Reseller Hosting vs VPS Hosting – Which Is Right For Your Web Agency?

Are you wondering which type of web hosting is right for your web agency?

If so, you are not alone. Many businesses don’t have the expertise to choose between Reseller Hosting and Virtual Private Server Hosting (VPS).

Which type of hosting is right for your web agency? It depends on your needs and budget. Let us help you choose the best option for your business.

What is Reseller Hosting?

Here are the examples of Reseller Hosting plans offered by ScalaHosting
Here are examples of reseller hosting plans offered by ScalaHosting. It comes with pre-designed features provided by the hosting company.

Reseller hosting, as the name suggests, is a type of web hosting service that allows businesses to rent web host resources from major host providers and resell them to third-party clients. You can remains the function of a web host provider without the hassle of owning the hardware or software required to host websites.

In certain instances, reseller hosts could offer premium services like automated backups, updates, and free SSL certificates for your clients. They could even offer domain registration services or provide specialized customer service. Your clients will receive the same service purchased directly from the web host provider.

What is VPS Hosting?

Here are the examples of Managed VPS plans offered by ScalaHosting
Here are examples of Managed VPS plans offered by ScalaHosting. You will get fixed resources that can be utilized according to your preferences.

VPS stands for Virtual Private Server. VPS hosting is shared as an apartment block. Each account rents space in the building and is able to utilize the resources provided by the building.

Although a lot of accounts are placed together as the VPS host, you won't share the resources in a first-come-first-serve format. Instead, you'll be given particular resources assigned to you and you'll be able to make use of them in any way you like.

If you are familiar with shared and dedicated server hosting, VPS hosting can be categorized as the gap between the two. Shared hosting can be extremely affordable, while dedicated servers are expensive. The VPS is an alternative that has the advantages of dedicated hosting but without the expensive cost.

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Reseller Hosting vs. VPS Hosting

Understanding the core differences between reseller and VPS hosting is essential to learning how they differ when it comes to running your web agency.

Account Management

cPanel isn't the only management dashboard, but it's among the top and most well-known. Whatever control panel your web host provides, it must be easy to use and provides control over the hosting packages you sell. The panel should also provide metrics and measurements to allow you to keep service levels in check and address problems before they occur.

If you sign up for reseller hosting, you'll usually have access to an administrator console such as cPanel or another admin software, which is pre-installed. Each month will have an assigned amount of disk area and bandwidth allowance. The control panel will include the tools needed for you to set up new accounts, allocate email addresses, disk space and domain names, and other features typical for web hosting.

Whereas, managing accounts from a VPS server is a lot more difficult. As VPS owners get a blank server, it requires more technical knowledge in setting up the server environment. That includes installing a server control panel, installing OS, setting up emails, etc.

Server Control and Customization

The reseller hosting you employ usually provides a more controlled environment. You have limited server access and the hosting company holds absolute rights to the server and determines just how much access a reseller has.

If you've previously handled shared hosting or similar, managing reseller hosting it's just a move-up with a bit of extra management. If you've utilized cPanel to create your website, the procedure is similar. But this time, you're establishing multiple hosting accounts using your master account.

Compared with reseller hosting, most VPS hosting plans offer you higher levels of flexibility in terms of server control and customization. You are required to set up everything on your own. If you require a unique operating system or customized application, then VPS could be the right fit.

You also get root access to the server, so you essentially begin with a blank slate and can customize your server to your exact website specifications.

Server Scalability

Some VPS hosting provider allows you to customize server resources according to your needs – from CPU cores, RAM, and SSD storage to bandwidth and data center location.

It depends on the reseller hosting provider you choose, the majority of reseller hosting accounts are upgradeable, therefore you can begin with a small amount and grow as your client list expands. Because hosting is a virtual service it is easy to scale and typically without any additional administration cost. These advantages offer more competitive pricing when compared to other options, like dedicated servers.

VPS hosting, on the other hand, is also scalable. If your server resources hit the limit or the server usage is trending upward, you can trust VPS hosting to be able to grow with you. Compare this to other forms of hosting, like reseller hosting, where once you reach the limits of your plan, you’ll have to upgrade to another hosting plan entirely.

Client Management

If you provide web-based services to clients using reseller hosting, there's no need to wait for clients to provide logins or wait while they change their passwords. You'll have instant, unrestricted access to the accounts of your clients. This allows you to respond rapidly to problems or offer quicker than normal customer service. This can be rewarded in loyalty and possibly referrals.

