How to Make Money Online With a Web Hosting Service
Estimated reading time: 5 minutes
Table of contents
Web hosting is the foundation of any online business because no website can exist without a host. The benefits of web hosting are numerous.
The host stores a website’s databases, provides a launching pad for marketing messages, and keeps the site online and accessible 24/7. But can site owners actually make money from their online hosting? Read on to find out!
Become a Webhosting Reseller
The easiest way to start making money with a web hosting service is to start reselling it to third parties for a small profit.
You don’t have to be a tech guru to do it. It is as if you “rented” a larger apartment and sublet some of the premises to third persons.
Should they experience any technical issues, you forward them to your web hosting provider and then forward the replies to your clients.
How Much Does It Cost?
It doesn’t cost much to become a web hosting reseller. You can start your reseller hosting business for about $2 a day. Few other online businesses require an initial investment of about $60 per month.
As an added benefit, the company whose hosting packages you are reselling will provide your support agents with the necessary technical resources and know-how.
Why Is It So Cheap to Start?
It’s because you’ll be selling a shared hosting space. Each of your customers will be paying a small sum for their share of the server’s resources.
Those who grow bigger will migrate to VPS hosting providers, or maybe they’ll hire a dedicated server.
However, a handful of loyal clients will provide you with a recurring income for many years to come. You can also resell VPS and cloud hosting, but the initial investment will be higher.
What Profit Sources Can I Tap On?
You can resell shared web-hosting plans and make a profit from the difference. You can then use a cPanel to manage your clients’ sites, which is another money source you can tap on.
Finally, you can resell domain names. The current price of a .com domain name hovers around $10/mo, so anything above that is your profit.
SEE ALSO: How to Make Money From Home | 11 Ways
A Step-By-Step Guide to Starting a Web Hosting Reseller’s Business
Here is how to become a reseller of website hosting packages in five easy steps. You don’t have to have a degree in IT or any other special training.
1. Find a Reseller Hosting Provider
There are many web-hosting providers, but few of them provide reseller accounts. Here are three of the best options.
GreenGeeks
This small but rapidly growing company matches 100% of your online business’s energy needs with green power, plus another 200% in renewable energy investments.
Depending on disk space and bandwidth, their reseller packages range from $33 to $68 per month. All plans include:
- GreenGeeks Managed Support
- 30-day Money Back Guarantee
- Free SSL Certificate
- Free cPanel Migrations
InMotion
The price you will pay depends on your hosting reselling contract. If you sign up for two years, the monthly fee will range from $16 to $40. The premium package comes with unlimited bandwidth and three dedicated IP addresses.
HostGator
HostGator offers three hosting reseller plans:
- Aluminum $19.95/mo
- Copper 24.95/mo
- Silver 24.95/mo
These promotional prices are valid if one signs a 3-year contract. After the introductory period, the rates go up:
- Aluminum $35/mo
- Copper $49/mo
- Silver $70/mo
All plans include WHM & cPanel and can host an unlimited number of websites.
2. Register a Domain Name or Migrate Your Existing One
Once you’ve chosen a provider, you’ve got to pick a domain name for your web hosting reselling business. If you already have one, you can migrate it to your new hosting provider.
SEE ALSO: 4 Tips for Buying a Taken Domain Name
3. Ask for a White Label
After sorting the domain name issue, ask your provider to give you a white label so that your clients won’t know you resell hosting plans.
To do that, they should allow you to register your nameservers with dedicated IP addresses.
Recheck the control panel to ensure your company’s name is the only one to appear.
4. Guarantee 24/7 Support
If you want to keep your clients happy for many years ahead, make sure they are covered by a 24/7 support service.
Your live chat and phone agents must have full access to all resources of the original hosting provider.
5. Employ an Aggressive Marketing Strategy
Ideally, you should target a specific type of website to become your web tenants: travel blogs, life coaching sites, etc.
You will get to know their hosting needs very quickly, and they are unlikely to start competing for server resources any sooner.
You can market your hosting business on social networks, through affiliates, or via SEO-friendly blogs. You can also have other sites showcase your banners and pay them only for the actual clicks they generate.
