FEATURED Is Web Hosting Business Profitable

Is a web hosting business profitable? If this question is on your mind you are not alone. Many people, especially beginners, wonder whether it is possible to make a profit in the web hosting business or not.

Well, the answer is yes, but only if you do things right.

To start a profitable web hosting business you must find out more about this industry and learn how it works before making any decision.

It might seem easy but actually is quite complicated especially if you are new to this area. But, it’s not impossible. One of the biggest mistakes beginners do in the web hosting business is spending too much time on research – instead of getting their hands dirty and starting to work for their dream business.

The best way to learn what the web hosting business is all about is to start your own website. This will give you a firsthand experience of what it takes to run a web hosting company and what are the day-to-day challenges you will face.

Once you have a good understanding of this business, only then you should consider starting your own web hosting company.

It is no secret that most successful online entrepreneurs started their businesses on the side while working a full-time job at the same time. They did this because they knew that they will not have any money to support themselves when just starting out and also due to the lack of knowledge in the web hosting business.

In this article, you’ll learn about where to find inexpensive web hosting services, which will help you reduce your start-up cost and attract more customers.

Let’s get started with the basics.

What is Web Hosting Business?

In simple terms, the web hosting business is the business of renting out space on a web server to website owners. The web server is connected to the internet, so website owners can use it to serve their websites. Web hosting companies provide the necessary hardware, software, and other services required to host and run a website.

Web developer and hosting

While you can certainly build your own web hosting company from scratch, it is often more cost and time-effective to resell hosting services from other larger hosting providers. When you are reselling hosting services, you purchase web hosting space from the reseller, who then passes on the cost to you at a discounted rate.

This allows you to offer web hosting services to customers without incurring the costs associated with setting up and running your own hosting infrastructure.

In this article, we’ll mainly discuss reselling hosting services from other larger hosting providers. We will also discuss how to get started in this business, what are the advantages and disadvantages of reselling hosting services.

How Does Web Hosting Reselling Work?

Web hosting reselling works much like any other reselling business.

A web hosting reseller purchases hosting services from a larger web hosting provider and then sells them to customers at a marked-up price. The reseller is then responsible for billing, customer support, and any other management tasks related to the web hosting services they provide.

As a reseller, you can then resell web hosting services to other website owners.

You will act as the middleman between the hosting provider and the customer, providing customer service, technical support, billing, and other services.

Now that we understand how hosting reselling businesses work, let’s understand the basics of how web hosting works. Because without having a good grasp of the basics, it will be impossible to run a successful hosting reselling business.

So, how does web hosting work?

Web hosting service providers work by providing physical servers to store and manage a website. The hosting provider sets up the server, configures it, maintains it, and provides technical support for their customers. When a website owner wants to host their website on the internet, they can rent server space from the hosting provider.

The hosting provider then manages and maintains the server, ensuring that the website remains secure and running smoothly.

Once you have a good understanding of how web hosting works, you can consider what type of web hosting reselling business model will be best for you. You can look into shared hosting, virtual private server (VPS) hosting, or more.

Why Resell Web Hosting Services?

Starting a web hosting reselling business can be an attractive business venture for entrepreneurs looking to capitalize on the growing demand for web hosting services. With a reseller plan, you can purchase web hosting services from a larger hosting provider, and then resell these services to other customers.

This type of business allows you to gain the benefits of web hosting without having to manage the technical aspects of the hosting services. As the web hosting market continues to boom, reselling hosting plans are becoming an increasingly popular business model. You can work from home and make a good living with the right plan.

Generally, companies that offer web hosting businesses will sell different types of web hosting services such as shared, reseller, and dedicated plans. They also help you set up your site using popular scripts like WordPress and Joomla.

With reseller hosting, it has now been quite easy for anyone to start their own web hosting company. You can easily buy a reseller hosting plan with a pre-installed control panel and many other tools required to run a web hosting company. The income potential in this type of business is high and the cost of starting can be very low.

Web Hosting Business Income

Web hosting business can be highly profitable.

With the right plan, you can make a good living working from home and become your own boss.

The amount of money you will make with hosting reselling business will depend on the type of plan you have, the number of customers you serve, and other factors. Generally speaking, the more customers you serve, the higher your income will be. You can also increase your hosting plan prices to generate more income for yourself.

