For anyone looking to enter the web hosting industry, starting a hosting company is an obvious option that involves a huge initial investment in the infrastructure and manpower required to run and maintain it. However, there are two cost-efficient options of becoming a hosting provider – starting a hosting reseller business or becoming a hosting affiliate. While both have their pros and cons, today, we are going to look at factors that make Reseller Hosting a better option than Affiliate Hosting.
Understanding Reseller Hosting & Affiliate Hosting
If you want to become a hosting reseller, then you buy resources from a Reseller Hosting Provider, create smaller, customized hosting packages, and sell them to your clients for a profit. Reseller plans are available across various platforms and hosting types. Once you sell a hosting package, you become the web host for the client. This means that the site owner will contact you for any upgrades or issues with hosting. Hence, you play an active role as a hosting provider. Further, most Reseller Hosting Providers offer White Label hosting that allows you to create a brand without any mention of the parent hosting company. There is a small amount of investment involved since you have to purchase the resources from the company and create a basic business model to support your clients. However, the price of the hosting package is completely in your control.
On the other hand, an Affiliate Hosting venture is like any other affiliate program. You associate yourself with one or many Web Hosting companies and market their products. Your earnings are based on the commission you receive per sale. There is no investment in hosting needed and all you have to do is promote the companies online and get business.
Why Is Reseller Hosting A Better Option Than Affiliate Hosting?
While affiliate hosting is cheaper and does not require any commitment towards the clients, Reseller Hosting has several benefits that make it a better option.
- With Reseller Hosting, you can generate a steady stream of revenue. AS long as the website is running, it needs a host and most site owners don’t change web hosts unless they are facing problems. Hence, once you establish your business and provide customized services, you will have a constant source of income. With affiliate hosting, since your income depends on marketing other company’s plans, you have no control over your revenue.
- It is a great way for businesses like web development and web design to add value to their business and increase profits. Since Reseller Hosting requires some amount of technical know-how, such businesses can easily position themselves as a one-stop-shop for all website needs. With affiliate hosting, clients won’t know who you are.
- With Reseller Hosting, you can increase your income by creating hosting packages and marketing them the way you want.
- Reseller Hosting is a scalable business model. If you establish yourself in the market, then over time, you can grow into a hosting company yourself! As the popularity of your brand grows, you can add more resources and increase your client base too. With affiliate marketing, your growth is limited to being a hosting affiliate for multiple companies.
Summing Up…
As you can see, Reseller Hosting is more of a business model while affiliate hosting is only a marketing venture. Hence, if you are looking at entering the web hosting industry, then Reseller Hosting is the better option for you. On the other hand, if online marketing is your forte and you are looking at adding another industry to your affiliate partners, then affiliate hosting can be considered. Consider what you want to do before deciding. Good Luck!