Many aspiring entrepreneurs consider website hosting when they explore their online business options, but quickly dismiss it because they think they require infrastructure, servers, and data centres. You may be surprised to learn none of that is necessary. In fact, website hosting is one of the easiest online businesses to start!
Being a hosting reseller allows you to get into the website hosting business without having to build, maintain, and staff data centres.
When you purchase hosting for a website, you’re given a package with the server space and services required to support and deliver that website. When you purchase a website hosting package for the purpose of reselling, you’re provided with enough bandwidth and SSD storage to share it with your customers, along with other hosting services.
Check These FAQs Before Starting a Reseller Web Hosting Business
Many steps that are involved with starting a reseller hosting business depend on which hosting company you’re going to use. However, there are standard FAQs that apply to most website hosts you’ll consider. You should know the answer to all of them, and your host should too.
[DISCLOSURE: We may receive compensation for links to products on this website.]
1. Do I need to have “unlimited” hosting?
“Unlimited” hosting usually refers to unlimited storage & data transfer, and/or the number of domains you can host. Make sure you fully understand what “unlimited” means to each host you consider, as they can be different.
I don’t recommend going into the website hosting reseller business without “unlimited” hosting. If you’re constantly harassed by your website host to cut your disk usage and have to turn around and harass your own customers, it’s not going to end well.
My first website was hosted by a reseller who switched to a new hosting company that didn’t offer unlimited storage. Suddenly I was hearing from him on a regular basis, nagging me to cut my usage. It wasn’t a large or particularly popular website and any host should have been able to handle it. It wasn’t long before I found a new host.
Learn more about “unlimited” hosting in, Use ‘Unlimited’ Website Hosting for Carefree Storage and Traffic.
2. Can I sell “white label” hosting under my own brand name?
Yes, reseller hosting should include “white label” options so you can brand the service. The servers should be anonymous and ideally you’ll be able to create your own private name servers (ns1.mydomain.com).
3. How do I manage my customer accounts?
In addition to the storage and services you would normally seek when hosting your website, you’ll need administration tools to operate as an independent business. For example, your customers need separate access to their website, along with services separate from your own. You’ll also need billing options and a way to provide customer service.
4. How do I bill my hosting clients?
Most website hosts that offer reseller options include administration software with invoicing, such as the WHMCS Billing System.
“GreenGeeks includes WHMCS Billing System which is a web hosting billing system that will help you manage, automate and invoice your web hosting customers. You will be able to integrate into cPanel/WHM, eNom and payment processors such as PayPal, Authorize.net, 2Checkout, etc.”
5. Should I charge in US dollars or Canadian dollars?
Most Canadian resellers have their prices in American currency because that’s how they’re charged by their hosting provider. It also makes it easy to compare prices between hosts without the Canadian price appearing to be so much higher than your competitors.
That said, many Canadians prefer to pay in Canadian currency and it may be the reason you’re their final choice. If the Canadian market is one of your primary targets, you should consider it. You can always add a note with the estimated price in USD to level the playing field, and make it easier for your Canadian customers to compare prices for similar packages.
6. Should I have a variety of website hosting packages?
You’ll design your own hosting packages and set your own prices, which will usually look something like this:
Typically, it’s best to offer your website hosting clients as many services as possible (plus blazing speed and outstanding customer service). Most services will be included by your (parent) host, such as apps, invoicing services, security, management (such as cPanel) and backups.
Of these, security is most important (even if your clients don’t know it). Your host – and your hosting service by extension – should include critical protection of the server architecture, preferably at no extra charge.
Some security solutions to watch for are:
- Network monitoring
- Website security
- Firewall
- Brute force detection
- RAID redundancy
- FTPS
- SSL
7. Can I register domain names for my customers?
This is a deal breaker for most resellers, but there are still some reseller hosting packages that don’t provide it. Our host, GreenGeeks provides you with an eNom Domain Reseller account to register .com, .net, .org, or over 1000 other TLD’s. Integrate eNom into your WHMCS Billing System for full automation.