As long as you offer quality hosting services with excellent customer service and support, you will have no problem making money from reselling hosting plans.

With the right business plan, you can be well on your way to running a successful web hosting reseller business. All you need is an understanding of how web hosting really works, an established hosting provider to buy hosting services from, and a good business plan to make sure your reselling business is profitable.

In fact, becoming a millionaire with reseller hosting is not impossible. With dedication, hard work, and the right business strategies, you can reach this goal.

And with the right hosting provider, you can enjoy high profits and a steady stream of customers. So, if you are looking for a great passive income source, consider reselling web hosting services. People don’t usually cancel their hosting plans once they sign up, so you can expect a steady stream of income for years.

Cost of Starting a Hosting Business

The cost of starting a web hosting reseller business is not as high as you may expect. Most web hosting providers offer a range of plans that are quite affordable, and there are plenty of options for beginners as well. With less than $10 a month, you can easily start a reseller hosting business with hosting providers like Cloudways.

Cloudways Landing Page

You can start with a basic reseller hosting plan at Cloudways and you don’t even need to enter your credit card details for their free trial. The company also offers some excellent features such as automatic backups, 24/7 support, and more.

InMotion, Bluehost, ResellerClub, and GreenGeeks are also great options to consider when starting a reseller hosting business. Unlike Cloudways, they won’t offer you a free trial, but their plans are also quite affordable and have everything you need to start and run a successful web hosting business.

You can start small and gradually upgrade to more advanced plans as your client base grows. Regardless of the hosting provider, you decide to go with, make sure that they offer reliable services and plans that will help you grow your business.

If you are just getting started, it is strongly recommended to try Cloudways free as it is the most cost-effective and reliable option to start a reseller hosting business. With their free trial, you can test out all of their features. Without spending a single penny, you’ll be able to determine if this is the right solution for your business needs.

Best Reseller Hosting Providers

One of the best reseller hosting providers for most people is Cloudways. It provides excellent services, has a robust platform, and offers a free trial without a credit card. The company also has competitive pricing starting from under $10 per month.

Well, there are plenty of other web hosting providers who offer reseller hosting services, such as InMotion, Bluehost, Resellerclub, and GreenGeeks.

These are some of the best companies that are offering affordable reseller hosting services, which you can use to get started.

While I strongly recommend Cloudways, each of the mentioned hosts in this article offers reliable services and plans that are suitable for most people.

Read – 25 Best Web Hosting Services for Small Businesses

How to Start a Web Hosting Business?

If you are interested in starting your own web hosting company, the best way to do so as a beginner is by renting a server from a larger hosting provider and reselling their hosting services. This will give you the freedom to manage your own business, set your own prices and grow your hosting business at your own pace.

You basically become a hosting reseller, and by doing so you are not responsible for the day-to-day operations of the web hosting company.

Of course, you can build your own infrastructure from scratch.

However, as a beginner, the cost of doing so would be too high. So, instead of building it all yourself, it’s better to rent a server from an established provider.

This way, you’ll have a strong understanding of the web hosting business and can then decide whether or not to continue with it.

If you find that the web hosting business is successful, you can then move on to building your own infrastructure and becoming an independent hosting provider.

Indeed, it’s a smart move to start small and slowly grow your hosting business until you are comfortable enough to invest more in building your own infrastructure. It doesn’t make sense to invest a lot of money in the beginning without proper understanding and testing out how the hosting business model works.

As a reseller, you have a better understanding of the hosting business, which will help you make better decisions in regard to building your own infrastructure.

To get started, simply sign up for a reseller account, select the hosting plan you want to offer, set up your website and start promoting your business.

Cloudways is undoubtedly one of the best and cheapest ways to start a hosting reseller business. Because it offers a free trial that gives you enough opportunity to test out the features and decide if it fits your business needs. Plus, you don’t need to enter any credit card information until you’re ready to purchase.

I don’t find any reason why you shouldn’t give it a try.

Quick Note: Regardless of the web hosting provider you choose, make sure that they offer reliable services and plans that can help your business grow.

You can also choose InMotion for reselling web hosting services.

HostGator Reseller Plans

There are a lot of wonderful hosting companies out there.

