Drop Hosting: A Newborn Yet A Lucrative Online Business

Author:

Odeh Ahwal

Published:

February 22, 2023

Updated:

February 23, 2023

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Dropshipping is one of the biggest e-commerce business models that have the potential to generate millions in home-based earnings, but did you know that physical products is not the only thing you can resell? Yup, web hosting can also be resold, and here’s where the name “Drop hosting” has come from.

Drop hosting is a business model where you resell other companies’ hosting solutions, servers, and bandwidth, and use them as your own, without declaring this to your clients. It requires less technical knowledge and experience and allows you to scale your business faster.

In this article, we’ll be discussing a very lucrative and profitable online business that you can get into without any prior experience or technical knowledge.

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What is Drop Hosting?

Drop hosting is a new baby-born business that involves selling hosting packages while having an entire support team managing the business for you, without the need to be running an actual web hosting company, hiring developers, or paying any salaries!

It’s similar to dropshipping, drop servicing, and print on demand, but instead of selling physical products, printed merch, or digital services, you will be selling reliable automated hosting solutions in this case.

How Does Drop Hosting Work?

The way this business works is very simple and straightforward. First, you need to find a reliable hosting company like 10Web that has a white-label program that allows you to rebrand its platform. After finding an outsourcing web hosting company, you would need to start finding potential clients.

What is The Best Drop Hosting Platform?

You can use any Hosting Service that provides a profitable agency plan. The one that I recommend today and that has everything you need to get started with this business model is called 10Web.

10Web is an AI-powered WordPress platform that allows you to build websites with no hassle. Some of its features are an automated website builder, hosting, and page speed booster.

The main reason I recommended 10Web is that it has a unique white label that allows you to white-label your WordPress dashboard of websites hosted at 10Web, and take your business to the next level.

10Web offers white labeling for a number of its services:

10Web Booster
10Web Builder
10Web SEO
10Web Cache

This means that, once you upload your logo, the name of your brand, and apply the white label, all of the above services will have your logo and your brand name.

The 3 Simple Steps of Starting a Drop Hosting Reseller Business

Thinking of starting a hosting reseller business? Below are the exact 3 steps you need to follow:

Step 1. Find a Reliable White-Label Hosting Solution

The first obvious move in starting a web hosting business is to find a reliable company where you can resell its services for a profit. Some of the things you should be taking into consideration when searching for hosting companies are ease of use, variety of features, affordable, and a white-label program.

What is white-label hosting?

White-label hosting is a re-brandable web hosting solution that allows you to resell another hosting company’s servers, bandwidth, and hosting services without the need to run an actual company, hire any developers, or even pay salaries! This will allow you to scale your business faster while only focusing on acquiring the clients.

What is the best web hosting reseller program?

The best reseller web hosting solution of 2023 is 10Web. 10Web is not just a random web hosting company that allows you to resell its hosting solutions. It has a lot of features that can allow you to stand out and offer insane value to your clients, such as a speed booster, SEO optimizer, caching, backups, AI assistant, an easy-to-use website builder, and much more!

Step 2. Sign Up For Its Agency Plan

After finding and determining the web hosting service that you’d like to resell, you would need to sign up for its agency plan that makes you eligible for white-labeling its services and using them as if you were the original owner.

Step 3. Promote Your Services to Get Clients

After signing up for a white-label program, finding clients is what you should be going after next! Although there are many ways you can acquire new clients, this is the part where people mostly get stuck when starting a new business.

Keep reading… In a few, I will share with you some ways you can get clients for your new web hosting business.

Drop Hosting Vs. Dropshipping

Dropshipping is a business model that involves selling other people’s physical products without owning any stock or inventory. Generally speaking, dropshippers are usually connected to suppliers who own the product and are ready to sort, pack, and ship on the dropshippers’ behalf!

With drop hosting, you are not selling any physical products from third-party suppliers. Instead, you will be rebranding and reselling other hosting companies’ solutions.

Drop Hosting Vs. White Labeling

Drop hosting is a business model that involves selling other companies’ web hosting solutions without having an actual web hosting company. It’s a form of white labeling an actual hosting company.

White labeling, on the other hand, is the overall act of rebranding a certain product or service and making it appear as if you’ve made it! White-label products come with no branding and generic packaging that can be filled in with your trade dress.

Similar to products, white-label services like SEO are usually delivered with a generic report that can be branded with the marketer’s trading dress.

Drop Hosting Vs. Drop Servicing

Drop servicing is a business model that involves selling other people’s services online while having freelancers do the actual service on your behalf, without the need to declare this to your clients. Drop hosting is a form of drop servicing and the digital service that you will be selling here is web hosting.

How To Get Web Hosting Drop Servicing Clients

Although starting an online business is easy, getting traffic, sales, and clients is the stage where most people get stuck. Here, I’ll share with you a couple of ways of getting drop servicing clients and generating sales.

Before going into that, I bet you are asking…

Why would someone buy from me when they can do this themselves?

This is a question that I always hear whenever I share with my wife a new service-based strategy or business model. Well, my answer is always very simple:

Not everyone has the time and skills to handle technical tasks.
People purchase from others who they love and trust.
It’s similar to dropshipping and drop servicing. You outsource products/services for a low price and resell them for a higher price. The difference between both amounts is your profit!

With all that being said, here are some of the ways that you can promote your business and potentially get new clients and sales:

1. Get started on YouTube – YouTube can get you in front of millions of people around the world! You don’t need any fancy stuff or tools to get started on the platform. In fact, a lot of YouTubers are doing it successfully without even showing their faces (learn more about this here).

Just jump in, give great value, build an audience that trusts you, and monetize later!

2. Create content on Medium or/and Social Media – Similar to YouTube, creating content on Medium or social media would require consistency and you should give huge value so that people can start recognizing and following you.

Ultimately, you can start your own self-hosted blog which will give you more control over your content, leads, and traffic.

3. Create premium landing pages and run paid ads – Free traffic is great and everything, but it requires a lot of time and it’s harder to scale. If you’re looking forward to getting in front of hundreds if not thousands of potential clients and can afford the cost, paid advertising should be your way to go!

Companies like Clickfunnels allow you to create professional sales funnels and lead pages with minimal experience and effort.

4. Cold email outreach – As put by WiseStamp, cold email outreach is when you send an email to a potential customer that doesn’t know you or your business. If done right, it’s powerful and can get you tens of potential clients.

When it comes to cold email outreach, I’m usually systematic and like to track everything. Instead of outreaching out to random websites and business owners found on Google and getting lost in the limitless data found, I leverage a tool called Leads Gorilla that allows me to find leads in scale, connect my Gmail account, and reach out to them systematically within the software.

Conclusion

Starting a web hosting business has always been on my bucket list, but some of the barriers to getting started were my limited knowledge in this field, poor coding experience, and the high costs!

Thanks to the internet for everything that it’s offering today. Solutions like 10Web allow you to start a profitable web hosting business with zero technical or coding experience, for less than $1,000.

In this article, we’ve discussed a new lucrative business model called drop hosting, which is similar to dropshipping, but instead of selling physical products, you would be selling web hosting solutions.

By the time you finish reading this article, you should be familiar with the business model, the best white-label hosting company, and the actual steps of getting started with this new side hustle.

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Cheers,
Odeh Ahwal