Make Money Online with Reseller Web Hosting

Many people don’t know this but one of the first Internet business I started was a web hosting company. The idea of running a hosting company really appealed to me because of its residual income potential (I love residual income). You only have to set up the client once and as long as he stays a customer, you collect a nice monthly income for no extra work, or so I thought. I build up my hosting service to about two dozen local clients. Eventually, I kicked out all the clients and quit because I got tire of getting phone calls in the middle of the night asking, “How come my email isn’t working?” That was almost nine years ago. It’s too bad that Reseller Hosting Guide (the subject of this ReviewMe review) wasn’t around back then because I could have really used their help and I may still be in the hosting business today.

What Is Reseller Hosting Guide

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Reseller Hosting Guide was launched on June 18th of 2005. It was started by Ben and Joel (the same guys who run Web Hosting Unleashed) because there wasn’t enough resources out there for people wanting to start web hosting companies. Reseller Hosting Guide covers everything you need to know about reseller web hosting. From how to get started, to hiring, to setting up automatic account creation, to monitoring tools, to choosing a host, it’s all here. The site even offers 12 free hosting company templates. Reseller Hosting Guide is mostly read by web designers or entrepreneurs looking to start a hosting company or hosting company owners.

The amount of information on Reseller Hosting Guide is extremely impressive. The site is divided into five categories.

Many people think it takes a lot of money to start a web hosting business but it’s a lot cheaper than you think. You don’t even need any equipment. The key is reseller hosting and Reseller Hosting Guide does a great job explaining what that is.

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.

When I started, I was using a reselling hosting package much like what was described above. However, my problem wasn’t finding a good reseller plan (Reseller Hosting Guide has a nice list of recommended resellers). My biggest headache was dealing with stupid customers. This is where the articles in the Running your Hosting Business section would have really came in handy. You’ll find information on client communication, fraud protection, legal, hiring and firing, providing tech support, etc.

Affiliate Marketing + Web Hosting = Big Money

One of my favorite articles in Reseller Hosting Guide is the one about using affiliate marketing to make money from web hosting. This can give you all the benefits of running a web hosting business without any of the customer service headaches.

If you are curious at what MidPhase is paying affiliates per month. 75% of 4,000 clients a month is 3,000 clients from affiliates. Their site says they pay $85 per client minimum, that means at the very least they are paying out $255,000 per month to affiliates. That means this next year at the very least they will be paying 3 million dollars in payments ($3,060,000)!

Whether you want to start your own web hosting business or wish to make money from it via affiliate marketing, Reseller Hosting Guide is a great resource. Ben and Joel has been in the industry for a long time and have a great deal of experience and are highly qualified to write on the topic.

I love Reseller Hosting Guide not just because it has great information on making money with web hosting but because it’s a big moneymaker as well. Web hosting is one of the highest paying keywords on the Net and web hosting companies pay big checks to affiliates who can refer new customers to them. I can only guess how much Ben and Joel are making off those recommended web hosts.


80 thoughts on “Make Money Online with Reseller Web Hosting”

  1. soccer dvd says:

    i’ve the same exact business model john

    and the clients are getting my nerves 😈 , but i kept i professional thinking they’re my cash cows

    i find some of their request are ridiculous & impossible. haha. when that happens, i’ve to explain to them is ‘baby’ talk. simple or they won’t get it :mrgreen:

    1. Turk Hit Box says:

      When that happens, I direct them to Tech Support, a friend who is a systems engineer πŸ™‚

      1. soccer dvd says:

        i do that at times, but some of my clients are my friend, so i think its better to handle them personally

        also those high paying clients i give personal attention

        1. Googlelady says:

          I had a friend with the same business model and let me tell you he had his worst business experience. But if you manage to have a ‘team’ in your business will be less work but no one can start with a ‘team’. In my opinion webhosting niche is too big and competitive that if you are new and wants to get into this business the only way to succeed is with your friends.

