reseller hosting provider.
Cons:
  • No root access (most beginner probably don't have the need for it anyway);
  • Less control over... everything;
  • There are often restrictions on what are you/your clients allowed to host.

VPS
Pros:
  • More allowance with installing things, uploading specific content;
  • Depending on specific host and platform, may be upgradable or you can add RAM or disk space with a few click if needed.
Cons:
  • Not as easy to manage (specifically for beginners);
  • Takes some skills or money to get custom nameservers;
  • If you want to offer competitive hosting to others, you'll need a decent control panel, billing system, and presumably control panel add-ons as well - that all together roughly $40 per month;
  • Depending on host, you'll have to deal with backups yourself or buy some kind of automatic backup thing from them);
  • You're alone with your installed software (like cPanel and others) since it's your fault when something breaks.

Those were some pros and cons that came to my mind. There's definitely more of those; I'll add them if I happen to come across some more.
 
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#20
This made me curious how much do you really earn from reselling? I think i want to start reselling too while i blog.
 
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#21
Waqass
I also want to know what others are offering as after two years the profit for me is still hovering around 100$ per month. It's just not enough the effort you put in. The industry is very competitive and margins are diminishing.
 

jtahil

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#22
I have similar question to this concern. What is the purpose of buying a reseller hosting? Does it generare a numerous amount?

If VPS is the easiest way in regards to this, why do some people consider reseller hosting?
 

schrudee83

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#23
I actually don't have any idea about reseller hosting, but i'm interested in doing online business. What does this usually do?
 
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#24
There are thousands of web hosting providers. But, not all of them as good and reliable. Starting a web hosting reseller business is not easy as you imagine.

We all know that you can just sign up, and even, start a free reseller account. The problem is that many of them are using special technics, to get your hard-earned money, and cancel your account anytime they want. First of all, web hosting reseller is a good business to make money. As an example, iPage and other providers started as a web hosting reseller service. And now, they're one of the biggest companies in the web hosting industry.

It's really a good opportunity to invest in, but as any other business type. Web hosting reseller has its own issues that you should know before starting.
 
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#25
Hello!
Is purchasing resellers worth it, or should you just buy a dedicated server and spend 1000+ to setup your hosting?
Thanks,
Marc
If you are going to be a reseller, make sure the company whose service you are dealing with is reliable.You should be ready to take up the responsibility of satisfying the customer because you now become the face of the business.I also agree that you should buy your own dedicated server because you will now be in control and can handle issues like customer service directly.I am assuming that you meant buying a reseller hosting in order to sell and not for the purpose of hosting your own website.Is that what you meant?
 
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#26
I would have to say that I don't think that purchasing resellers are worth it at all. In fact, it is a big waste of time as well as money. Much easier to just get the server and set up your own. That is just my personal opinion on this. You should go with your gut on this one. Really think it through. Good luck to you.
 

24x7serverman

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#27
Reseller hosting service do have the money in it, no doubt. You should have the customers which you can host on the reseller server.

If you are new to the hosting field and you would like to manage your customers by third party then you can have the reseller service. Your client will feel that you have your server and managing it by yourself.

Reseller service provides you the platform for selling the shared hosting services to your clients or when you would like to host multiple accounts with their separate panel on the same server then you can have the reseller service. Under it, you can create your own packages and can assign them to your accounts as per the requirement of the account

Here are the detailed explanation why to choose the reseller and why to have VPS -
https://forumweb.hosting/14036-reseller-or-vps-hosting.html
https://forumweb.hosting/15837-when-should-i-use-reseller-hosting.html
https://forumweb.hosting/13287-choosing-a-reseller-account.html

Hope this will help you. :)
 
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