But, when it comes to reselling web hosting services you’ll want to stick with the ones that are popular and offers great service at cheap rates.

Cloudways, InMotion, Bluehost, GreenGeeks, and ResellerClub are some of the best options out there when it comes to reseller hosting.

Why? Because these companies are popular, but cheap and are in business for years and, as a result, you’ll be able to make more money reselling their services.

What’s more, it is very likely that you’ll get better customer support and quality servers if you choose a large company.

One of the most important things you need to do when starting a web hosting company is to choose the right web hosting services to offer. This is because not all hosting services are created equal.

And, some types of hosting are more popular than others. For example, the most popular hosting services are shared, VPS, and dedicated hosting.

1. Shared Hosting

Shared hosting is the most popular type of hosting and the price is very affordable. Many companies offer shared hosting services to attract customers and keep them hooked in order to increase their profit margin.

Shared hosting offers shared resources between websites.

It is the cheapest form of hosting available.

The web hosting company takes care of all the server maintenance, security updates, and regular backups. All you need to do is make sure your website is compliant with the company’s terms of service.

2. VPS Hosting

Virtual Private Server (VPS) hosting is the next step up from shared hosting. It is similar to shared hosting in that you share the resources of a physical server but with VPS, your site is given its own virtual operating system.

VPS hosting is more expensive than shared hosting but it is a good option for those who need more resources than what shared hosting can offer.

Also, you can install your own software and operating system on a VPS server, giving you more control over your hosting environment.

The Most Popular VPS Hosting Providers

Almost every hosting providers offer both shared hosting and VPS hosting plans. You can also start your hosting business offering shared hosting plans and later move to VPS plans once you start making some profit.

3. Dedicated hosting

This is the most expensive type of hosting. But, it also delivers the best performance compared to other hosting types. The server resources are dedicated to your website only, so you will have maximum control over them.

Most web hosting companies offer a wide range of hosting services. But, you don’t have to offer all of them. You can focus on the hosting services that are in high demand (for example, shared hosting) and offer a good profit margin.

Simply, choose the type of hosting you want to start with, buy a reseller hosting plan, set up your hosting website that explains all the hosting plans you offer and you are ready to start your own web hosting business.

In conclusion, the web hosting business is a profitable business. But, it takes hard work and dedication to make your business successful.

Benefits of Web Hosting Business

The web hosting business is a lucrative one, as it offers numerous advantages. Here are some of the main benefits you can expect:

  • Low startup costs: As a reseller, you don’t need to invest in expensive servers or hire IT personnel as the provider takes care of all of this.
  • High-profit margins: As you can set your own prices and markups, you have a higher chance of earning a higher profit.
  • Easy scalability: You can easily increase or decrease your server resources and plans as per the needs of your business.
  • Wider customer base: As a reseller, you can offer your own hosting services to a wide variety of customers, including small businesses and bloggers.
  • Passive income source: By operating a web hosting business, you can generate a regular source of monthly income without much effort. As your customers keep renewing their hosting plans, your income does too.

So, if you are looking for a profitable venture to invest in, the web hosting business is a great option. With the right reseller hosting provider, you can start your own business in no time and build your own infrastructure later as your business grows.

Cons of Web Hosting Business

Just like any business, there are certain drawbacks to operating a web hosting business. Here are some of the most common:

  • High competition: As more and more people enter the web hosting business, the competition increases as well. You need to ensure that your services stand out from the competition in order to attract customers.
  • High customer support costs: As you’re offering your own services, you also need to provide customer support. This can be expensive in most cases.
  • Time-consuming: Managing a web hosting business can be time-consuming and laborious, as you need to keep up with the latest trends. Also, getting a good number of customers who will keep paying takes time.

So, before you jump into the web hosting business, make sure that you understand all the risks and rewards associated with it. Even though there are some risks involved, it’s the same for any type of business. If you’re serious about starting a hosting reseller business, then go for it! With the right plan, success is almost guaranteed.

Is Web Hosting Business Profitable?

Yes, the web hosting business is profitable and it can be a good source of passive income. Since most of your customers will be paying you on a monthly basis, you’ll have a consistent flow of income coming in every month.

In addition, web hosting is a recession-proof business since people and businesses will always need it. Finally, you can start your own web hosting company in less than a day and with very little start-up cost.