    2. I was doing this for a good few years but like John says the clients eventually get to you. On one hand you think it’s money for nothing, on the other hand somebody who is only paying you $6 a month is phoning at 3am consecutive nights because his website is slow or they’ve trashed it.

      If you can keep it professional when that happens then you’re better than me!

      1. Eddie says:

        Yea, definitely clients can get to you. That is why I don’t like using these conventional reseller packages. I use this service where all I have to do is refer a client to a website and when they sign up, I will get paid. All the supporting will be done by the hosting company and I really don’t have to bother with the clients at all. So if they want to call at 3am, they just call the hosting company. I set my own prices and no monthly fee. And this is not something that you get paid one time. You get paid again when the client renew. I get around $6.5 per month profit. I charge my clients $9.95/month. The only thing I have against the service is that you people who sign up has to sign up for the whole year. So I just use it for my web design clients and I have made around $2000 so far for this year for the 24 clients that I have. It definitely is not a lot. But I guess it’s ok because I don’t have to bother with support requests and sleep soundly.

      2. Wahlau.NET says:

        this is common in this business……but it will be nice to have a guide for starters

  2. There are more than enough money making opportunities out there. It’s all about figuring out the ones that actually work, and taking advantage of those opportunities. Good luck everyone! :mrgreen:

    1. You just have to have the patience to test test test. Having some monetary resources doesn’t hurt either.

  3. Ljiljan says:

    It’s just another way to earn money online!
    Thank you for sharing this with us πŸ˜›

  4. devtrench says:

    If you really want to make good money at reseller hosting, you have to pack your clients sites in like sardines and only give them as much space as they need. It’s kind of like managed overselling and takes more work and control than just letting clients manage the account themselves (in fact you don’t want them to, because then they’d know how much space you are really giving them). However, if you can get a lot of small sites, you can make some good money at this. It’s a good way to start out if you are making nothing online.

  5. I know a few friends who make a lot of money doing this… they actually make a profit from having a reseller hosting account. I’m actually thinking of moving to a reseller hosting account since my blog host account is running slow.

  6. Steve M says:

    I have a reseller account but it isn’t a huge money spinner. A lot of other competition out there, so hard to get peoples attention and still make a profit

  7. RE-selling a hosting service has always seemed like a hard way to make coin. The numbers look great but from my experience when you start pulling near your maximum resources month after month you are considered a liability by many hosting companies (this one may be different) and they will most likely give you poor service so that you leave and they can replace you with a person who will use less resources.

  8. Angel says:

    Interesting review. Something to look into for sure. I always wondered how college kids could offer hosting packages that they appear to run themselves in DP forums.

    1. Googlelady says:

      and that’s is the main problem now. Many ‘kids’ wants to make money online and they choose a hosting reseller and start selling when they don’t know anything about Hosting.

      1. When I first started out on the internet I got mixed up with a hosting company that was run by a 16 year old kid. Big mistake. Support tickets were almost non-existant. I learned my lesson. Research, research, research!

      2. A problem? Would not think so, it is so easy to detect the KIDS and the ones that are serious into the hosting business. It just takes 5 mins of investigation.

  9. Entrepreneur says:

    I just finished reading your e-book, it was very helpful. One of the things you mentioned was about typos and that English is not your first language.

    You write pretty well … there is one typo though in this particular post that you may want to consider fixing – I think you mean RESIDUAL INCOME and not residue income πŸ˜€

  10. Turk Hit Box says:

    I run my dedicated server, and I sell hosting time to time to beginners πŸ™‚ Free cash out of nowhere for me.

  11. GettyCash says:

    I’ve just started to use web hosting reseller program.

  12. Matthew says:

    I started a hosting company back in 2001 and sold it about 2 – 3 years later and worked there until a couple of months back. It requires a lot of commitment. The hosting company hosts 3000 – 4000 domains. It’s that same rule of 20% of the clients need 80% of the support. Some I never heard from and some it was daily.

    I actually found that those who paid more money for the larger plans required less support in general because they tended to be more technical type people. The ones with the small 7 – 10 dollar a month accounts required more support as hosting was newer to them and it tended to be their first website.

