How to start domain hosting business

Starting your own hosting business is one of those things that seems so simple, you wonder why everyone isn’t doing it. While there is plenty of competition, there is plenty of room to grow. Starting your own hosting business can be cheap, easy, and safe. Since every company, and many individuals, need their own websites, providing hosting services can generate significant returns.

If you are a company that deals with IT infrastructure or web design, adding a hosting service to your existing platform can bring in new revenue and clients to add sustainable growth to your business. A hosting company can bring in new revenue streams and products to offer upcoming clients if you are just getting started.

But why bother starting your own hosting business when your plate is already full and your business is running fine? 

3 Reasons to Start a Hosting Business

Here are some of the best reasons to start offering hosting services to clients:

1. It’s Easy

Really, the web hosting provider is doing most of the legwork. They handle the technical difficulties that scare most people away from the industry, and keep services running smoothly. All you have to do is keep your individual clients happy and provide the right hosting solutions for them and their organization. Once it’s running, most websites tend to keep running without much effort or expertise.

2. Additional Revenue

Starting a hosting business can put extra padding in your pockets without losing your day job or adding unreasonable amounts of work. Aside from the initial setup and registering new clients, you can simply watch your bank account grow. An overhead price that covers your costs and brings in decent cash flow keeps costs and prices straightforward for you and your clients.

3. Great Upsell for Digital Firms

If you already run a digital business, especially web design, then throwing hosting into your package makes your service more “all-inclusive.” This could give you the edge you need over competitors and can make you a bigger and stronger organization. By offering hosting to your clients directly on your own platforms, or without having to manage separate users on separate hosting providers, you simplify things like account management and software solutions that must be installed on client machines.

To top it all off, it’s easier than you think to get started. In fact, you can have your own hosting business up and running after only 5 simple steps.

How to Start Your Hosting Business in Five Easy Steps

how-to-start-hosting-business

1. Find Your Niche

In the web hosting business, competition is fierce. You won’t be able to compete with the giants of the industry (at least not yet), but you can still target a specific niche group and start growing from there.

It’s essential to offer something unique to separate yourself from other companies and make your organization more distinct. That could be an additional service like web design, a competitive or revolutionary pricing plan, or maybe you’ll target a specific community (like webcomics or homemade jewelry stores).

It’s important to separate yourself from the crowd and cater to unfulfilled needs. By finding a great niche, you can offer custom solutions that fulfill their needs and aren’t offered anywhere else.”

Whatever your niche turns out to be, it’s necessary to figure it out first before you get into your hosting business’s nitty-gritty. This will give you the upper hand against competitors and help jump start your business by offering services to a specific industry.

2. Research Competitors

Next, you want to separate yourself even more from other hosting companies within your niche. Ideally, you will want your offering to be so unique that you’ll have no competition… but that’s rare. Even if you’re specializing in your market, you’ll still have more than a few competitors.

Research competitor business models and see what they’re doing that works, and where there’s room for improvement! Analyzing your competitors is the best strategy for discovering ways to outdo them.” 

This will give you an advantage when providing new services, looking for clients, and identifying marketing techniques and product offerings. Because the hosting industry is fiercely competitive, it’s important to gather as much information and data as possible to separate yourself from the crowd.

3. Choose Your Server Type

Assuming you’re reselling server space from a hosting company like Liquid Web, as opposed to building your own server in your garage, you still have a few different options to choose from.

As the name suggests, a dedicated server is a server dedicated to a single client. While the features are extensive, it’s the most expensive type of server. A single machine provides more robust features for larger clients, including the ability to have more security or HIPAA Compliant Hosting.

A dedicated cloud server is a great tool because you don’t have to worry about scaling your server or infrastructure — even with an unexpected spike in traffic, performance remains consistent. While not as expensive as dedicated hosting, dedicated cloud hosting falls somewhere in the mid-range, in terms of pricing.

A Virtual Private Server is a single server (cloud or otherwise) that is partitioned to suit multiple systems. While space is limited, it’s easily the cheapest option, and a good place to start for beginners in the hosting business. This will allow you to host multiple clients on one system to keep costs slow. But features may be more limited than other types of servers.

Cloud Servers, or public cloud hosting, is a highly available and scalable cloud solution that pools resources from across multiple servers using virtualization. This is optimal for websites with unpredictable traffic, fast-growing startups, or small eCommerce portals.