For example, you can start with InMotion reseller hosting plans at only $19.95 per month and it offers unlimited websites, free SSL, and more.

Now that you know all about the web hosting business, it’s time for you to make a decision and decide if this is the right business for you.

Remember, there are many different ways to get into this business. So, find the one that best suits your needs and start working on your business plan.

If you buy a hosting reseller plan and start selling hosting services at cheap rates, you’ll be able to earn as much as $100 – $200 per month within 6 months, mostly depending on the number of accounts you have.

But, it takes hard work and dedication to make it successful.

Although it is not easy to run a web hosting company.

But, the good thing is that if you do things right and follow proven business models, there is a good chance to make a very good profit in this industry.

How to Choose the Best Reseller Hosting?

When it comes to choosing the best hosting service provider for your business, there are a few factors you need to consider. Here are some of them:

  • Server Uptime: Make sure that the provider offers server uptimes of at least 99.9%. Any lower than that can lead to unreliable service and could damage your reputation. Most popular web hosting providers offer server uptimes of over 99.9%.
  • Security: Ensure that the provider you choose offers stringent security measures to protect your data. SSL certificates, advanced firewalls, and two-factor authentication are some of the features you should look for when choosing a provider.
  • Customer Support: Good customer support is essential for any business. Make sure that the provider you choose offers 24/7 customer service.
  • Pricing: This is one of the most important factors to consider. Compare different hosting plans and find the best deal that fits your budget.
  • Reliability: Ensure that the provider is reliable and has a good reputation in the industry. After all, you don’t want to end up with a shady provider.

By taking into account these factors, you can easily find the best hosting provider for your business. With the right provider by your side, you can rest assured that your business will run smoothly and efficiently. So, if you are considering starting a reseller hosting business, be sure to do your research first and then make a decision.

The Cheapest Reseller Hosting Plans

There are many hosting reseller plans available in the market. Some of them are quite expensive, but there are also some cheaper options.

Here is a list of the cheapest reseller hosting plans:

  • Cloudways Reseller Plan – Cloudways offers a free plan and the paid plans start at only $7.20 per month for 1TB bandwidth.
  • InMotion Reseller Plan – This plan starts at $19.95/month and offers unlimited domains, 600GB bandwidth, including billing software.

By carefully comparing different reseller hosting plans, you can easily find the one that fits your budget and needs. I recommend Cloudways because it offers a free trial period and very competitive pricing when compared to the other options. Also, be sure to read the Terms of Service and other requirements before signing up.

How to Get Web Hosting Clients?

Web hosting reselling business is a lucrative business, as there is always a constant demand for web hosting services. More and more people are building websites. They need reliable web hosting services to keep their websites running and secure. As a web hosting reseller, you can offer these services to your clients.

Here are some of the best strategies you can use to get web hosting clients.

We’ll start from the very basics.

1. Create a Professional Website

The first step is to create a professional website that showcases your web hosting services and features. Make sure your website is informative and easy to navigate.

You should include as much information as you can about your web hosting services, such as features, pricing, uptime guarantees, etc. People are more likely to trust you and your services if they find a well-designed website.

When I first started my website, I used WordPress to create a professional website. It was easy to set up and manage. Also, WordPress powers more than 33% of the websites on the internet, so you can be sure that your website will look great.

Well, WordPress alone isn’t enough to build your website.

You will need a domain and web hosting too.

While I understand that it can be overwhelming for beginners, trust me it’s easier than you think. I’ve created a comprehensive guide on how to create a WordPress website.

Follow the guide and you won’t need a web developer to build your site.

Also, there are hundreds of free WordPress tutorials you’ll find on YouTube, which can help you get started with WordPress easily and affordably.

2. Find a Specific Niche

Once your website is set up, the next step is to find a niche in web hosting.

It is important to find a specific niche that you can target.

For example, if you are focusing on small businesses, then make sure to offer services tailored towards small businesses. Or, if you are targeting freelancers, make sure to include the services that they need.

By focusing on a specific niche, you can provide better-quality services and stand out from the competition and give people a reason to stick to your business.

After all, you cannot compete with the big, well-known web providers when it comes to low prices and a wide selection of hosting products. So, your best option is to offer specialized services. This way, you can differentiate yourself from the competition.