  13. i tried to run this kinda business about 2 years ago. I like the prospect to get a “passive income” from loyal clients. I then found out that it is not as simple as it seems.
    Running hosting business need more than just a bunch of commitment. It also need you to -at least- knowing some technical aspect of hosting.
    I leave this business opportunity, lose some money, but got some useful knowledge of hosting

    1. john says:

      “Running hosting business need more than just a bunch of commitment. It also need you to -at least- knowing some technical aspect of hosting.”

      That’s just common sense. If you don’t know the business how can you run it?

  14. Neil Duckett says:

    Probably a good way to learn the ins and outs of hosting too.

  15. boring bro says:

    Yes.. Reseller webhosting is one of good income..
    There’s many affiliate webhosting worldwide.. You can choose one of them..

  16. Jack says:

    OHHH…
    so you are the one who hosted my sites long times ago??

    *noh.. kidding πŸ˜€

  17. Jayne says:

    I had this same problem both times I tried to run reseller hosting. The first time was as a part of a web design business. I thought it would be a nice little ‘extra’ to be able to say “oh don’t worry about hosting, we can set you up”. Clients loved that. What I didn’t love was those people calling my house at 3 in the morning because they lost their email password. (Most of them were local and managed to get my home phone number by simply calling 411… a mistake I won’t repeat!)

    The second time it was a standalone business, and I thought because people weren’t local, it wouldn’t have the same problems. However, I found that 9/10 accounts set up were fraudulent by spammers looking to set up an account they could spam bomb with and then delete without having to pay.

    In the end it was a nightmare business that cost me more in terms of headache than it could possibly be worth.

    Not to mention that the hosting market is absolutely saturated. Competition is high and advertising is expensive. That shrinks the profits down and sharpish.

    Anyway, all of that was to say that it was such a horrible experience that the best book in the world couldn’t talk me into repeating that particular nightmare. :mrgreen:

  18. loredan says:

    Like in any other online business, there are big boys and starters. The well established companies will get the most of the clients while the new and small ones will have to deal with 10-50 extra-super-mega demanding customers and will eventually end by closing down.
    A few years ago I start reselling hosting services but soon I realized it doesn’t make any sense to deal with silly people for only a couple of hundred dollars a month so I end up by giving free hosting and making indirectly a steady income from this.

  19. John, the last person I expected to call his customers names! Right or wrong, John, they are customers, in my lexicon, Gods!

    This however is a great article pointing me in the right direction. Thank you.

  20. chtanxw says:

    Another way to make money online …!
    I never think of this kind of affiliate program before read this post.

  21. We run a reseller hosting program and usually only sell hosting to businesses that we design sites for. Most of the sites don’t require much bandwidth or space. We also manage the servers and the clients have no access, so any problems we run into are usually our fault.

    It our case it is not difficult dealing with the customers. One a site is up we just keep charging them renewal fees. No changes are made to the server until the client decides they want to pay for a new design or feature. Our hosting company also has a pretty good help desk that can answer our questions if we can’t figure out what is going on.

  22. The web hosting business actually is not a easy task. It could be easy to get started, with a reseller account and a website and a billing software, but the hard part of the web hosting business is to keep clients satisfied and this is where your limits come when you use a reseller hosting, because all technical stuff are as backend of the company which rents you that reseller space.

    Apart that, the phone calls from the customers, when you are under a reseller hosting you can’t really know whats going on with the server and hence you can’t give a precise answer to the clients which makes you sound so unprofessional (well, after all, it is unprofessional to start with reseller).

  23. reseller says:

    reseller hosting can be very profitable if you can provide good support to your end users πŸ™‚

    1. yeah, but that’s where the headache comes…tech support is a bit*h…

  24. Poker says:

    In my opinion it’s pretty hard to get this from the ground and to start making profit of it. With a high level of competition i would not advice this to any starter in this business..

  25. Jalaj says:

    I have always found resellers more committed to selling their 20GB space to 1000 customers 1 GB each. When your site goes popular and starts consuming bandwidth your site is deleted quoting unreal reasons.

