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Making Money as a Web Host Reseller?

by ECoughlin
7 replies
I'm considering buying a reseller account from Hostgator and wondering what are the pros and cons.

My understanding is that you pay a certain amount per month (Hostgator's bottom level is $24.95) and you get unlimited web hosting that you can resell to others.

Does anyone here do this? Can you make money at this? I thought it might be a good income stream for my website if I branded and promoted it right.

I sure would appreciate any input about this. I guess I just don't know enough about it to make a good decision yet so anything you can tell me would help.

Thanks in advance!

Eunice
#host #hostgator #income streams #making #money #reseller #reseller account #web #web hosting
  • Profile picture of the author LegitIncomes
    Originally Posted by ECoughlin View Post

    I'm considering buying a reseller account from Hostgator and wondering what are the pros and cons.

    My understanding is that you pay a certain amount per month (Hostgator's bottom level is $24.95) and you get unlimited web hosting that you can resell to others.

    Does anyone here do this? Can you make money at this? I thought it might be a good income stream for my website if I branded and promoted it right.

    I sure would appreciate any input about this. I guess I just don't know enough about it to make a good decision yet so anything you can tell me would help.

    Thanks in advance!

    Eunice
    I think a good strategy might be to sell complete websites on eBay, etc...with the condition that they must use your hosting service.

    Some of the more popular sites for sale on eBay are dropshipping sites, ringtone sites, adsense sites, article sites, and of course adult sites...which for me personally I steer clear of.

    You can create these "turnkey" websites at the rate of 1-2 per day, sell them on eBay for a cheap price, and collect the hosting fees.
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    • Profile picture of the author alyoung
      I agree. That is a good strategy to use with reseller account. Depending on how much you charge to host, you only need to host about 5-10 sites a month to break even. Everything after that is profit to you.
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      • Profile picture of the author Mike Shain
        The 3 biggest issues you will face are:

        #1. "Hosting companies" are everywhere with everyone and their brother have reseller accounts along with the real hosting companies that provide them.

        #2. You have to be willing to be in it for the long haul, you can't decide to do this on a whim and then decide to stop in 6 months or a year. That would leave your customers high and dry.

        #3. You have to be willing to handle support requests. The demands for support are much higher for lost cost hosting plans because of the experience level of the people purchasing them. People that have true dedicated servers paying $100+ a month will have far fewer support issues.

        So long story made short - make damn sure this is something you can and will commit to. There are much easier and less time consuming ways to make a profit.

        Hosting companies pay HUGE commissions - some upwards of $100 or so. Why not just refer people to a hosting company listed on cj.com and make bank without the risk or strain on your time?

        - Netpiddler
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  • Profile picture of the author pjs
    Originally Posted by ECoughlin View Post

    I'm considering buying a reseller account from Hostgator and wondering what are the pros and cons.

    My understanding is that you pay a certain amount per month (Hostgator's bottom level is $24.95) and you get unlimited web hosting that you can resell to others.

    Does anyone here do this? Can you make money at this? I thought it might be a good income stream for my website if I branded and promoted it right.

    I sure would appreciate any input about this. I guess I just don't know enough about it to make a good decision yet so anything you can tell me would help.

    Thanks in advance!

    Eunice
    Let me give you some advice... Don't bother with this.

    I spent many years in the web hosting industry (as an employee and as an owner) and it's a very tough business.

    Yes, you can use strategies like ebay pre-made websites, etc. but your profit per customer is very low. Maybe something like $2.50/mo.

    You're better off selling pre-made websites and requiring that the buy have an account with X web hosting company that they buy through your affiliate link. Thats around $100/sale + the profit from the template sale.

    Good luck.
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  • Profile picture of the author ECoughlin
    Thanks so much for your input. Never even thought about selling websites on ebay.

    I was concerned about the support issues which I really don't want to mess with.

    And I didn't realize hosting commissions were so high on CJ.

    So I have a lot to think about here and I really appreciate you all sharing your wisdom on this.

    Those hosting companies make it sound so easy to be a reseller. Glad I asked!

    All the best,

    Eunice
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  • Profile picture of the author Loren Woirhaye
    The hosting WHM control panel is useful for your
    own business though. It will put your websites
    in one place which is totally worth it to me.

    I wouldn't host anybody for $10 a month. The
    support stuff isn't worth the hassle. You can
    profit though by hosting websites you create for
    clients - since you set them up you know the
    interface and you can work more efficiently when
    hosting issues come up.
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