Is Reseller Hosting profitable
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Is Reseller Hosting profitable? It’s a very good question and one that most reseller hosts would have asked themselves before purchasing Reseller Hosting
The simple and short answer is yes. For example, our Reseller Enterprise package is £29.99 a month and allows you to host fifty websites on it… that’s £1.66 a month per website! From that you can probably work out relatively quickly whether reseller hosting is going to be profitable for you.
One thing to consider over and above profits with reseller hosting is that it also enables you to develop a strong relationship with your clients, since web hosting is a recurring revenue stream. This creates the opportunity for both up-sells and cross-sells.
Let’s look into whether reseller hosting is profitable in a bit more detail:
Is Reseller Hosting profitable
How much does self hosting cost?
You could go it alone in hosting. That is you could do some research, rent an empty rack from a colocation partner, purchase some server hardware and install some web server software. There really is no barrier to entry to web hosting. Sure you need a bit of technical know-how but the hardware and server rack space is freely available.
In terms of what self-hosting costs, the following is an estimate of what you could expect:
- Data Centre costs: c. £2k per rack per month.
- Server hardware: c. £5k per server (one-off cost, though will need periodic hardware revisions).
The other cost to factor in is customer support. When you first start out it may just be you. You’ll be working 24/7 and you’ll quickly realise that you need some additional help. With this in mind, factor in support costs from the start, whether you are looking to outsource elements of your support or directly hire support staff
How much does reseller hosting cost
This depends on a number of factors:
- how much space do you need
- how many sub-accounts do you need for you clients
- do you need SSL certificates
- do you need a particular type of webserver
We have a number of Reseller Hosting packages. Our Reseller Enterprise package for instance, is £29.99 a month and enables you to host fifty websites on it, with a total allowance of 100 GB (Gigabytes). That’s 2GB per site and 50 client websites in total for less than £2 per site.
The other thing to bear in mind with reseller hosting is hidden costs. Search engines such as Google expect you to have an SSL nowadays in order to be listed on their first page. We include free Let’s Encrypt SSL certificates on our Reseller Hosting but some companies charge for this.
What can I expect from reseller hosting
Firstly it’s worth pointing out that reseller hosting provided by one company could be completely different from reseller hosting provided by another company.
It’s very tempting to look at the cost of reseller hosting and to use that as the primary way of selecting your provider. Don’t fall into this trap. As the opening statement laid out, not all reseller hosting is the same.
Ask yourself if selecting a reseller hosting provider based on price really makes good business sense. Sure you might save some money each month but like with any business, a cheaper provider is likely to be reducing spend in areas in order to offer cheaper products and services. With reseller hosting this is generally the support department since the physical costs of hosting (data centre and hardware) are relatively similar across the board.
If something were to go wrong with your reseller hosting service, do you really want to be waiting for hours for a support response for a cheaper provider? Imagine how many screaming customers you’d have on the phone during this time!
Clook was set up way back in 2002, with an absolute focus on customer support:
- All our support team are experts. We don’t hire script readers.
- Fast ticket resolution times. We’re not just quick to respond to tickets, we also resolve the issue quickly
- We don’t charge for “premium support”. All our customers receive premium support at no additional cost. Whether they are on a £5 or a £5,000 a month hosting package.
- We don’t lock you into long term contracts, which ensures we focus on customer support and reliability to retain your business.
At Clook we can absolutely guarantee you’ll be delighted with our Reseller Hosting We’re so confident, that if you’re not you can have your money back.
How much does my time cost?
Maybe you’ve considered that there is a cost attributed to your time or maybe you haven’t. If you haven’t I’d really recommend that you spend some time evaluating what your time is worth. You can evaluate this with the following tools and articles:
Once you’ve got a number you can use this to work out whether reseller hosting is going to be profitable enough for you. You should also factor in what support time will cost you if you decide to outsource your support or directly hire support staff.
What sort of profit can I expect from reseller hosting
This all depends upon what you will be charging your customers and how much your time/your support teams’ time costs.
Using the package example above i.e. Our Reseller Enterprise which is 50 client websites in total for less than £2 per site, it’s fairly easy to work out that you can make a profit with reseller hosting and be competitive on price.
Most of our reseller hosting clients tend to offer related services. SEO, web design, PPC and other I.T. related services. Web hosting for them is a bolt-on, that gives them a regular income stream and more importantly, helps to develop the relationship with their clients. Reseller hosting is not simply about creating an additional income stream, it strengthens your existing ones too.