    Secondly they tend to switch to different providers at least 2 times in a year requiring you to upload afresh each time…

    – Based on experience with two resellers

  26. “Many people don’t know this but one of the first Internet business I started was a web hosting company.”

    Same here!

  27. bwb says:

    Hey one good way to make more is not to sell on price but on service and to find a niche you can dominate, basically not going after general hosting but a smaller segment like game clan hosting, or business hosting, or even smaller. Easier to advertise if you are focusing on business owners or gamers.

  28. The Foo says:

    Reseller hosting is not as easy as it sounds and is probably the toughest market to be in and actually make a decent amount. As the market is getting saturated with REAL web hosts offering dirt cheap prices, the margins for resellers are getting smaller and minuscule.

    The easy part is signing up and having the multitude of tools at your disposal. The automated reseller tools some of companies provide nowadays are unbelievably good. BUT the hard part is to try to convince the clients that you are better than a Godaddy, 1and1, Enom and many other big reputable companies that offer hosting at less than $10. 1and1.com offers a $5.99/ month deal — how are you going to compete with something like that and still try to get a decent commission? Top that with the advertising you need to do to get your word out, the already small commissions you get will dwindle away and have you running at a loss real fast.

    Also, when you are going into reseller hosting, the type of the people you are going to try to grab are the relatively new guys (or the ones that don’t know anything about web hosting). You aren’t going to get many clients that have hosting knowledge and are wanting to switch to another host (as they are smart enough to know that you are a reseller without a physical location etc.) and not a business that owns their own servers and dedicated support staff. So being stuck with the newbie market, and trying to support them. It’ll end up more hassle and manpower than it is worth trying to earn the meager commission per month. It doesn’t pay enough with the amount of “free” support you are going to provide.

    Bottom line is, it was much easier years ago (when John) started when reselling could actually get you a decent buck and one just needs to be aware of that fact. It is a way to make money online — but probably one of the toughest.

    1. bwb says:

      I disagree, I think it is easier, more people need it and you just need to find a smaller niche, no small company should go after general hosting market, they should find a smaller market where they are competing on service ;

      1. The Foo says:

        That’s exactly what I am saying — it doesn’t pay with the amount of service you will give. Count the service hours you going to give them and convert them into dollars and how much commissions you earn per customer — you’ll end up running at a loss with the time spent with supporting them. You just can’t compete, even in a niche market. And tell me how you going to compete with service when the big companies are offering 24 hour LIVE dedicated teams of support staff ready to help someone with a problem and solve it. You want to do that with 50-100 customers alone — good luck to you. And the average commission you’ll get per customer is about $5 if you’re lucky — that’s at a 50% margin.
        For $250-500, is it worth it? And don’t forget, I’ve not added in supporting, advertising and marketing costs yet.

        Don’t forget that you probably get a small and close to no customers buying higher priced packages as those customer will probably go with the big boys. Your niche would be selling the smaller cheaper packages with smaller margins too.

        To get profitable would be to go into a clientele range of 1000s and then you are left with the daunting task of spending your labor hours with support them. If you can sign up that amount of customers, then the whole story changes but for small one man resellers like us, it probably will be impossible. There are very few John Chows out there capable of signing up that amount.

        I want to emphasize that this doesn’t apply to those that are already established i.e. the resellers have already a foothold on the niche markets or the ones that have been doing it “from way back”. For the new ones that are trying to break in, it’ll be really tough.

        1. bwb says:

          I’m disagreeing, it is easy to find a small niche and charge a price premium and make great money. Service is what you compete on not dollars. 24 hour staff is not hard to do with an off hours support team or in niches customers are way more understanding of business hours with an emergency phone number.

          Charge $25 per customer, provide service to a niche that is untapped, and you can make good money and grow/market easily. I actually think its way easier now for resellers as the internet is more developed and these small niches are actually quite big in terms of possible customers.

