Reseller hosting for freelancers and small agencies

Part 3 of the series on choosing the right kind of RackNerd hosting.

If you build websites for clients, sooner or later someone asks "can you host it for me too?". Reseller hosting is one common answer. You buy one plan, split it into separate hosting accounts and give each client their own. This guide explains how that works, what you become responsible for, and when a reseller plan is the wrong choice.

The honest limit: reseller hosting is a small business, not just a product. You take on support, billing and backups for your clients. It suits people who are ready for that, and it is a poor fit for anyone who wants hosting to be someone else's problem.

What is in this guide

• A few words you will see
• What reseller hosting is
• Who it suits
• How a typical setup works
• What becomes your job
• Charging clients
• Keeping client sites safe
• When a client leaves
• Limits
• When to step up
• More in the series

A few words you will see

Term	What it means
Reseller hosting	A hosting plan that lets you create several separate hosting accounts and give them to other people.
cPanel account	One separate hosting account, with its own login, files, email and databases.
WHM	WebHost Manager: the panel you use to create, change and suspend cPanel accounts.
Package	A set of limits you define in WHM, such as disk and number of email accounts, and give to an account.
White label	Hosting that shows your brand rather than the provider's, for example through your own nameservers. Check what a plan supports.
Nameservers	The servers that tell the internet where a domain's website and email live.

For the domain terms used in plan names, see add-on domains and cPanel accounts explained.

What reseller hosting is

A reseller plan gives you a slice of a shared hosting server, plus the right to divide it into several cPanel accounts. Plans are usually described by the number of accounts, the total disk and the total bandwidth.

You manage it all through WHM. Each client gets a cPanel login that only shows their own site. They can manage their own email addresses and files, and you can see and manage all of them.

The provider still runs the server itself: the hardware, the operating system and the server software. You run the accounts on it and the relationship with your clients.

Who it suits

• Freelance web designers who build WordPress or other small sites and want to offer hosting as part of the package.
• Small agencies with a handful of clients who want one place for every site.
• People who look after several sites for others, such as a family member's business, a club and a local charity, and want each one kept separate.

It does not suit people who only host their own sites. For that, one shared hosting account with add-on domains is simpler. See shared hosting vs reseller.

How a typical setup works

1. Buy a plan with room to grow. Count your current clients and add a few. Check the number of accounts, total disk and bandwidth.
2. Log in to WHM. The welcome email gives you the address and login. Change the password and turn on two-factor login if offered.
3. Create packages. Make two or three standard packages, for example "small site" and "site with shop", each with its own disk and email limits. This keeps one client from using up the whole plan.
4. Create one account per client. Use the client's domain as the account's primary domain and assign a package.
5. Point the domain. Change the domain's nameservers or DNS records so it points to the hosting. The welcome email or the provider's knowledge base gives the details.
6. Install the site. Use the account's own cPanel. Many control panels include an installer for WordPress and similar apps.
7. Set up email and SSL. Create the client's email addresses and make sure the site has a working SSL certificate, so it loads over a secure connection.
8. Write down what you did. Keep a simple record for each client: domain, account name, package, where the domain is registered and when it renews.

What becomes your job

As a reseller, your clients come to you, not to the provider. Be clear about this before you start.

Task	Who usually handles it
Server hardware, operating system, server software	The provider
Creating and managing client accounts	You
Client questions and first-line support	You
Updating WordPress, themes and plugins	You or the client, as agreed
Backups you can restore quickly	You, even if the plan has its own
Billing clients and chasing payment	You
Domain renewals	Whoever registered the domain. Agree this in writing
Following the acceptable use policy	You, for every client on your plan

The last row matters. If a client's site breaks the provider's rules, for example by sending spam, it is your plan that is at risk. Agree simple terms with each client that match the provider's policy.

Charging clients

There is no single right price. Most freelancers charge for the service, not just the space: hosting, updates, backups and being the person who answers when something breaks.

• Work out your own cost per client. The numbers here are illustrative: if a plan costs 100 a year and holds ten clients, each client costs you about 10 a year before your time.
• Add your time. Updates, support emails and the occasional fix are the real cost.
• Decide what is included, such as updates and one restore a year, and what is extra, such as redesign work.
• Bill yearly in advance if you can. It is easier to manage than many small monthly payments.
• Keep the domain in the client's name where possible. It avoids arguments if they leave.

Billing software can automate invoices and reminders. Check what is available to you and its licence terms before you rely on it.

Keeping client sites safe

• One account per client. Never put several clients in one account as add-on domains. If one site is hacked, the others share its files.
• Strong, unique passwords. Use a password manager. Give clients their own logins rather than sharing yours.
• Two-factor login on WHM, and on WordPress admin accounts where possible.
• Keep sites updated. Most hacked small sites run an old plugin or theme. Schedule updates.
• Remove unused plugins and old test sites. They are easy ways in.
• Keep your own backups. Download a copy of each site and database regularly, and store it away from the hosting. Test a restore at least once.

When a client leaves

Clients move on. A smooth handover protects your reputation.

1. Agree a date with the client.
2. Give them a full backup of their account, or move it for them if you offered that.
3. Make sure they control the domain and know where it is registered.
4. Remind them to update any email clients and DNS records.
5. Suspend the account after the move, keep a backup for an agreed time, and then remove it.

Limits

• Shared server limits still apply. Every account has resource limits, and the plan as a whole has disk and bandwidth limits. "Unlimited" features are still subject to fair use.
• No custom server software. Reseller hosting runs what the provider installs. Node.js apps, background workers or a VPN need a VPS.
• Bulk email is a bad fit. Newsletters to large lists can break sending limits and harm the server's reputation. Use a dedicated email-sending service for those.
• White label varies. Do not promise clients your own branded nameservers or panels until you have checked what the plan supports.
• Support is still you. The provider will help with the server, not with your client's broken plugin.

When to step up

A reseller plan stops fitting when your clients' sites need more resources than the account limits allow, or when you want to run software a control panel cannot offer. The next step is usually a VPS, where you run everything yourself.

• A 4 GB VPS can host several small client sites, but you then manage the server, its security and its updates as well as the sites. See web servers and securing your VPS.
• Control panels for a VPS exist, some free and some paid. Check the licence before you plan your costs.
• For a larger agency with heavy sites, a dedicated server may be worth a look.

To compare what is available now, start with the cheapest RackNerd VPS guide and check the sales page for reseller and VPS deals.

More in the series

This is part 3 of 5. Previous: Add-on domains and cPanel accounts explained. Next: What is a Windows VPS for?. See the whole series.