It may also help your site move up the Google rankings, as there is less competition in a specialized market. It may also be less expensive to advertise.

3. Create an Affiliate Program

Another great way to acquire new web hosting clients is to create an affiliate program for your business. Almost all hosting companies run affiliate programs.

When you set up an affiliate program for your business, you invite other people who have established websites or blogs to promote your hosting services. You pay your affiliates a commission every time they refer someone to your business.

Affiliate programs are a great way to acquire new web hosting clients without spending too much money on advertising or SEO campaigns.

The best thing about this strategy is that you only pay when someone actually signs up for your services. So, you don’t have to spend money in a hope that people will sign up. You pay only after the customer has signed up.

4. Use Relevant Forums

You can also join relevant forums that discuss web hosting services and include links to your website in your signature. Just don’t spam the forum with links.

You should actively participate in the discussion and answer any questions people have about web hosting. This way, you can build credibility and trust among users. People would like to check out your services if you can provide them with helpful advice.

This is an excellent way to get new customers because you can answer people’s questions and give advice related to web hosting.

People often visit forums to find recommendations and advice on web hosting services. You can join these forums and become a key player in the discussion.

The idea is quite simple, but it’s very effective.

5. SEO, Blogging, and Content Marketing

SEO, blogging, and content marketing are undoubtedly the most effective ways to attract new customers and promote your web hosting services.

Every website needs SEO to rank well in organic search engine results.

So, you should make sure your site is optimized for SEO. You can optimize your website for search engine ranking by adding relevant keywords, internal linking, optimizing your loading speed, and various other SEO tactics.

You should also create blog posts and other content related to web hosting services, such as tutorials and helpful articles. This will not only help your SEO efforts and improve your search rankings but also help build trust with potential customers.

Also, you should promote your content on social media to reach a wider audience.

The idea is to create content that is relevant and helpful to web hosting customers. You can write great articles related to web hosting, tips, reviews, and even case studies.

Finally, content marketing is a great way to build relationships with potential customers and create brand recognition. The more people are familiar with your brand, the more likely they are to purchase your hosting services.

All of these strategies are very effective in acquiring new clients for your web hosting business without spending too much money on advertising. With a bit of creativity and hard work, you can grow your web hosting business. Just remember to stay focused on providing quality services and help to your customers. That’s the key to success.

How Much Money Can You Make?

You can make $100 – $200 per month within 6 months, mostly depending on the number of accounts you have. If you are selling only monthly plans, you can make even more money and it’ll be a recurring income.

If you are looking for a more reliable and profitable business, then you should start offering dedicated hosting services. It is the most expensive type of hosting, but it also delivers the best performance. The server resources are dedicated to a single website only. So, you will have maximum control.

Well, it can be hard to find customers who will opt for dedicated hosting, but if you can manage to get a few clients, you can make a very good profit. And, the average monthly income for a dedicated hosting provider is $1,000 – $2,000.

As already mentioned, the best way to make money with a web hosting business is to focus on the services that are in high demand. As a beginner, you can start with shared hosting plans, then move to selling VPS plans, and finally end up with dedicated hosting services.

However, running a web hosting business is not easy.

You need to focus on the services that are in high demand and offer a good profit margin.

Also, it is important to choose the right hosting provider. There are many hosting providers out there, but not all of them offer quality services. So, you need to do your research before you decide to partner with a hosting provider.

If you want to skip the research and get straight to the best choices, then you should check out Bluehost immediately.

Best Web Hosting Billing Software

With billing management software, you can easily manage and track your customer’s payments and billing information. As a web hosting reseller, you can use this software to monitor customers’ payments, track the status of each account, manage automated billing for multiple accounts, and so much more.

In this section, we’ll learn about the most popular billing software. Most hosting companies offer this software as part of their reseller program.


WHMCS is a complete billing and automation platform for web hosting providers, including resellers. It has powerful features to help track customer payments, automate billing, and provide customer service options. Additionally, WHMCS offers an in-depth dashboard with detailed reporting capabilities that can be used to understand your customer’s needs and make adjustments to improve your service.

