Adding managed WordPress hosting to your client packages is one of the easiest ways to add value to your services without a lot of extra work. This comprehensive guide will walk you through the process of reselling wordPress hosting, from understanding the basics to implementing advanced strategies for maximizing your profits.
What Does It Mean to Resell Web Hosting?
Reselling web hosting allows you to act as if your agency is the hosting provider, even though you’re partnering with an actual hosting company behind the scenes. While you can resell various types of hosting, we’ll focus on managed WordPress hosting as it requires the least amount of work for you while offering the best possible results for your bottom line.
The basic concept is simple:
- You purchase hosting services in bulk at a discounted rate.
- You resell that WordPress hosting to your clients at a price you set.
- This allows you to bundle your services in ways that provide comprehensive solutions to your clients while significantly increasing your revenue.
For example, if you’re working with a client who needs a new site and hosting setup, you might pay $25/month for the hosting plan but resell it for $50/month, pocketing the difference. Since your clients need hosting for their WordPress sites anyway, it’s an easy sell and a win-win situation.
Why You Should Become a WordPress Hosting Reseller
Reselling hosting offers numerous benefits for agencies and freelancers:
- Recurring Revenue: As you accumulate clients, you’ll see a substantial increase in steady, predictable income.
- Streamlined Workflow: By partnering with a single hosting provider, your team can become experts in one system, improving efficiency when managing multiple client sites.
- Low Maintenance Income: After initial setup, most clients require minimal ongoing work, but the monthly payments continue.
- Complementary Service: Hosting reselling pairs perfectly with other services like web design, development, domain registration, SEO optimization, and content creation.
- Full Control: Reselling allows you to maintain complete control over a client’s web presence and management.
- Diverse Client Base: A wide range of professionals, including database programmers, web copywriters, graphic designers, and internet marketing consultants, find hosting reselling to be a profitable addition to their services.
The Economics of Reselling Web Hosting
Understanding the costs and potential profits is crucial when venturing into hosting reselling. Let’s break down some scenarios to illustrate the financial benefits:
Scenario 1: Individual Plans
Imagine you have 10 clients who need hosting for a full year:
- Cost per client (annual): $300
- Your price to client (with 25% markup): $375
- Total cost for 10 clients: $3,000
- Total revenue from clients: $3,750
- Your profit: $750
Scenario 2: Bulk Plan
Now, let’s look at a bulk plan scenario:
- Cost for a 10-site plan (annual): $1,150
- Your price to clients (at $375/year each): $3,750
- Your profit: $2,600
As you can see, opting for a bulk plan significantly increases your profit margin. You could even charge more per client, further boosting your earnings.
Scenario 3: Premium Pricing
Let’s push the pricing a bit higher:
- Cost for a 10-site plan (annual): $1,150
- Your price to clients (at $50/month or $600/year each): $6,000
- Your profit: $4,850
This scenario demonstrates the potential for substantial profits when you position your hosting as a premium service.
How to Resell WordPress Hosting: A Step-by-Step Guide
- Partner with the Best WordPress Host for Your Business Choose a hosting partner that:
- Understand the reseller and agency model
- Offers excellent performance and security
- Provides robust support for both you and your clients
- Has features that align with your service offerings (e.g., SEO-friendly speed, easy workflows, scalability options)
- Set Good Margins
- Don’t undersell your services. If you’re paying $25 per site, charging just $28 isn’t worth your effort.
- Find the sweet spot between profitability and attractiveness to clients.
- Be transparent about pricing and clearly explain the benefits to your clients.
- Package Your Services Bundling hosting with other services can make it more attractive and less likely for clients to shop around. Consider including:
- Website maintenance
- Security monitoring and malware cleanup
- Regular backups
- Performance optimization
- SSL certificate management
- WordPress core and plugin updates
- Develop a Support Plan Remember, your clients will see you as their host. Be prepared to:
- Offer front-line support for day-to-day issues
- Answer “how-to” questions
- Have a clear escalation process for server-related issues
- Leverage your hosting partner’s support when needed
- Implementing an Efficient Billing Process Manual invoicing for monthly services can quickly become overwhelming. Consider:
- Using recurring billing tools like Stripe
- Creating a hidden page on your website for easy client purchases
- Automating as much of the billing process as possible
Value-Added Services to Bundle with Hosting
To maximize your recurring revenue, consider offering these complementary services:
- Domain Name Management
- Offer domain registration and renewal services
- Consider providing the first year free or at a discounted rate
- Upsell multiple domain extensions for brand protection
- SSL Certificates
- Highlight the SEO and security benefits of SSL
- Offer installation and annual renewal services
- Consider partnering with a provider that offers free SSL certificates to boost your profit margins
- Website Maintenance Plans
- Regular updates to WordPress core, themes, and plugins
- Content updates and small design changes
- Regular site backups and security scans
- Performance Optimization
- Regular site speed audits
- Image optimization
- Caching setup and management
- SEO Services
- Basic on-page SEO implementation
- Regular content updates for SEO
- Monthly SEO reports
- Analytics and Reporting
- Set up and manage Google Analytics
- Provide monthly traffic and performance reports
- Offer insights and recommendations based on data
Best Practices for Successful Hosting Reselling
- Educate Your Clients: Help them understand the value of professional hosting and your bundled services.
- Stay Updated: Keep abreast of the latest WordPress and hosting technologies to provide the best advice to your clients.
- Offer Tiered Plans: Create different levels of service to cater to various client needs and budgets.
- Provide Excellent Support: Quick and helpful support will justify your premium pricing and encourage client loyalty.
- Regular Check-ins: Proactively reach out to clients to ensure their satisfaction and identify upselling opportunities.
- Clear Contracts: Have well-defined agreements that outline your services, responsibilities, and billing terms.
- Streamline Onboarding: Create a smooth process for bringing on new hosting clients, including migration services if needed.
- Monitor and Optimize: Regularly review your costs and pricing to ensure continued profitability.
Conclusion
Reselling WordPress hosting is an excellent way to add a steady stream of recurring revenue to your business while providing valuable services to your clients. By carefully selecting your hosting partner, setting appropriate margins, bundling complementary services, and implementing efficient systems for billing and support, you can create a profitable and sustainable hosting reselling business.
Remember, the key to success in reselling hosting is to position yourself as a comprehensive solution provider, not just a middleman. By offering expert guidance, top-notch support, and a range of value-added services, you’ll differentiate yourself from generic hosting providers and justify your premium pricing.
As you grow your reselling business, continually assess your offerings, pricing, and processes to ensure you’re maximizing your profits while delivering exceptional value to your clients. With the right approach, reselling WordPress hosting can become a cornerstone of your agency’s success, providing both financial stability and stronger client relationships.