          1. The Foo says:

            if you can find someone that will pay $25 for a personal or business account (even in a niche market), than my hats off to you. Be honest, how many customers you think you’ll sign up and translate that into commissions. Estimate how many hours you going to support your customer and times that by how much you are worth per hour. E.g. if you think you are worth $5 per hour and you think you are going to support the customer 5 hours a month, then your service costs would be $25/ month. Then take the commission you just got and deduct the advertising costs (which you have to do), misc costs that you have to put out to support your reseller business and that support $$ that you just calculated. Now we can see how much you are really earning per month and whether it is worth it.

            Remind you that even in whatever the niche market is, one will be hard pressed to not go with the big boys that charge $5.99 for a personal and $9.99 for a business account with all the bells and whistles that come with it. The customer really couldn’t care less what niche it is if it is going for that price.

            If you are business minded — service does translate to dollars although it is not obvious. “Time is money” — If you are going to provide the service and support, you need to create a fine line between how much time you spend on per customer and your return.

            The big question is that if you going to provide service, is it worth the effort for a small commission when you can be more productive spending your time on something else and earning more money. Only you can be the judge of that.

          2. bwb says:

            Thanks but its not that hard, like anything it takes good marketing and hard work. I can easily find 2 to 5 people a day willing to signup for business class hosting and willing to pay $25 to $50 for that expertise, just read the article at resellerguide.com on the frontpage.

            Cheap hosting is leaving an entire class of customers wanting reliable hosting and they are willing to pay for it, as well as professoinal help. Just because you don’t think there is a market doesn’t mean there isn’t one. Check out webhostingtalk.com for some recent posts as there are a lot of companies doing just great with small business niches that are local or niches on the web.

            I think you have a rather negative view which is ok as its not for you. But generally you have to like providing service and support and business hosting is one way to escape from the typical cheap hosting customer who makes so many support requests.

          3. The Foo says:

            tell me this, is a business going to trust a small company reseller without physical presence charging $25-50 or a GoDaddy, Enom or 1and1 charging sub $10 business hosting with excellent customer service and support? then there is the other big boys like Media Temples and Blue Host of the world which aren’t resellers but targeting niches with hosting packages of $20-25. Good luck competing with them. They are the ones that are killing the smaller guys. Honestly, if I were to put you and them on the same table, both charging $25 — which one would you choose… an unknown, no name company that supposely gives great service or a Media Temple that boast hosting for the likes of Michael Arrington’s Techcrunch. Hmmmm… i won’t even flinch with whom i’ll choose. I think you get the point.

            Regardless of what resellerguide says, I find it really hard to believe that you can find 2-5 business customers a day willing to pay that amount to an unknown just starting reseller. I dare you to do it and prove me wrong. If it was a great money seller, John Chow would still be in it making $1000s.

            It’s not that I have a negative view — i just have a realistic one. I speak from experience — been there, done that. I did reseller hosting for 2 years and had a few hundred customers but margins were so small and it was too tough to break into the business sector as bigger hosting companies emerged with their ridiculous pricing and extravagant advertising. I have since sold the business off as it really couldn’t be a part time side business. I was also spending alot of time doing service and support with nothing to show in return — yes, customers were happy but it didn’t translate to profitability and growth on my tiny margin.

            When you talk about business hosting, it’s too hard to break into the market AS A STARTER as businesses look more for at the credibility and perception factor.

            Ofcourse there is always a market for everything but reselling is not the way to go in web hosting. You want to sell hosting, you have fork out some money to buy or rent dedicated server and go that route. There is no short cut to it, especially in the world of web hosting. You really have to show the customer that you have a physical presence and not one that will close down tomorrow ESPECIALLY dealing with businesses. No amount of words of how good the service you going to give is going to cut it. Word travels fast once you piss them off and you going to see a lot of customers dropping like flies.

            In terms of Web hosting, it not a case of low prices — low quality anymore (that is where you have the wrong idea of how a customer thinks) … at present, that thought is thrown out the window and is the old way of thinking.