8. Do I have to offer Canadian servers?
Canadians are free to host their website on servers located in any country. However, if they’re collecting information from Canadians then privacy laws regarding data sovereignty apply.
Canadian privacy laws have small businesses concerned about where their website is hosted. Data sovereignty laws apply to any size business that collects information from Canadians, online or offline. The information has to be moved and stored within Canada in order to protect Canadians from foreign laws and policies. If not, the business has to inform the consumer before they hand over their information.
You are responsible for protecting any and all information collected from Canadians by your company, and you will be held liable and accountable for it. For most small businesses, the main concern is where their website is hosted because that’s where the data is collected and stored.
If you intend to host Canadian businesses, offering Canadian servers located in data centres on Canadian soil is a must. The hosting company supplying your reseller services doesn’t have to be Canadian, it just has to have data centres here.
Note: Legal consultation is recommended before you launch your reseller hosting business.
Read more about Canadian Law for Online Businesses: Data Sovereignty FAQs
9. Do I have to provide customer support as a website hosting reseller?
Yes, you’ll support your own customers and your host will support you. Don’t underestimate how much time this takes or how much pressure it can put on you. It’s another reason to choose your host carefully, because you’ll rely heavily on their knowledge and how quickly they respond.
You don’t have to be an expert in the field, but you should be comfortable responding to common hosting questions. You’ll also want to know your features inside & out so you can use them effectively to sell your website hosting services.
The better hosts will have tutorials available for resellers to make sure you don’t miss anything important. You can also go through their FAQs and Help section. Additionally, there are some excellent courses online that take a deeper dive into everything related to website hosting. Udemy, for example, has a long list of affordable web hosting courses for you to consider.
Tip: Start a file of professional, standard outgoing messages that address common problems. It will save you an enormous amount of time and keep answers consistent.
10. Can website hosting be only a part of my business?
The most successful online businesses are those that diversify their revenue sources. Many entrepreneurs add website hosting to an existing business as a secondary source of revenue, usually in a related niche. Others start a website hosting business and then add other sources of revenue.
Combinations may include:
- Website/domain flipping
- Affiliate marketing promoting related services
- Website design
- IT services
- Digital marketing tools & services
- Consultant services
If you’d rather get paid for website hosting referrals, consider joining an affiliate program for a host you love. Most of them pay well and you won’t be responsible for anything other than sending them customers. For more information about affiliate marketing, check out How to Start Affiliate Marketing in Canada.
Have you ever considered getting into the website hosting reseller business? Please share your experience or questions in the comments below, or join us in the Online Business Canada Facebook group.
For weekly inspiration, insights, tips, and resources, sign up for the Online Business Canada newsletter!
7 Recession Proof Online Businesses To Start From Home
Expert help to choose, start, and run a successful online business!
“Almost 200 pages of pure gold…”
GET IT ON AMAZON
Or Other Major Ebook Retailers
——————————————
© CanadiansInternet.com – Content on this website may not be used elsewhere without expressed permission. Thank you for respecting the effort that we have put into our original content.
DISCLOSURE: We may receive compensation for links to products on this website. As an Amazon Associate, we earn from qualifying purchases. Our content is provided for informational purposes only and does not guarantee results.
Melody McKinnon is an internet entrepreneur with 25 years of experience in a wide range of online business models, backed by a formal business education and enhanced by training and mentorship. She has owned or managed both educational and ecommerce websites. Her book, 7 Recession Proof Online Businesses to Start From Home, is available from all major ebook retailers.
Melody has worked with many businesses & brands in a multitude of capacities. She can often be found on CanadianDigitalMedia.com, CanadiansInternet.com, CanadianFamily.net, and AllNaturalPetCare.com, as well as other quality digital publications. Her content has earned reference links from highly-respected websites, magazines and university textbooks.
Do website hosting resellers need liability insurance or is the risk assumed by the website host?
I was thinking of having a free package level with my affiliate ads running on the sites. I guess that’s diversifying too.
Is there an average of how many customers need how many hours of customer service? I guess if I grow slowly I can figure it out as I go along but it’d be interesting to know what resellers experience. Anyone track it?