If you are passionate about making legit money online in Kenya, reselling web hosting is a gold mine you can exploit.
With a few coins, you can get started and grow your web hosting business to great heights within a few months of patience.
And how viable is the trade? How good is the market?
Well, the trade of websites and everything around websites is booming across Africa, going by the latest ICANN stats.
Kenya ranks second most successful African market for web addresses after South Africa.
More than 1,000 web addresses are registered every day in Kenya.
And that’s big! You want to be on the right side of these statistics.
You don’t have to fall victim to the many online get-rich-quick scams.
Start a web hosting business and make legit money online in Kenya.
And the next thing that rings is CAPITAL.
Well, I am here to actually tell you that you can start small.
We will refer to you as a web hosting reseller.
Being a reseller means obtaining web hosting resources in wholesale and selling them in smaller quantities.
In fact, most web hosting giants started as resellers and later grew into big brands.
This article explores all the basics of reseller hosting, exploring all that you require to know to be a successful web hosting reseller.
Let’s get started!
Reseller Web Hosting Fundamentals
Think about reselling web hosting as being similar to acquiring an apartment and renting out the rooms to several tenants.
It goes without saying that you must get your mathematics correct right from the beginning.
This is because you can only make profits by renting out space at a higher value than you will be required to pay.
Most Reseller packages are billed monthly, allowing you to always adjust your plans easily.
Like any other legit journey to a good online income, reselling web hosting will require effort, patience and readiness to learn and adapt.
This guide will help you do all the learning you need to get started.
I will be highlighting the tools and technologies that you need, a business plan template and the precautions you need to take.
But first, you need to do enough window shopping.
Look for a reputable, reliable web hosting company with affordable yet loaded reseller packages.
You want to get as much disc space, bandwidth and RAM as possible, at the cheapest price possible, without compromising on uptime and speed.
To help you through this, I will be highlighting the best web hosts with reseller plans right here.
Reseller web hosting is also a good option for web designers with many clients.
Your clients need hosting anyway, so why not get that extra dollar by being their web hosting provider?
Simply said, reseller hosting is an arrangement to sell hosting plans to your clients through a third-party hosting provider.
As a reseller, you will be riding on an already established and working system.
Support for your clients is availed by your master reseller company.
This leaves you with very few and easy technical tasks to do such as setting up clients’ accounts.
And that actually gives you ample time to focus on marketing your services.
How much profit you make depends on among other things:
✓ Your choice of a reseller hosting provider
✓ The number of clients you can get
✓ The prices offered by your competition
Some good reads for you:
Top 5 Companies offering Reseller web Hosting in Kenya
Top 5 Global Companies offering Reseller Web Hosting
What Profit Can I Make Reselling Web Hosting?
Suppose you subscribe to the HostPinnacle Starter Reseller plan for Ksh 2,000 per month.
These are the resources you get, to be shared out to your clients.
✓ 100GB SSD
✓ Unlimited Bandwidth
✓ 50 Cpanel accounts
✓ A Free Domain for you
✓ Unlimited FREE SSL Certificates
✓ Overselling Enabled
Let’s do some math.
As earlier mentioned, you have to do your calculations conscious of your competition.
How much do they charge for their hosting plans?
Plus what are their plan schedules? Monthly, quarterly or annual?
Well, most web hosts in Kenya have annual web hosting plans.
So let’s work with a period of one year.
If you share out 100GB to 50 customers, everyone would get:
✓ 2GB disc space
✓ Unlimited bandwidth
✓ A Free SSL Certificate
Before doing the pricing, let’s have a look at our competition.
hostPoa sells the same resources (2GB disc space, unlimited bandwidth and a Free SSL certificate) for Ksh 1600/yr.
Movehost sells 5GB disc space and 10GB monthly bandwidth at Ksh 500/yr. You however have to buy an SSL certificate separately for Ksh. 2,000. This means that the total cost for the plan is Ksh. 2,500.
At Ehost Kenya, you get 2Gb Web Space, 20GB Bandwidth and a Free SSL Certificate for Ksh 1,500/yr.
Hostpinnacle, Truehost and Kenya Web Experts do not offer web hosting plans with less than 30GB.
Let’s do the math with and without overselling.
100GB Disc Space, Unlimited Bandwidth Without Overselling
Assuming you get 50 clients and they all agree to subscribe to your hosting plans.
If you charge Ksh. 2,000 for 2GB disc space, unlimited bandwidth and a free SSL, your offer would still be better than several established web hosting companies in Kenya.
50 customers – @ 2GB Disk Space [each] – Unlimited Bandwidth [each] – Ksh. 2000/year = Ksh. 100,000 total Revenue.