            It’s gotta be ridiculous to think that someone would buy a hosting package at $50/ month. Anyone paying an unknown starter company that amount (that doesn’t even have a physical location) should really have their head examined — might as well throw that money down the drain as he/she is getting ripped off.

          4. bwb says:

            Yep a business will trust them over a mega company any day, especially when a good sales person can establish a real connection. People are tired of talking to outsourced or low level people who can’t complete things.

            Media Temple is someone who has done a great job of selling expensive hosting to a big business audience as well as devs and big companies. But they also have a tech edge.

            Just because you did it and it didn’t work out dosen’t mean that is the situation forever. You have to increase your margins, focus on a niche, and provide service the big companies can’t (aka personalized and not anonymous level 1).

            >Regardless of what resellerguide says, I find it really >hard to believe that you can find 2-5 business >customers a day willing to pay that amount to an >unknown just starting reseller. I dare you to do it and >prove me wrong. If it was a great money seller, John >Chow would still be in it making $1000s.
            Well considering I run Web Hosting Unleashed I forward 2 to 3 people a day to business class hosting, and those are mostly small companies I know personally.

          5. The Foo says:

            We obviously have a major difference of opinion. That’s ok as it is healthy discussion. At the end of the day, it’s my opinion and there are always going to be pros and cons — we can go back and forth on this forever.

            To me, as a business owner myself, if I were to choose my web host — I will definitely have no hesitation on choosing a big established host (over a reseller) with the guarantee that I can call them up at 3 am in the morning and resolve a major server/ replication problem ON THE SPOT (while on the phone) than a reseller that has to wait for response on the main webhost company and getting back to me. AND paying less saves my costs too. To me it’s a no-brainer. I have 1and1 currently, have had MT and many others too — and support has been as personal and helpful as you can get.

            I just go back to this point — could you imagine if an ecommerce business or travel site that is dependent on their site being accessible to make money, goes down in the middle of the night — would he /she be happy if the reseller had to “get back to him” to solve the problem as the reseller had to call the main company directly to solve that problem INSTEAD of being able to solve the problem on the spot (or while he was on the phone).

          6. The Foo says:

            “provide service the big companies can’t (aka personalized and not anonymous level 1)”

            not sure what you mean here — personalized service yes but anonymous level 1? i’d rather speak to a person i don’t know, who is knowledgeable with tech qualifications than someone who is a reseller that doesn’t have a clue about web servers, sql servers etc. and is just in it as a side business to earn some extra money and may not even have the proper licenses/ liability insurance to do business etc. That’s as ridiculous a statement as i’ve heard. You honestly can’t be believing that big companies can’t be personalized. If a reseller screws up (they have very little to lose), if a big business screws up (they have a lot more to lost). All the personalization won’t save you if your server was down and you had to wait a day to get an answer back because the so called reseller had to in turn wait for an answer back from the original host.

          7. bwb says:

            Sorry if that was unclear, customers prefer support that is not the anonymous level 1 guy, they want someone who can answer their questions and help them with everything they need and who is a real person to them. And that is how resellers/small hosting companies have the edge. There is a lot of room out there even for a larger company who builds teams that handle groups of clients so that you can call or put in a ticket and know the first name of who will answer (rackspace does this). Also, big companies are not personalized, they have staff in India or college kids providing support. They don’t know how to answer questions completely and they are just level 1 tech support and not that great. We get a ton of reviews each day with people ready to pay more and ready to move. Business hosting has to exploit that weakness.

            I’m sorry to disagree with you but not sure what you want to hear from me, I’m obviously not going to agree with you as I see this daily and I’m pretty involved in the hosting industry.

          8. The Foo says:

            “they have staff in India or college kids providing support”
            just curious, name a few big hosting companies that does that? I’ll make sure to avoid them in the future.

            “answer their questions and help them with everything they need and who is a real person to them”

            you have been kind of sidestepping what i have been trying to say all along — and that is, what is the point of having a person to talk to and not having them be able to do anything because they have to wait for an answer back from the main hosting company? At that point, is having the warm and fuzzies of someone talking to you enough? I mention the 3am emergency scenario. I DON’T disagree with the personalization, I disagree with you saying that it is better than getting the problem solved faster (than if you used a non reseller).

