Extra Income From Web Hosting: Affiliate vs Reseller

Earn Money with Affiliate Marketing

If you’re looking for an inexpensive and relatively easy way to start your own web hosting business or augment an existing online business with hosting services there are a couple of options you can take.

Affiliate Scheme

As the name implies, an affiliate web host is somebody who uses the influence of their website or social media to send traffic to a web host with whom they have an affiliate agreement. If this directed traffic then converts, the affiliate will receive a percentage of the sales value and this can last for the lifetime of the subscription, however this is not always the case.

Commonly, affiliate providers will offer their affiliate members (i.e. the person attempting to refer sales) a sliding reward scale whereby the more sales you help create the greater the percentage of the sale value you are entitled to. This means that whilst starting out may be a slow process, given time its possible to build up to some appreciable income.

The greatest advantages to becoming an affiliate host is simply how easy it is to do. There’s no need for technical knowledge and no requirement to offer customer support or aftercare, you simply help create the sale, get paid and move on.

Affiliate hosting is also a great option for people who are either great communicators, bloggers, vloggers or people with a large social media presence, for example, or those people/businesses whose services have a synergy with hosting and can offer it to their customers or followers in a rather natural way; a common example being a web designer offering hosting services to customers who have purchased a website build.

Reseller Web Hosting

Reseller web hosting packages essentially allow you to sell another hosting companies services as your own. Once you’ve paid your monthly reseller subscription any income you then make from web hosting sales is yours.

Becoming a reseller web host is much more involved, technically and financially, compared with becoming an affiliate however the potential rewards are significantly greater.

Reseller web hosting packages are reasonably popular with people who want to start their own hosing business yet lack the funding to invest in a dedicated server set up and again, with people looking to augment an existing online business. For example, web designers often purchase web hosting reseller packages so that they are able to earn extra income by hosting customer websites. Given the synergy between website creation and hosting, this tends to be a profitable venture for designers and developers.

Another plus to becoming a web hosting reseller is that as your business expands you can quite easily update your hosting infrastructure to facilitate the growth and improve the user experience for your existing customers. When your business becomes sufficiently large to justify the added expenditure you can move to a VPS or dedicated server set up which will give you greater control of the set up and performance of the hosting packages on offer.

The primary disadvantage of becoming a reseller host is that just as you are entitled to all of the profit from the sale you are also solely responsible for providing customer support and aftercare. Normally, this isn’t much of a problem as the majority of issues you encounter will be quite trivial however every now and again you’ll have problems which will be harder to overcome.

Finally,

Choosing between becoming an affiliate or reseller web host is mostly a matter of determining what is the more suitable option given your current circumstances and, in the long term, what you’re looking to achieve. If you have a large online following and you’d like a stress free way to earn some extra money then an affiliate scheme is perfect. By contrast, if you want to start a new business or add another facet to an existing business with a view to long term success then a reseller hosting package would be an excellent investment.

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