It is not uncommon for a web design and/or web development company, or agency to look at additional opportunities they can offer to their clients. Over time, more and more agencies are turning to web hosting as a key revenue stream. So how can you leverage hosting for your business?
The two primary options are Reseller Hosting and Affiliate Programs. Both are excellent choices though it can be difficult to decide which is the best for you and for your business. In this article, we are going to cover the key differences, advantages, and disadvantages of both Reseller Hosting and Affiliate Programs.
Reseller vs Affiliate Programs
Choosing what is best for you and your business will primarily come down to the revenue strategy, time, and effort you would like to put in.
If you are a reseller, you would have rented out space from your Reseller Hosting provider and would essentially be managing your own business. As an affiliate of a web hosting company, you would refer that customer to the web hosting provider at which point you can be fully hands-off and receive a commission for that sale.
Still not sure? Don’t worry, we’ll go into each in more detail below.
What is Reseller Hosting?
Before we get into the specifics of reseller hosting, it is important to know the basics of how web hosting works. If you were to set up a web hosting provider, from scratch, you would need to purchase or lease a dedicated server, install the relevant software such as a control panel and backup utility, configure the server for performance and hardened security, build a website and grow from there. The costs in this process are very significant.
With Reseller Hosting, all of the above has been done for you enabling you to focus on your marketing and growth channels, or your existing customer base. This is thanks to the server already being set up for you by your reseller hosting provider which typically includes a control panel with resources that you can carve out and allocate to your own web hosting customers.
Even though you are saving a lot of headaches in the initial setup process, by opting for a reseller hosting account you are still effectively setting up your own business, or at the very least, another service for your existing business. For example, if you run a web design company called Yellow Web Design, you could offer a hosting product as part of that, Yellow Web Hosting Services.
Advantages of Reseller Hosting
- Low Startup Costs: As your reseller provider will sell multiple reseller packages on a single server, you are effectively splitting the cost between your peers. What could have cost hundreds of dollars per month in a full-blown dedicated server is now in the dens of dollars range.
- Passive Revenue: Web hosting is a subscription business so each customer would pay you monthly or annually. You’ll see constant payments from each and every customer significantly boosting your revenue streams as time goes on.
- Quality services with less work: The quality of your reseller hosting provider will reflect on the quality of hosting you provide your clients. If you love the service provided by your reseller hosting provider, your clients will love your hosting service.
Disadvantages of Reseller Hosting
- Limited Control: As you are renting space and resources from your reseller hosting provider, you wouldn’t have the ability to change the configuration of that server. Instead, you would need to rely on the configuration and software provided by your reseller hosting provider.
- Customer Service: Your clients will not know you are on a reseller package. Instead, all they will see is the name of your company. This means you also have to provide all of the support and overhead which can be consume a significant amount of time.
- Time & Maintenance: As your own web hosting company, you would need to put in the time and resources to maintain your hosting service. For example, you would need to set up a website to offer your service from, and your website would need to be kept up to date with the packages you offer.
What is Affiliate Marketing?
If you thought reseller hosting sounds like a lot of work, affiliate marketing might be a better choice for you. As an affiliate of a web hosting company, you will be able to refer your customers to an existing web hosting company and earn a commission for each sale you bring them. In short, affiliate marketing can be considered a hybrid between a sales and marketing role, whereas reseller hosting you’re the CEO.
The setup process is much more simplified when compared to a reseller package, at most you would need to signup to a web hosting affiliate program at which point you will be given a unique link. That link will be the identifier between your customers and your affiliate account ensuring you are properly credited for each sale you refer to.
Advantages of Affiliate Marketing
- Easy to Start: As an affiliate, there is no need to set up a website and there is no package to order. You would simply register for an affiliate account and share a unique link with your audience.
- Reduced Responsibility: As an affiliate, you essentially hand off the hosting relationship to the company you are referring the customer to. This means they are responsible for everything from servers, support, packages and pricing, and more.
- Significant Revenue Upfront: Web hosting companies typically pay in the range of $50 – $100 per sale. With packages starting as low as $3.95/mo, the web hosting company is making an investment to you for that customer.
Disadvantages of Affiliate Marketing
- One-Time Commissions: Commissions are typically one-time which means the company you referred the customer to would receive the lifetime revenues of that customer, not you, the affiliate.
- Flat Revenue Stream: As an affiliate, you would be paid for each sale with the commissions typically being fixed. You do not benefit should the customer purchase any addons or additional services for their hosting package.
- Limited Flexibility: You would not have any control over the plans & pricing offered by the web hosting company, nor the promotions they offer.
- Affiliate Terms & Conditions: As an affiliate, you would have to honor the policies and procedures set out by the web hosting company you wish to promote.
Does HostDash offer Reseller Hosting?
Yes! Our Reseller Hosting platform has been designed to make it as easy as possible for you to get your company up and running as quickly as possible.
At HostDash all of our reseller packages come with the features below as standard, at a cost-effective price point:
- NVMe Storage
- Free Domain Reseller Account
- Free Web Hosting Automation System (Clientexec)
- Free SSL Certificates
- Free Daily Backups
- Free Website Migrations
- cPanel / WHM Control Panel
- And More!
Backed by a 60 Day Money Back Guarantee & our Expert Support Team, you will be able to have peace of mind enabling you to focus on your business and marketing efforts, while we handle all of the servers and configuration.
Does HostDash have an Affiliate Program?
Yes! Our Affiliate Program is free to join, and you do not need to be a customer of HostDash to become an affiliate.
Our affiliate program offers a flat $50 for each sale you refer to HostDash and we go above and beyond to make it an easy sell for your audience, including but not limited to:
- Unlimited NVMe SSD Storage
- Free Domain Registration
- 24/7 Expert Support
- LiteSpeed Web Server (Up To 20X Faster Turbo Servers)
- 60 Day Money Back Guarantee
- Prices starting at $2.95/mo
Conclusion: Reseller Hosting vs Affiliate Marketing
There are no one-size-fits-all conclusions. If you are looking to enter the hosting market which you choose would ultimately come down to what your end goals are.
If you are looking for a lifetime revenue stream and are willing to put in the time and effort into launching your own company then reseller hosting may be the best fit for you. As a reminder, with reseller hosting, you will be responsible for your clients, managing their support, the package you sell, the billing, and more.
If reseller hosting sounds like it may be a bit much to chew on it, affiliate marketing is likely the best fit for you. As an affiliate, you are able to hand off each customer to a web hosting provider and let them take it from there. After each sale, you make you would be paid for it, albeit only one time.