There is no one “best” server type. Instead, you’ll want to choose the one that fits together with your niche and business model.

It’s best to stay away from shared hosting for your infrastructure, as it won’t provide the performance, security, or scalability you will need to grow.

4. Create a Business Model

Now let’s get into the “business” part of the hosting business. You’ll need to fine-tune the details of your niche marketing as well as invent your brand. 

In this stage, you need to finalize plans for the following:

This includes your company name, logo, and tagline. Be aware of which domain names are available since you’ll inevitably need to build a company website. Your name should be memorable and easy to find.

Pricing Plan

Hammer out the details of your pricing plans to find that sweet spot between how much the hosting infrastructure costs you, and how much your clients are willing to pay for your services. This can also play into your niche marketing if you’re trying to undercut the cost of your competitors.

As with all digital industries, your web hosting company’s website is it’s the main storefront, so spare no expense in making it top notch. The quality of your website can reflect the quality of your services, so make strides to make it the best it can be.

5. Launch Customer Service and Support

Customer service and support is optional in theory, but in reality, it’s so important that it’s practically a necessity. Consider handling customer service and support as part of your hosting business.

In the web hosting business, part of your appeal to potential clients is that they don’t need to worry about the technical concerns. Even for hardware engineers, these tidbits can get frustrating, so you can imagine the anxiety it causes laypeople. Clients rely on you to keep their websites and services up and running without a hitch. 

If you aren’t able to provide this level of customer satisfaction, clients may choose to host their websites somewhere else.

Customer service should be a top priority for your new hosting business. That’s why we here at Liquid Web invest so much into our Support Team so they can be the Most Helpful Humans in Hosting. Our customer support is what endears us to our clients and keeps them loyal. 

Features like our 59 Second Guarantee and 24/7 access not only set us apart from our competitors but also turn what could be a negative customer experience into one of our company’s greatest strengths. 

When you are hosting your infrastructure with us, your clients gain the benefits of our support programs, and it can take some of the load off your back in the process!

You’re Ready to Resell Hosting

Now that you know the 5 steps for forming your own hosting company, you can get started today! You have found your niche and researched competition, selected servers, and defined pricing plans, and understand the need for customer service, so you can start reselling web hosting.

Start Reselling Hosting Today

Liquid Web has a Reseller Program that is a perfect fit for those looking to resell hosting. Or download our Hosting Buyer’s Guide to learn more about your hosting options.

Are you a web developer who want to expand your business by offering hosting services to your clients?

Offering web hosting services to clients is a win-win situation for both you and your client.

As a developer, you can make recurring revenue by selling web hosting space to your clients. Your clients don’t have to set up a web hosting account on their own. This is especially helpful to your non-techy clients.

The best thing is that in order to sell web hosting space to your clients, you don’t have to start a million-dollar company like Bluehost or Hostgator.

Rather, you could sign up for a reseller hosting service, which is typically a VPS or dedicated server and start renting hosting space to your clients.

In this article, we’ll show you how to start your own web hosting business with reseller hosting. We’ll also compare some of the best web hosting companies that offer reseller hosting services and help you decide which one is best for your needs.

But before we begin, let’s have a quick look at what exactly reseller hosting is.

What is Reseller Hosting?

Reseller hosting allows you to sell white labeled hosting services to your clients under your brand name. It’s the best option for those who want to get into the hosting business without investing in expensive resources to manage servers and hosting infrastructures.

With reseller hosting, you can sublease your hosting space to your clients. Resellers buy a hosting service, typically a VPS (Virtual Private Server) from a hosting provider for a wholesale rate and sublease to others by configuring and dividing the hosting space per individual client needs.

Things to Consider Before Starting Your Hosting Business

There are several things to consider when you start your hosting business.

  1. Not every reseller hosting service is created equal. Make sure you choose the right reseller hosting provider that best suits your needs
  2. Choose a provider that allows white labeled reseller plans, which means your customers would never realize that they’re on a reseller hosting service.
  3. Make sure that the web hosting company offers ongoing technical support for your clients. This is extremely important if you don’t want to have your own support team and customer service.
  4. Decide on how much you want to charge for your plans.

Let’s take a look at a few reseller hosting providers and see which one is best for your needs.

