Art-Of-Reselling-Hosting 2
Art-Of-Reselling-Hosting 2
Art-Of-Reselling-Hosting 2
The basic outline of the benefit is that you buy hosting services in bulk at a discounted rate,
and then you resell that WordPress hosting to your own clients at whatever price you want.
This allows you to bundle up your services in ways that’ll give the client everything they
need, while also drastically increasing your bottom line.
For example, let’s say you’re working with a client who wants you to build them a brand new
site and help them set up the hosting. Even though the hosting plan may only cost $15/month,
you can resell it for $40/month and pocket the extra change – how great is that? You know
your clients need hosting services for their WordPress sites, so it’s a super easy sell.
And that’s just the first perk of becoming a web hosting reseller! Let’s talk about a few more.
But on top of increasing your income, reselling hosting offers a bunch of added benefits for
your team. When you decide to resell web hosting, you’ll want to partner with a hosting
provider that you trust. And partnering with a great managed WordPress host allows your
agency to easily know the state of each of your clients’ sites. Then when one of those clients
calls on you to update a page, you’ll be well-versed in the standard setup instead of fumbling
through a different and unfamiliar hosting panel each time. By having all of your client sites on
the same host, your team won’t have to
waste a bunch of time reacquainting
themselves with the site. Reselling hosting offers
The best part of becoming a web hosting you a fuss-free way to earn
reseller, of course, is that it offers you a residual income.
fuss-free way to earn residual income. Most
of your clients, after the initial setup, will
need very little work to maintain their account, but that same check keeps coming in,
month after month. These add up quickly and can turn into a neat and tidy profit
with a short onboarding experience.
A reseller hosting business is incredibly compatible with a bunch of the other services you
already offer, such as web design, web development, domain name registration, SEO
optimization, or blogging. On top of that, many designers and developers find that becoming a
reseller allows them to maintain full control of a client’s web presence and management.
We’ve found that a huge variety of people (including database programmers, web copywriters,
graphic designers, internet marketing consultants, and web designers) find offering web
hosting to their clients to be a super profitable enterprise.
Let’s say you have 10 clients who need hosting for a full year. Here’s an example using
Flywheel’s pricing:
OPTION #1
You could buy them each an annual Tiny plan (which would cost you $165/year, since one
month is free with annual packages) and add a 25% markup on each one, at a cost to your
clients of $207/year per site. Your total cost to host all of them is $1,650, and they’re paying you
$2,070, so your profit is $420.
OPTION #2
You could purchase a bulk plan right off the bat. For 10 sites, you’d opt for the Freelance plan,
which would cost you a total of just $1,100/year. Even if you just charge your clients the typical
cost of a standalone Tiny plan ($165/year), you’re looking at getting $1,650/year from your
clients, which already puts you at a profit of $550. Make those margins even better (let’s go
back to the 25% markup, for example, and charge your clients $207/year), and you’re
pocketing a profit of $970, which is a massive improvement over Option One.
Or, we could go back to our very first example of charging your clients a baseline of
$40/month ($480/year), which would end up adding a big fat $3,700 of profit (!!!!!) to your
bottom line every single year. Of course, it’s completely up to you to set the prices, so the
potential for profit here is pretty unlimited!
When you’re reselling hosting, you need to work with a host that you trust. One that
understands both the reseller and agency model, and will help you achieve your revenue goals.
If you’re offering SEO services, speed becomes crucial. If you’re offering turnkey solutions,
better workflows become super important. Or, perhaps you’re hosting high-traffic websites and
you’re looking for a host that you can consult with on how to effectively scale your client sites.
Whatever the case is, choosing the right host to partner with will help you optimize your work
and provide superior services for your clients.
Take Flywheel, for example. We were built from the ground up to be the best possible hosting
and management solution for agencies, designers, and developers. Our easy-to-use dashboard
allows agencies to access all of their clients from one location. Our platform comes equipped
with blazing fast performance, top-notch security, and nightly backups for every single site.
And if anything ever goes awry, our world-class WordPress support team provides help for both
you and your clients.
Whoever you partner with, make sure you have an exceptional relationship with them and
know they’ll be there to support both your agency and your clients.
Become an exclusive
Agency Partner
Our reseller program comes with sweet
swag, free hosting, and so much more.
Boost your bottom line by including Flywheel’s incredibly reliable WordPress hosting as a part
of your agency’s services. Our reseller program makes it a breeze for you to maintain your
client’s websites without worrying about server management, WordPress updates, or hacking
headaches. Apply to become an exclusive Agency Partner and start reselling hosting today!
APPLY NOW
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2. SET GOOD MARGINS
The next step in successfully reselling web hosting is to set good margins for what you’re
selling. If you’re going to do it, make it worth your while. If you’re paying $10 per site to your
host, don’t just charge your clients a measly $12. Healthy margins will help make reselling a
main drive of recurring revenue.
All in all, it’s best if you find a way to walk that fine line, setting the perfect price that’s profitable
to you as well as attractive to your clients. Setting a price too high may force your customers to
turn to your competition. Make sure you set a stable, clear price without hidden charges, and
explain all the benefits your client will receive by hosting their site with you!