            You talk as if the support for a reseller will always be superior than a bigger company. that is a misconception on your part as there is absolutely no guarantee and that needs to be pointed out to the readers here! Can you guarantee me that the majority of the people that sign up to be a webhost reseller know what they are talking about? I don’t think you can, I believe most of them are in it to make some side money. And I dare say that some of them are college kids too. You HAVE to point out that being a successful reseller of business hosting requires the fact that they are technical minded to help their customers all the way — that point is kind of blanketed with the fact of making good money through reselling.

            with this whole discussion, i just want to point out that this whole image of earning good money by being a web host reseller is not really how its cut out to be. Your statements that say its easy to sign up 2-5 people a day @ $25-50 are giving people false hope as it is one of the more difficult markets and overly saturated to be in — you may be able to do it but you are in a select group.

            No offense but you writing about the best hosting companies and affiliate reseller programs out there (which is very good by the way) is a little different than starting out as a newbie reseller, running the hosting business itself, maintaining and keeping the customers happy. AND it must be pointed out that it would probably be easier for you referring customers at that price than a starter business as you are considered established.

            that’s what I want to hear from you — you are a good sales person with good sales talk (especially with sidestepping my questions) but you may want to warn people about the realities of the whole thing and what they are getting into.

          9. bwb says:

            Sure, godaddy, enom, etc, try their level 1 support, they suck ass and that is an official quote πŸ™‚

            Would you rather here a robot response or here, Hi Mr. Foo, how is your PHP site and blogs going? We fixed your problem and here is the error. Btw, you might be interested in this plugin that does a cache for WordPress if you get a ton of hits. Etc… Just a really ruff example as its late here but that is what service is.

            Yep I understand the 3am emergency call, the point is if business hosting is done right there is no emergency call. You have a good admin who locks those servers down and if the call comes can react. I also strongly believe from exp too that small companies can fix crap problems faster than enom or ipower or big companies. Resellers are smaller of course and rely on their hosting company to act quick but small hosting companies have the better edge.

            And you are correct, the majority of resellers try to compete on price and don’t have the tech knowledge to compete. I don’t recommend those companies and that is why I run a hosting review site as I want people to do their research. That dosen’t apply to well run small hosts and those are easy to tell because they have solid reviews and a well run site. Examples being doreo.com or cartikahosting.com, you haven’t heard of them but they are both solid. Yes I agree, not everyone can start this but there is a lot of oppurtinity if you can do it right.

            Sorry if I gave that impression, it is hella hard work and you have to know your stuff but if you do there is some great money out there. Not everyone can do it though. I’ve run two hosting companies and quit over similar stresses but it was good money. I also was the first employee of HostGator and Brent the owner is a perfect example of someone who saw an opening, did good marketing, and provided a product for webmasters and now is one of the largest hosting companies in the US. Stories like that are just like John Chow’s, success to those who work hard for it.

            So I do agree with you, my intention was not to say this was so easy anyone can do it, but for someone who can master the hosting field there is a lot of opportunity out there. There are no clear market leaders in a lot of the niches and those are still waiting to be made…

          10. The Foo says:

            well said! bottom line is being a reseller takes hard work and is not a simple join and get easy money thing. thanks for the interesting discussion — sorry for the EXTRA long winded forum like comments.

          11. The Foo says:

            well said! bottom line is being a reseller takes hard work and is not a simple join and get easy money thing. thanks for the interesting discussion β€” sorry for the EXTRA long winded forum like comments.

          12. bwb says:

            Agreed, my point was it was still an open market. For example I would never encourage people to start a search engine from scratch as that market is over, but hosting has a lot of room for people to enter. That was my point πŸ™‚

          13. what about mahalo? πŸ’‘

  29. Rob says:

    I’ve been doing this since the dotcom boom back in the day. It’s an excellent way to make supplemental income.