For VPS hosting, although it provides the same level of convenience, there's a need for a little more technical knowledge in nature. If your client's website runs into an issue or goes offline for a mysterious reason, you are responsible to help your client out.

Ability to White-Label

Reseller hosting offers you the ability and convenience to white-label your service. Based on your typical reseller profile, you may create an ad-hoc hosting plan, WordPress hosting, SSD hosting, or whatever package you feel best suits your client's requirements

You can easily apply your branding alongside web hosting services and market it as though it were your product. You can then charge what you think the market will bear and make a profit.

Although VPS hosting offers something similar fundamentally, it is more difficult to implement. As mentioned, a VPS server is essentially a blank server, you have to do everything yourself.

Server Performance

The overall server performance very much depends on the original web hosting company you choose. Overall, both VPS and reseller hosting have access to high levels of server resources such as storage, CPU power, and bandwidth. This helps improve the performance and reliability of websites as a whole.

If you’re migrating from a lower-tier plan, for example, a shared hosting plan, then you’ll be blown away by the number of server resources you have. The high levels of bandwidth can also support high volumes of traffic without a hitch.

Change of Provider

Changing a web hosting provider can be tough if you are using reseller hosting. You have to migrate all your client's data from the existing provider to the new one. It's suggested that you use a VPS server. A VPS server can allow you to switch providers easily, however, some will impose an additional cost.

Plans and Pricing

Compared with reseller hosting, VPS hosting is more costly upfront. Managed VPS hosting can cost more than non-managed VPS hosting. Although the VPS hosting cost is higher, you will get greater value for every dollar in comparison to the reseller hosting.

For example, Scala's Managed VPS plan starts at $29.95/mo while the reseller hosting plan starts at $14.95/mo. The Managed VPS plan comes with 2 CPU Cores, 4 GB Ram, and 50 GB NVMe SSD storage. Whereas, the reseller plan offers only shared CPU and Ram and 25 GB SSD storage.

How to Choose the Right Type of Hosting For My Web Agency?

To choose the best type of hosting for your web agency, you need to consider a number of factors, including management, scalability, and cost.

Reseller hosting and VPS hosting are two popular types of web hosting.

Reseller Hosting – How Does It Work?

When you host with reseller hosting you'll be able to purchase an annual wholesale subscription from a hosting provider. The plan will include specific allowances for storage space and bandwidth and the number of websites it can support.

The provider you work with should provide the hosting infrastructure you require. It's your job to tailor and offer packages to your customers. You'll be responsible for customer service, pricing and billing, and after-sale support. This means that it should be something that you are able to handle and will meet the needs of your specific customers.

In addition, your web agency can earn money by offering controlled hosting and managing and taking care of additional tasks behind-the-scenes. Your clients will experience superior customer service and you will be able to maintain their business for the foreseeable future.

Who Should Use Reseller Hosting?

Reseller hosting is an excellent option for people who want to start their own business but without much technical knowledge. This type of hosting allows the reseller to set up its brand and pricing easily while the parent company manages all the back-end operations.

Some of the best reseller hosting providers to consider are GreenGeeks, A2 Hosting and ScalaHosting.

VPS Hosting – How Does It Work?

With VPS hosting, the virtual server emulates the conventional physical server. Utilizing virtualization technology, this physical server can be divided into several virtual servers by means of the partition.

Each partition acts as a server virtual that lets each user install their operating system, software, and more. Similar to an actual dedicated server. This kind of partition is the same as the partitioning of your personal computer in order to use multiple operating systems such as Windows and Mac. Each operating system operates in the form of a container, completely isolated from the other OS.

Although the VPS server can be considered virtual, the server works similarly to physically-based servers. Therefore, you don't need concerns about problems that could arise with other websites impacting your website.

Who Should Use VPS Hosting?

VPSs are perfect for web agencies that need more control over their website and data. You can choose a VPS with or without a domain name and manage your website from any computer using the provided tools.

Hosting your web agency's sites on a VPS provides access to a certain quantity of server resources which you won't have to share with other users.

Some of the best VPS hosting providers to consider are InMotion Hosting, LiquidWeb, and Interserver.

So, Which is Suitable for Your Web Agency?

In short, if you're looking for a fast, efficient way to host clients' websites, reseller hosting is the way to go. If you want more server control and to maximize your server resources, VPS hosting is the way to go. Whichever you choose, make sure you choose the right hosting for your needs.

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Article by Nick Patrocky