(See the cost section above for a little reminder, or the next step for an excellent suggestion on
packages and pricing!)
Some clever clients may see that you’re charging $50/month for hosting and seek out a
cheaper price on the web. If you’re offering maintenance plans, one option is to just include
the hosting services for “free.” This avoids the cost of hosting becoming a discussion point and
will discourage your clients from looking elsewhere, since the price is attached to multiple
services that you’re providing.
Depending on your hosting partner, you may be able to take credit for a lot of the features your
host offers. For example, because Flywheel is a managed WordPress host, we provide you with
a ton of features that you can advertise on your client packages as a way to showcase the value
they’re getting for their money. For example, you can tell your clients that “you” will:
• Provide top-notch WordPress security and malware protection (with free malware cleanup
off the bat!)
Of course, in this case, we would be handling all of this in the background for you!
Remember that your client considers you the host of their site, not the actual hosting provider.
If their site is down or they’re seeing a “white screen of death,” they’ll be calling you, at which
point the quality of support you receive from your host may mean the difference between
reselling hosting earning you money or costing you money.
So as a reseller, your main responsibilities are to offer front-of-the-line support for your clients.
This means that you may need to resolve any day-to-day issues as they come up, or potentially
answer any ‘how-to’ questions. They deal with you directly, adding value to your relationship
with your client and allowing you to charge them for hosting and management without seeing
that they’re actually on Flywheel or the host of your choice.
So back to our first point: be sure to find a great partner who understands the agency model
and will help you provide stellar support to your clients. While they may call you up for help,
it’s such a relief to know that the Flywheel team (staffed with WordPress and hosting experts!)
is here to respond to any questions that you may have. We’d supply you with all the resources
you need and are here to handle any server-related issues that may arise, whether it’s cleaning
up malware (for free!) or pointing DNS. If you get stuck, just hit the Live Chat button on our
website and we’ll help you out!
If you’re looking at adding hosting to your agency’s offerings, focus on how to make monthly
billing a seamless, simple process. You’re probably used to sending the standard invoice to your
clients for other services, but invoicing for monthly services like hosting eventually becomes
a burden. Look at options for recurring billing that keep you out of the weeds and deposit the
monthly payments automatically into your account.
Traditionally, agencies manually invoice clients as needed. If you plan on manually invoicing
clients for your monthly services, it’s going to be a total headache, so we aren’t going to
recommend that at all. To accomplish this without spending a ton of time engineering a
solution, there are a number of awesome tools out there that do the hard work for you. Our
personal favorite is Stripe -- their checkout feature allows you to create simple-to-use buttons
that prompt users to enter their credit card information. You can learn more about it here.
We’ve seen a bunch of different ways to implement a great billing experience for your clients.
One great option is to add a hidden page on your website that your clients can use to purchase
your services. Once you’ve sold them on the ongoing services, link them to the page that
allows them to purchase quickly and easily. On that page, implement a simple Stripe
integration using their checkout feature and start collecting monthly fees!
WordPress hosting is a super profitable way to add a recurring revenue stream to your business,
but why stop there, right!? There are a plenty of other complimentary services that you can
upsell to your clients as well, and they pair really well with hosting. Here are two of our
favorites:
DOMAIN NAMES
Domain names are an obvious add-on! We’re extremely partial to the fine folks at Hover as a
provider, but you can certainly pick and choose your personal favorite. While domains aren’t
super expensive, they do have to be renewed every year, and they can also be purchased for
multiple years at a time.
Because domains are relatively inexpensive, you can also get creative with the way you market
your hosting/maintenance plans; for example, you could offer them the first year of the
domain for free, or at some kind of “introductory price.”
On top of that, many of your larger clients will want to buy up multiple domain names and
domain extensions to prevent confusion and protect their brands, so you can give ‘em a nice,
packaged deal!
SSL, or Secure Sockets Layer, is a protocol used for secure and encrypted communication
between computers. This is especially useful if your client needs to accept sensitive credit card
payment details or login information. Recently, however, Google announced that it would
include SSL as a ranking factor in its search algorithm, so it’s become best practices for every
site to have an SSL certificate. Therefore, upselling SSL to your clients is an easy add, and
installing one is pretty straightforward once you’re used to it. (On Flywheel, you can install an
SSL certificate powered by our friends at Let’s Encrypt for free, so anything you charge your
clients is pure profit!)
If you’re looking for any additional recurring revenue channels outside of
these two, we’ve got a far more in-depth guide on that topic here!
At the end of the day, if you’re ready to get a steadier paycheck and provide your client with
more long-term solutions, reselling hosting is the perfect solution. It allows you to package and
sell our services under your own brand, at your own price, without bearing any of the
infrastructure costs.
Resell hosting
with Flywheel
Call us at (402) 235-6105 or email [email protected]
and mention this ebook for 20% off your first year of any new bulk plan.
LEARN MORE ABOUT OUR EXCLUSIVE
AGENCY PARTNER PROGRAM HERE.
Stop wasting time on server management, security plugins, caching, and all
those other boring repetitive tasks that take your focus away from growing
your business and jeopardize your relationship with clients. Get Flywheel and
get back to doing what you love.
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