Reselling Hosting: Reseller Account vs. Dedicated Server

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If you’re starting a web hosting business, the first decision you need to make is whether to use a dedicated server or a reseller hosting account. Understanding the differences between them will make this choice easier.  

Reseller Hosting Accounts 

A reseller hosting account is a great choice if you are new to reselling hosting and aren’t familiar with operating a dedicated server. A reseller account is much less expensive than a dedicated server and is a great first step into reselling hosting. As you gain proficiency, you can always move to a dedicated server in the future. 

A number of web hosting services offer reseller programs to personalize with your brand. You can set your prices however you want instead of getting a commission. Some web-hosting services will even process the payments to your reselling business. 

Cloud hosting through a reseller account is also scalable. You can expand the number of customers you serve without worrying whether you have the bandwidth to handle their needs.

You don’t even have to be skilled in web hosting to operate a reseller account. Most web-hosting services with reselling programs include 24/7 IT support in their price.

Reseller accounts can be an additional revenue stream for businesses such as design and marketing firms that create web designs for other businesses. It allows them to provide an additional service for customers without hiring additional staff members.

Pros:  

  • An economical way to start your own business
  • Minimal commitment of time
  • Best for those new to reselling hosting 

Cons: 

  • Less control of management 

Dedicated Servers 

If you want more server control as you resell hosting and are proficient in server operation, you may want to choose a dedicated server for your business. Root access to the server and control of software used are a few of the benefits of using a dedicated server instead of a reseller account. 

Advantages of using dedicated servers are that they can be customised and handle larger amounts of traffic. Companies handling large amounts of web traffic may find that it’s worth the cost to have the customization they need.

If you have a dedicated server for your company’s website, reselling extra bandwidth may be a way to add an additional revenue stream and maximize profits. The dedicated server’s bandwidth could be divided among a large number of customers, or it could serve a single company’s web needs.

Dedicated servers are far more expensive than reseller accounts, which is a major disadvantage to choosing this method. Leasing dedicated servers can be more expensive than buying them. 

Another downside to dedicated servers is that systems administrators are completely responsible for web security, including the operating system and frameworks.

Even if you decide to spend the money for a dedicated server, it is hard to compete with the speeds available from a global data center or international facility.

Pros: 

  • More control over management 
  • You can decide which software to use 
  • Can handle large amounts of traffic for your website or a host of customers 

Cons:  

  • Far more expensive than reseller accounts 

How to Choose What’s Best for Your Business

If you’re starting out in the web hosting industry, want to add an additional stream of revenue to an existing business or don’t have a great amount of IT knowledge, opting for a reseller account may be the best choice for you. It would be the simplest solution for starting a web-hosting business. 

However, if you are fortunate enough to have the traffic needs for it, or want to have greater control over software and management, a dedicated server might be worth the cost.

Also Read: Best Web Hosting for Small Businesses

Every web-hosting business has unique needs. Finding the objective advice needed when starting your own business reselling web hosting can be difficult. That’s where 28Msec.com can help. 

Our experience and familiarity with web hosting allows us to provide technical advice to fit your business. We can take the confusion out of IT decisions and can provide guidance that will serve your needs now and in the future.

Contact us online to connect with one of our representatives for web-hosting recommendations that will benefit your business.  

Scott Poole

Scott Poole

With over a decade of experience in building websites, Scott has seen it all... bodged website migrations, nightmare web hosts, ridiculous customer support, etc. He decided to centralise all his knowledge on 28msec to guide and help people find the best host possible.