Reseller Hosting - Buying a reseller hosting plan or dedicated server and starting your own company that sells web hosting to end users.
Longer Definition of Reseller Hosting
Reseller hosting includes selling any type of web hosting but usually refers to smaller hosting companies that buy one dedicated server or a small reseller hosting plan and then setup a hosting company to sell hosting to other people. Even big companies like HostGator or BlueHost who have thousands of servers are doing the same thing as the small guy just on a larger scale.
Advantages of Starting A Hosting Company
- Recurring revenue...
- Huge market as everyone needs a website :)
- Easy to find a niche with little or no competition.
- Small hosting companies CAN compete with large ones.
- More articles on why should I start a hosting company?
Example of Making Money With Reseller Hosting:
You buy a reseller web hosting package with 1,000 MB disk space and 1,000 MB bandwidth. You then break this into 10 separate accounts with 100 MB disk space and 100 MB bandwidth each and then you sell these smaller packages to your customers. So if you sell each of these packages for $10.00 dollars a month you would be making $100.00 and your only cost is the reseller web hosting package which cost $15.00 a month. So your total profit would be $85.00 a month. To summarize, reseller web hosting is the act of buying a large web hosting plan or dedicated server and then breaking it into smaller parts to resell to your clients. This definition is rather simple but you now understand the basic meaning.
