Reseller Hosting: How to Earn good Money
What is reseller hosting? The main idea of reseller hosting is to be a web host who sells reseller web hosting to other (usually smaller) web hosting businesses. Reseller hosting accounts are also used by webmasters who operate more than one website. Lately reseller business prospers, because more people want to be online with their own website and their own domain. For many a hobby turns into a (part-time) business. So, there is a steady stream of people needing more than just a single domain web hosting account.
There are two types of reseller hosting.
1) Traditional reseller hosting
2) Private label hosting
Traditional (bulk) reseller hosting is like a wholesale business. The reseller host buys in bulk aka an entire web server and splits it into small, but medium sized chunks. A smaller web host buys one of these chunks (reseller accounts) and populates it with single domain accounts of normal consumers. The benefit for the reseller host is that he has only to support one customer while the smaller web host deals with each singe domain customer. The smaller web host who buys the reseller account has the advantage not to worry about the technical side of the business as the reseller web host is responsible for the server health and maintenance.
Private label reselling is a step on top of traditional reseller hosting. With traditional reseller hosting the reseller host’s identity is not hidden. Everyone can easily identify the real web host. With private label the identity of the reseller host is hidden and the reseller (smaller web host) appears to be owner of the server. This tactic is often used/needed/required to make a different impression marketing-wise. Many consumers do not want to deal with small web hosting businesses. Web hosting businesses know this and disguise the fact that they are using a reseller account.
So, where is the money in reseller hosting? Is it on the side of the reseller host/server owner or is it on the side of the smaller web host? It depends on the business model and overall pricing scheme on both sides. For the actual reseller host the bigger profits come in when the cost for system administration and co-location are spread out across more servers. For the smaller web host the big profits (on a smaller scale though) come in if he can add as many single domain accounts onto a single reseller account. Hereby is to consider that if the smaller web host aims at the bottom end of the market in regards to price, it is much more difficult to become profitable. I have been able to use a $35/month reseller account and load it up with 8 single domain customer accounts paying me a combined $320.00 per month. And I am sure that this is by far not a record.
Check out Lunarpages for (currently) $5.00 reseller accounts. This is a great and almost risk-free way to get your hands wet in the reseller arena and make money on the Internet.