Are you planning to start your web hosting firm? Then the initial decision that you must make is what type of web hosting you need to use. Whether to utilize a Reseller Hosting Account or a Dedicated Server, the essential part of this decision-making is understanding the similarities and differences between these options. Once you do so, making your choice will be much easier.
Dedicated servers and reseller hosting accounts are commonly used by many for the purpose of reselling hosting. They provide various advantages as well as disadvantages. It all depends on the control you wish to have, your budget as well as the experience you have with the server management.
For those of you who are looking at beginning a Canadian web hosting firm, quite often, you may encounter this question as to which of these options are good for you. Still, it gets very difficult to choose anyone, especially with advocates that are so vocal on both sides. Many times, it gets extremely difficult to pick out which option could be good for you and your business.
This article focuses on helping our readers to get clarity in order for them to choose either dedicated servers or reseller hosting accounts to invest in and make a substantial profit. For this purpose, we have highlighted some pros as well as cons for each of them.
Why Reseller Account
Reseller hosting Accounts are web hosting businesses in which an account holder can buy space on the hard drive and bandwidth from the web hosting provider. Now they can host their individual sites and even resell the resources to various people.
This web hosting business allows the account owner to act as a middleman, in which they can buy hosting resources. These are available at wholesale rates. Once they do so, they can then resell these resources to their target customers at a substantial profit.
With this web hosting, you do not get as much control in comparison to dedicated servers. However, with dedicated servers, there is plenty of work. Also, good expertise is required with regard to server administration.
Managing and handling dedicated servers is not an easy task. It often takes up a lot of your time. This can be extremely challenging for people that lack experience with regard to server administration.
Therefore, many people prefer reseller hosting accounts, especially those who are new to the business of reselling. This is because they offer a team that is professional and expertise in server management. They are equipped to manage and handle every and all task for you.
If you are working with a limited budget, then reseller hosting accounts are affordable in comparison to dedicated servers. This can be a significant benefit for people looking at beginning a business. Reseller hosting accounts also offer the option of upgrading as and when required. You could choose to upgrade to the dedicated servers the moment your business gets profitable.
| Pros | Cons |
| They are extremely affordable. | You have less control. |
| They come with fewer administration responsibilities. | In certain cases, we have seen less space. |
| You can also upgrade to the dedicated server as and when required. | Less bandwidth is available in a couple of cases. |
Why Dedicated Server
There are various reasons why one should consider a dedicated server to begin with. They are a set up from the reseller hosting accounts that have significant advantages. One of the many is that you have complete control.
To distribute resources as per your discretion, you can also select your control panel as well as download software for your preferences. This web hosting is excellent for people that have plenty of experience with regard to server management.
This is because you get core access to your server. So, with all this power, you will also have to be extremely responsible. Be responsible; we mean you need to always take good care of the server and ensure that the server never crashes. You will have to stay on top of the maintenance of your server.
This means that at all times, you must be vigilant. You must also be able to detect any potential server issues even before they can occur. You will also have to keep downtime at its minimum.
This is because your goal is to keep your customer’s websites online most of the time. Many owners seek help for the same. They outsource this to third parties that have a team of experts to handle every task related to your server administration.
Yes, we agree that your cost will increase because dedicated servers cost more than reseller hosting accounts. But this small investment is definitely worthwhile, especially if you are planning on expanding your web hosting business along with growing your client base also if you have an excellent growth strategy in mind.
Excessive downtime of your server could result in loss of clients, which in turn would actually be very expensive. So, if you require help with your server administration, we suggest seeking assistance from third parties.
| Pros | Cons |
| With dedicated servers, you receive complete control. | Dedicated servers are an expense. |
| They are also very professional. | In order to own a Dedicated Server, you must have expertise with regard to server management. If not, you will have to outsource it to a third party. Or get a team that will help you and avoid downtime. |
At this point, if you’re contemplating between both options, our advice is to consider your budget. Make an estimate of the number of customers that you plan on hosting. If your plans are to host many customers, then dedicated servers are an excellent investment, especially if you look at growing your business in the near future.
But if you’re a newbie to the reselling business. Or maybe you lack the expertise with regard to server administration, then begin with a reseller hosting account. It will be a wiser and an amazing option for your business because it is an excellent way to begin. It also offers you an option to upgrade in the future. You could upgrade to dedicated servers the moment you feel that your business is generating sufficient profit.
Which Option to Choose?
As I mentioned earlier, if you’re a beginner or a newcomer in the hosting industry. You’re looking at adding an extra stream of income to your current business. Or maybe you lack substantial knowledge with regard to IT, then selecting a Reseller hosting account is an excellent choice. It is a very simple solution, especially for all individuals just starting a hosting business.
But, down the line, if you get lucky and your traffic requirements begin to increase. Or maybe you begin to feel that you require more control over the management and software. Then you can always upgrade to dedicated servers, and it will be worth it.
Final Thoughts
You also need to understand that all web hosting businesses are unique and have different requirements. We understand that the right advice, especially while beginning a reselling business, can get extremely difficult. Hence this article is written to help our readers get more clarity. You can also check our article on SFTP vs. FTPS: Secure File Transfer Protocols Explained.
Our familiarity and experience with regard to web hosting give us an edge to offer technical-related advice. This could prove beneficial for your business. Our goal is to remove the confusion from your mighty decisions. Also, to provide information that will help you not only now but also in the near future.
That’s all, for now, guys. We do hope that this article has helped you make a decision about selecting a hosting service to suit your business requirements. Do share with us your thoughts and comments; thanks!