Usually, when buying a web hosting package, you receive a single account that you can host one or more websites on. There’s a single login, one cPanel facility and it’s designed just for one purpose. There’s no easy way to lock off part of the access and resell the hosting service because people who bought the package from you would often have access to all your sites too.
Web hosting reselling is designed to make it easier to package up and sell a hosting account to a client. The client can have access to their own setup, SFTP login, cPanel too, and add one or more domains under that hosting package.
Now that it’s clearer what reselling is all about, let’s look at some of the reasons why it’s a great choice for your web design business.
#1. Recurring Monthly Revenue
While web design services are difficult to repeat, unless you have the client on a maintenance deal, web hosting is required every month. When offering hosting packages through reselling, you’re free to offer competitive pricing that beats what they can buy on their own.
Whether you choose to charge a monthly payment or bill a year in advance, the regular income is something that you can rely on far more than a possible redesign fee. You cannot have a site without web hosting. It’s also problematic to transfer the hosting to another provider, especially when they’re not technically savvy. It may lead to downtime too – they’re more likely to stay with what works and not mess with it.
#2. Great Solution for Non-Technical Clients
Clients don’t have the time or the know-how to deal with web hosting on their own. Most don’t really understand their website, let alone what a web host is and how to use one.
Having your company as a familiar point of contact should they experience a hosting problem is worth the price. They’re not dealing with technical support speaking a language they don’t understand, filled with confusing jargon.
It’s stress-free for them and easy for you to manage. You’re doing that anyway at a distance because it’s managed hosting, which requires almost no interaction. Just running an occasional backup is sufficient.
#3. Uses Existing Knowledge
As a web designer or coder, you already possess a good working knowledge of web hosting from the front-end to the backend. Selling that using a reseller package by making money backed by your technical knowledge only seems right and logical. Why let that knowledge be underappreciated when you can profit from it?
#4. Passive Income
Everyone loves a bit of passive income. Here, the more web design clients you have over the years that stick with your white label web hosting, the higher the monthly revenue.
There’s a fixed level of costs associated with most reselling accounts, so the profit multiplies rapidly once you’ve covered the monthly cost of the reseller account with a stream of hosting-related income from clients. Then, it’s all cream from there.
#5. Customise the Hosting Packages
You can create a series of hosting packages to suit different clients, industries or custom requirements.
For instance, you can create the following:
- Basic client account for a single website, 5 email addresses, 50MB of file storage and 1GB of bandwidth.
- Superior client account for multiple websites, unlimited email addresses, 500MB of file storage and 5GB of bandwidth.
- Duplicate the packages above but include a content delivery network to speed up hosting around the world
- Break packages up by industry – entertainment sites require far more bandwidth than small local businesses
#6. Get Used to Selling Products, Not Just Services
One of the bottlenecks to growth with web design is the inability to handle more than a set number of clients. Most design clients only need a new site designed every 1-2 years, but with changing management, they don’t always return. Growing a web design studio is difficult to do; most don’t get much larger than 5-10 employees at most.
The main issue with this type of business is non-repeat services where referrals are hard to come by. It’s necessary to keep marketing to find new customers. The business isn’t built around creating products that can sell to hundreds or thousands of customers. The ‘build it once, sell it many times’ model isn’t common with web designers who don’t think that way.
When selling web hosting and domain name registration/renewal too, it gets designers used to the benefits of selling products. It’s an easier way to dip their toe into these waters without creating a product and trying to find a market to sell it to. This builds confidence to move more towards products like WordPress themes marketed on ThemeForest and not only selling individual web development packages.
#7. Avoids Working with Lousy Hosting
Being forced to work with a client’s pre-existing web hosting can cause headaches. If they’re not using cPanel or their web host has a surprising amount of downtime, you can get blamed for it. Dealing with an unfamiliar web host only means wasted time and headaches as a web designer.
When moving a client over to your hosting, you know how to get everything set up for them quickly. Everything is familiar and fast. You’re also able to explain or show them how to do something because you know all the tricks.
#8. Data Backups Are Reliable
While backing up client sites to the cloud using a WordPress plugin is never a bad idea, a web host that automatically performs backups provides reassurance. Should the site go down, your client will be calling you up anyway to help resolve the problem. It’s best to have the site backed up regularly just in case.
#9. Superior Security
An inferior web host that the client selected can lead to poor security management. Should a client site get hacked, you’ll get it in the neck even though it has nothing to do with you. Getting a reseller account from a reliable web host that cares about securing their web servers removes enormous potential headaches.
So, what you are waiting for? Get your web hosting reseller account today and start profiting from it.