    Do your homework if you’re looking into getting into this though. If you choose the wrong host then you could be in for a nightmare.

  30. The key is learning how to outsource, as with anything with residual income.

    1. That’s right… goto FiveDollarWiki.com! (Shameless promotion…) πŸ‘Ώ πŸ‘Ώ πŸ‘Ώ

  31. HMTKSteve says:

    I do a little bit of web hosting on the side but only for friends.

  32. Nick says:

    Sounds a little suspicious, how many people could you convince to host a website with you for $120/ yr plus the cost of registering a domain? I suppose there are suckers out there.

    1. Well it’s 90% marketing and 10% is your dummy product…as far as web hosting goes.

      Let’s say a Noobie was looking for a web host, he/she’d just go straight to google and start typin’ “web host”.

      If you can show up near the first page, you could get a lot of suckers… 😈 😈 😈

  33. I’ve been reselling hosting for 3 years and it’s a huge money maker for me. I’d recommend it to anyone.

  34. Shaun Carter says:

    Is it just me or does the experience John and many other commentators have regarding providing tech support to clients show a very large potential client base for a hired tech support service? Someone with a lot of hosting know-how could charge a certain dollar amount per month, per customer in your hosting company to provide all the tech support. If you contract out to do this for several small reseller webhosts I imagine you could earn a nice income… although you’d have to deal with phone calls 24/7.

  35. Deceth says:

    Great Review! I’ve actually been thinking about the Reseller business for a long time. This article as well as the Reseller Hosting Guide are very valuable resources! Thanks John!

  36. Webhosting is a very competitive market. And I think that it’s hard to enter it… BUt it’s worth giving it a try.

  37. simon says:

    Web hosting is alway hot!

  38. Imed says:

    Been in the hosting business it is truely very profitable and very stable business if you know what you are doing!

    1. Yes, that’s true with any business. πŸ’‘

  39. Donald says:

    hi john, i can understand where u are coming from.. i am running a web hosting business too and it can really gets on your nerves when users starts to call you in the middle of the night… or a same user calling u a few times in a day.. it just does not make sense to earn that few dollars a month from clients who are problematic.. sometimes support calls can take up to an hour of your time just to entertain a user who does not know how to configure their POP3 emails.. πŸ˜€

  40. I never tried web hosting affiliate before, well I think I do but just didn’t made any sales. Looking at affiliate market is growing like crazy, I think I do not want to be left out. It’s worth for giving out a try. Thanks John.

  41. Israel says:

    hosting is a pain in the arse. I stopped that before I saw it can be a pain. now i only host a select few that know what they are doing.

  42. Nelson says:

    Yea, definitely it is. It is definitely a cut throat industry.

  43. I am not a techie type much at all so I wouldn’t want to do reseller hosting due to it would deal with issues in customer service I wouldn’t even want to deal with…however

    I think it is great to be an affiliate of a hosting service as long as it offers good support and takes care of it’s customers. I often refer people to hosting I have had good experience with and make a nice commission when they buy. However, I don’t just refer any hosting based on commissions…it has to be worthy for me to refer it.

    I had a nightmare with the MIDPHASE hosting and will never again buy a product that requires their hosting…Not did I feel like I was on an autoresponder support system that didn’t solve anything for me after 17 emails, but I lost 20 bucks for setup of something i could never resolve or use…this is something I would never refer again.

    Veronica Routtu

    1. I’ve personally had nightmares at any shared hosting company. I think you gotta stick with dedicated if you are going to do it right.

  44. Yeah, I’ve been thinking about doing this not that I’d do it though. I know this because I call my dedicated hosting company all the time and I feel bad for the tech guys there dealing with stupid customers or if the server goes down, I will get very very mad at them for few minutes until they get it right again. That’s my 2 cents…

  45. Teejay says:

    what I know is support is the thing I will pay a hosting company for.

  46. Nathan says:

    try pushwire.net. They got this cool reseller that you don’t have to pay monthly fees and only pay when you sell. I hate monthly fees. they the worst.

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