Every business owner, whether they’re a freelancer or the head of a team of hundreds, wants to maximize revenue without having to overextend themselves. It’s often a careful balancing act between wanting to bring in as much money as possible without wearing yourself or resources too thin. Often, people start wondering how they can start making more “passive” income.
Right off the bat, passive income is largely a myth and it often sounds too good to be true because it is. However, that doesn’t mean you can’t add another service to your business that won’t require a tremendous amount of time, but still bring in a decent amount of additional revenue. Make no mistake, being a hosting reseller takes work. You will have to provide customer service. But, you can turn it into a profitable addition to your business is you properly dedicate yourself to it. Many digital-based businesses have invested in dedicated servers with the goal of reselling the space on it to host clients’ sites. Many businesses have found success with this model, which is why so many hosting companies advertise their reseller deals. Here is what you need to know about reselling space on a dedicated server.
Who would benefit from reselling?
Nearly any kind of digital based business can add hosting to its portfolio of services. Naturally, you should offer some kind of web design or development service already in order to seamlessly add the hosting component to the package. You don’t have to be a full-time web designer, though. You may also be an SEO consultant, marketer, or public relations professional that includes site building as part of your list of services provided. Any situation where you’re helping a client design a site or improve their site is an ample opening to also offer hosting. You can easily add it as a line item to your monthly retainer. Or, you may now get to offer a monthly retainer.
Choosing the server
There are a good variety of high performing servers out there that can help you reach your goals. Ultimately, the question comes down to using a VPS vs a dedicated server. While a VPS costs less and may have enough horsepower to provide a sufficient hosting environment for multiple informational sites, you’re better off going with a dedicated server if you’re serious about running a hosting reselling business.
Dedicated servers provide more resources, which is better for scaling as you take on more clients. They are also more flexible. Additionally, if you’re looking to install any specific operating systems or software to help you more easily create a shared hosting environment, the hosting company you partner with may restrict what servers they allow this software to be installed on. A dedicated server may be the best option by default. VPSes are great to be sure, but you might as well go for the safe bet for a few extra dollars a month.
The next piece of software may be of particular interest to you if you’re planning on running a Linux server to support your business.
Why CloudLinux may interest you
You’ll have to choose between going with a hosting company that offers hosting on Windows servers or Linux servers. Linux does allow for a bit more flexibility and customization. Assuming you do go with a Linux host, you may be interested in installing CloudLinux on your dedicated server. CloudLinux, as a company, offers a variety of products. As a reseller, though, what you’ll primarily be interested in is CloudLinux OS as many of the other management tasks will be handled by the hosting company. Installing CloudLinux OS on your dedicated server will make it easier to create a shared hosting environment for you to manage and divide out to your clients.
CloudLinux offers features that improve stability, density, and security. It better isolates each client so that allocation of server resources remains “fair” and doesn’t negatively impact other clients on the server. If you’ve ever used shared hosting for your own site before, you know how other sites’ traffic can affect your performance.
What you need to be familiar with
If you already successfully manage your own site, you’ve already got the technical knowledge required to start your reselling business. You’re no doubt already familiar with how cPanel and WHM work. All you’ll need to do here is go into WHM to create a cPanel environment for each of your clients’ sites and give them the administrative access they need to manage their site. The rest is up to them. Of course, there is one big skill you’ll need in order to successfully run this hosting reseller business and isn’t so much a technical skill, but rather a customer service skill.
When you purchase a server with the intention of reselling space on it, it’s usually done (and should be done) under a white label agreement. That is, the original hosting company’s branding isn’t anywhere to be seen. For all intents and purposes, you are selling server space on hardware that you own. However, the downside to that is any issues your customers have aren’t going to be handled directly by the hosting company. They will be handled by you. What that means is, the hosting company you’re paying for a server won’t field your customers’ service tickets. You’ll have to accept them, then contact the hosting company in order to get things fixed. Being comfortable in that middle man role is going to be essential to running this reseller business.
Preparing your business
Depending on what you already do primarily with your business, preparing your business to take on the role of web host may be simple or it may be time-consuming to get off the ground initially. Either way, it will certainly add somewhat to your regular workload. If you’re lucky and you work strategically, it shouldn’t take up too much time and the extra income every month will far outpace the amount of time you need to spend doing any really difficult work.
You’ll need to set up a ticketing system to process any requests that your clients have regarding troubleshooting. This will also involve setting up some sort of help desk type interface somewhere on your business’ current site. Also, be sure to get any kind of legal paperwork prepared including proposals, agreements, and terms of service. When it comes to hosting, these things are important and you need to protect yourself. You may already have a lot of this already prepared for your current business and it’ll just take some tweaking.
Web hosting is much more adaptable and profitable to your business than you may realize. While many people think of their hosting solution as just a way to keep their business website online, which is important, there are many opportunities to expand your portfolio of services and make additional income. While it may not be explicitly “passive” it’s certainly a great way to make extra revenue every month as a billable item. If you’re interested in signing up for a dedicated server to divide and resell space on, contact us today. At KnownHost, we’re dedicated to providing you with the business solutions you need to grow.