Profit = Ksh. 100,000 – Ksh. 24,000 = Ksh. 76,000/yr
Considering other costs such as customer service and any add-ons needed, you have more than Ksh.60,000 in net gains in a good year.
While 60,000/year in profit may not be your dream, the Return on Investment is incredible.
You can then scale your business upwards, by getting more resources or starting an independent web hosting business altogether.
Assuming you get 50 clients and taking advantage of the overselling benefit, let’s see what profits you would get.
Overselling allows you to sell more disc space than you have, in the hope that your clients will not hit their limits anytime soon.
This means you can sell 10GB to 50 new clients (a total of 500GB), even when you have 100GB allocated to your account.
You are in charge of the resources, and you can always make the necessary changes to your clients’ allocations.
Let’s say you decide to inflate your disc space to 500GB as you start.
Of course, every website owner has a starting point, during which they cannot utilize more than 20% of the allocated resources.
After building a good client population, and as their websites grow in size, you can get more resources from your reseller hosting partner.
Now, let’s say you design your plans with 10GB disc space, unlimited bandwidth and a free SSL certificate.
If you charge Ksh. 2,500/year for such a plan, your offer would be better than several top web hosts in Kenya.
50 customers – @ Ksh. 2500/yr = Ksh. 125,000 total Revenue.
Profit = Ksh. 125,000 – Ksh. 24,000 = Ksh. 121,000/yr
Less other expenses, you have more than Ksh.90,000 in profits in a single year.
Not bad for a startup, right?
As your clients grow in number, you will be forced to opt for better reseller plans.
500GB Disc Space, Unlimited Bandwidth With Overselling
For Ksh 3,000, this is what you get at HostPinnacle, plus unlimited cPanel accounts for your clients.
This means you can sell to a million clients, if their needs can be met by the resources available in your plans.
This also means you can appear more professional by designing about three different hosting plans.
You are essentially splitting your reseller resources to different plans with different prices.
You want the most endowed plans to match the best web hosting companies in Kenya such as HostPinnacle and Truehost.
This means you have to design some good plans with more than 20GB disc space, unlimited bandwidth and a FREE SSL certificate.
Such a plan would be better than a Kenya Web Experts’ Starter package, which features metered bandwidth with no FREE SSL certificate.
Very possible, especially with the overselling benefit.
So let’s do some math.
Let’s say you resell up to 1TB disc space.
With this, you can set up 50 accounts with 20GB disc space.
However, if you will be serving clients with different site needs, you want to set up smaller packages also.
Let’s say 20 Gold Hosting Plans, each with 20GB disc space, a total of 400GB.
All with a Free SSL certificate and unlimited bandwidth.
You have a balance of 600GB.
Let’s do 50 Standard Hosting Plans with 10GB disc space, a total of 500GB.
Still with a Free SSL certificate and unlimited bandwidth for every client.
You still have a balance of 100GB.
With 100GB you can do 50 Starter Hosting Plans, each with 1GB disc space.
50GB disc space.
To attract more clients to your side, you can use the remaining 50GB to do 100 FREE Web Hosting plans
Each of the free plans gets 500MB disc space, a Free SSL certificate and unlimited bandwidth.
To ensure the Free hosting beneficiaries subscribe to one of your packages, let’s say you limit the offer to a period of 3 months.
This would undeniably be the best free web hosting offer available in Kenya.
Let’s do our pricing and see the expected ROI.
✓ 20 Gold Hosting Plans @ Ksh. 2,500/year = Ksh. 50,000/yr.
✓ 50 Standard Hosting Plans @ Ksh. 1500/yr = Ksh. 75,000/yr.
✓ 50 Starter Hosting Plans @ 1000/yr = Ksh. 50,000/yr.
Total revenue = Ksh. 175,000/yr.
Less what you pay to your reseller partner, Ksh. 36,000.
Less additional costs about Ksh. 30,000
Net gains Ksh. 109,000/yr.
This is money you are making online from the comfort of your home.
Reselling web hosting services is indeed one of the most profitable legit online ventures in Kenya and beyond.
Benefits Of Reselling Web Hosting
Your reseller hosting partner handles all the server issues, backups and all other technical issues.
All you have to do is look for clients, handle the billing, and provide basic technical support.
As long as you’re working with a reputable company, your returns will obviously be astronomical, with very few overhead tasks.
Besides, you are at liberty to charge services like website migrations for your clients, something your reseller partner gives you for FREE.
Reputable reseller partners such as Hostpinnacle will also give you 100% Whitelabel benefits.
This means that you are able to resell their services in your name, without your clients detecting that you are a reseller.
This enables you to build your brand with time, to an independent web hosting company in the future.