Click here to learn more

Best Web Hosting Business Alternatives

Apart from web hosting and reselling businesses, there are plenty of other money-making ideas. Every business has its pros and cons. Below are some of the most popular alternative business ideas that you can explore.

Blogging for Money

Blogging is one of the most common ways to make money online.

It involves creating content and getting paid for it. This can be done by setting up a blog, writing about topics you’re passionate about, and monetizing your blog with ads and affiliate links.

Dropshipping/drop servicing

Dropshipping is an e-commerce business model in which the seller does not keep products in stock. Instead, the orders are fulfilled by a third-party supplier and shipped directly to the customer.

This eliminates the need to buy and store inventory.

Dropservicing is an extension of the dropshipping business model. Instead of selling physical products, you can offer services to your customers and have them fulfilled by third-party providers. This business model is perfect for people who want to start an online business without the hassle of dealing with physical products.

Affiliate Marketing

Affiliate marketing is a type of performance-based marketing in which a business rewards its affiliates for each customer brought in by the affiliate’s own marketing efforts. You can join affiliate programs and earn money by promoting products or services on your blog or website. The income potential is truly limitless.

While there are plenty of other ways to make your first dollar online, these are some of the most popular and reliable sources for generating a steady income. Research each of them carefully to determine which business model is right for you.

Frequently Asked Questions

Even though I’ve already covered almost all the basics of starting a web hosting reselling business, there are still some common questions about this business model.

Here are the answers to some of the more frequently asked questions.

What is Reseller Hosting Business?

A reseller hosting business is a form of web hosting in which the reseller purchases services from a larger hosting provider and then sell these services to end users. The reseller does not typically manage their own servers but instead relies on the larger hosting provider for technical support and maintenance.

Is Reseller Hosting Profitable?

Yes, reseller hosting can be profitable. Depending on the size and scope of your business, you can make a good income from reselling hosting services.

Can I Make a Living Selling Web Hosting?

Yes, you can make a living selling web hosting. The key is to find the right hosting provider, set competitive prices, and find the right customers. With the right approach, you can build a successful web hosting reselling business that generates a steady income.

How Much Does It Cost to Start Reselling Hosting?

The cost of starting a web hosting reselling business depends on the type of services you offer and the hosting plan you choose. Generally, you can expect to spend anywhere from $10-$50 per month on hosting services. Additionally, you will also need to spend on marketing and other operational costs.

Is Affiliate Marketing Better than Reseller Hosting?

It depends on your goal. Affiliate marketing is typically better for short-term income while reseller hosting is better for long-term income. Depending on your goals and resources, you may decide to do both. Both methods can generate good money if done right. You can do it from home using just a laptop and an internet connection.

Final Words and Thoughts

So, is a web hosting business profitable?

The answer is yes.

But, it takes hard work and dedication to make your business successful. Well, it’s no different than any other business.

When you start a web hosting business, it’s a good idea to partner up with a well-established web hosting company like InMotion. That way, you can lower your costs and grow your business more easily.

To be honest, the web hosting business is not for everyone, but if you have the right attitude and work ethic, it can be very profitable.

What skills are needed to run a hosting business?

Basic computer skills are needed to start a web hosting business.

You need to be able to set up and manage your own website, as well as understand the basics of web hosting and how it works.

In addition, you’ll need to be familiar with common marketing techniques, such as SEO (search engine optimization) and PPC (pay-per-click). This will help you promote your business site and get regular paying clients.

How much money will you need to get started?

In reality, it all depends on how much you want to grow your web hosting business and how quickly you want to expand.

In conclusion, if you have the skills to run a web hosting business, then it is a very profitable industry with the potential to generate a good monthly income. You can get started for as little as $20/month with InMotion.

So, don’t let your dreams of owning your own web hosting business fade away!

Go on and make them come true!

Finally, a small request:

If you have found this article useful, kindly share it with your friends and followers on Facebook, Twitter, or any other social site.

It really helps. Thank you for your time! 🙂

Don’t forget to leave a comment below if you have any related questions. I will be more than happy to help you out.

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Tamal Kr. Chandra

I am Tamal, a passionate blogger and the creative mind behind Digital Millions. From blogging and affiliate marketing to e-commerce and SEO, I write easy-to-follow guides and give honest advice about the best tools to build a business online and get financially free.