Difference Between Reseller and Affiliate Programs

If you are running a web design or web development business or freelancing as one, then you have a great opportunity to expand your portfolio and grow your business by adding web hosting services to your offerings. There are two ways you can do this. One is by becoming a hosting reseller and the other by becoming a hosting affiliate. Each of these opportunities is unique and have their benefits.

Read on to understand the difference between reseller hosting and hosting affiliate programs so you can determine which one is right for you.

Reseller hosting vs. Affiliate Programs

As a reseller, you sell your hosting capabilities to your clients. You can buy hosting plans from third party hosting providers in bulk, ranging from cloud to VPS hosting and across different hosting platforms, depending on what you want to sell and what your clients need. Reselling becomes an additional service to your current business offerings. You can opt for white label hosting, which allows you to add your business branding to the hosting service, without disclosing the third party providers to your clients. There is minimal investment involved in reselling, which is usually the monthly/annual cost of hosting package that you buy, which will again depend on the products/services/features you choose. There is no restriction on how you can operate and run your business and what you will charge your clients.

Hosting affiliates, on the other hand, are associated with the hosting provider companies as a commissioned partner. You earn a certain percentage of sales that the company makes through your affiliate website. It is simply affiliate marketing. You can add links to third-party websites or offer the products directly to your clients. Every time someone purchases a hosting plan from the links on your site, you will earn a commission. There is no standard revenue model and can vary according to the hosting provider and its business model.

Features of Reseller Hosting

  • Reseller hosting yields a steady, additional income, over and above your existing business.
  • It adds more value to your web design or development business since people treat you as a one-stop solution.
  • It allows you more control over your business by planning, marketing, and running it in your way.
  • You can grow your business over time and graduate from reseller to a full-fledged hosting service provider. You can also scale up your volumes by adding more capabilities and serving more clients.

Features of Hosting Affiliates

  • It is not effort or resource-intensive at all. You have no responsibility towards the clients who purchase the plan from your site.
  • It is less time consuming to manage than reseller hosting.
  • Affiliate programs have zero investments, since, all you have to do is advertise your hosting provider’s products on your business website.
  • You can easily monetize your website with affiliate ads.

Summing up…

Each of these options has its respective pros and cons, and cannot be replaced for the other. To decide which one you should opt for, you need to determine what you want to do. Whether you want to grow your business and reach the next level in hosting business or simply add a revenue stream to your existing business, will help you decide which of these is best for you.