HostGator is a powerful web hosting service provider that offers great reseller hosting plans. The pricing is categorized under 3 different plans.

  • Aluminium
  • Copper
  • Silver

Depending on the pricing they offer up to 140GB disk space, unlimited domain names, free SSL and up to 1400 GB bandwidth. It also offers 99% uptime guarantee, private nameserver based on your domains, Free WHMCS Client Management / Billing software with each plan, WHM control panel, cPanel, premium support and a lot more.

SiteGround offers the GoGeek plan which is their only plan for reseller hosting. It offers 30GB web space, unmetered traffic, an unlimited number of sites, and 24/7 reseller support.

Unlike HostGator, SiteGround charges you based on the number of hosting credits you want to purchase rather than hosting resources allocated to your account. The more bulk orders you make, the cheaper the reseller hosting plan becomes.

You can start by purchasing as low as 5 reseller credits for $49/credit per year. If you buy 11+ credits, then you only have to pay $42/credit per year.

Since reseller credits never expire, you can use them anytime to launch or renew the account.

The reseller hosting service by InMotion Hosting comes with several plans. And depending upon your plan, you can have up to 8GB Ram, 5 cPanel accounts, up to 6TB bandwidth and up to 5 different IP addresses. Apart from that, you can also have free SSD drives, billing software, cPanel & WHM, DDoS and Malware protection and a lot more.

If you upgrade your plan to the Reseller VPS plan, you can enjoy more amazing features and take your performance to the next level.

A2 Hosting is another popular reseller hosting service provider that offers 4 different pricing plans. You’ll love its amazing speed and friendly support. It offers up to 200 GB storage, free SSL and SSD, WHM control panel, Free WHMCS and a lot more.

For more details on reseller hosting providers, you can check out our complete guide on best reseller hosting providers.

Which One is the Best Reseller Hosting Company

We believe that HostGator is the best reseller hosting service for a few reasons.

  • It offers affordable reseller hosting plans, so it’s easy to make a profit out of your reseller hosting business.
  • You can control the resource allocation based on your client’s needs.
  • It offers free WHM and billing software and a lot more.

Starting a Reseller Web Hosting Business (Step by Step)

Follow the exact steps given below to set up a reseller hosting business.

In this tutorial, we’re using HostGator reseller hosting plan.

Step 1: Get Yourself a Website for Your Web Hosting Business

If you don’t have a website yet, you’ll need to get one for your web hosting business. You can go to HostGator and sign up for a web hosting account.

For a detailed step-by-step guide, check out how to start a website from scratch.

Step 2: Choose a Reseller Hosting Plan on HostGator

If you already have a website, the next step is to choose a reseller hosting plan from HostGator.

Go to HostGator and choose a reseller hosting plan. As you’re getting started, you can sign up for their basic plan called Aluminium. As you grow your business, you can always upgrade to a better plan.

Once you select a reseller hosting plan from Hostgator, you’ll be asked to enter a domain name. If you already have a domain you can use that otherwise just select a domain name by typing in the search field. You can also select the extensions next to the domain field. You can use our domain name generator to find a domain that suits your business.

Step 3: Change the DNS

If you’ve registered your domain name with Hostgator while signing up for your reseller hosting, then you can skip this step.

For those who have registered the domain name with another domain name registrar, then your next step will be to change your DNS.

This process will take from 24 to 48 hours before your site starts resolving to the Hostgator server.

Step 4: Create Web Hosting Packages

Next, you can create packages, also known as pricing plans. The recommended practice is to create at least 3 different pricing packages. Make sure you allocate specific resources, like disk quota, monthly bandwidth, max email accounts, etc. to each package.

You can create your package by logging into your Hostgator WHM (Web Host Manager). Once that’s done, you’re ready to create a new account. You can do that under the Account Functions in your Hostgator WHM. Fill out the details here and you’re good to go.

Step 5: Upload a Website

Use an FTP client or cPanel to upload your client’s website to your reseller hosting account.

Keep in mind that you might want to customize the web hosting interface before you handover the account credentials to your customers. You can replace HostGator logo with your logo and make the necessary changes to white label your web hosting company.

That’s it! We hope this guide helped you create a web hosting company with ease. If you liked this article, then read our review on Hostgator.

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Written by Jane