VPS or Reseller Account: Which is Better?

The difference between reseller hosting and VPS is this. With reseller hosting, your main concern is customer support – nothing else. With a VPS, you are responsible for the entire technical backend, including customer support. So when deciding between a VPS or reseller package, unless you’re some kind of a tech god, don’t bother trying. It’s not a sustainable business model unless you have just a few customers.

Here’s a list of the best reseller hosting coupons to get you started.

The Best Reseller Host

In my opinion, the best reseller host is NameHero. Others big hosts have been offloading their reseller accounts for years. But NameHero really takes care of their base. Great customer service, and features. Here’s a full description of what makes NameHero reseller hosting so special.

This is the best NameHero reseller hosting coupon:

Here’s an explanation to help you decide between the two.

VPS Margins: Not Worth it

With a VPS, you handle everything yourself. With a reseller account, you offload the server management to a 3rd party. So which is better? VPS or reseller?

There’s only one reason to even consider a VPS – profit margins. With reseller hosting, you’re paying a fee to the main host. With VPS hosting, you think you can pay for the bare server and pocket the entire hosting fee from your customers. It makes sense. Why not cut out the middle man right?

Here’s the catch, though. To make serious money off VPS hosting, you need more than just a few clients. Dozens. Ideally hundreds or more. What starts out as simple VPS hosting with one or two customers clients will turn into a maintenance nightmare once you start scaling up. You won’t be able to do it yourself. You’ll need to hire staff to handle the customer support and keep an eye on the technical aspect.

And once you do that, you’re losing the margins you worked so hard for in the first place! In short, you would have become a hosting provider in your own right, with all the associated overhead and infrastructure. You could have just as easily saved yourself the headache and let someone else handle the primary hosting for you – more efficiently than you could have done yourself!

For this reason, a reseller account is much better than a VPS to host multiple clients.

VPS Maintenance is a Full Time Job

Most people get into reseller hosting as a side business, tangential to their primary work. For example, you’re a writer and you’d like to expand your services to offer web hosting and complete WordPress maintenance to your clients. This one of the best ways to grow your reseller hosting business.

If so, you simply don’t have the bandwidth the worry about the technical side of a VPS hosting dozens of clients. You just don’t. Let me put it this way – I host this website WP-Tweaks on a pretty good hosting plan, and stuff still manages to go wrong every now and again. When that happens, I panic. I fear for my rankings, my reputation, lost sales, and whatnot. Now take that fear and worry, multiply it by the number of clients you’ll be hosting on your VPS server, and you’ll get an idea of how stressful it can be.

But now in addition to the tech problems, you are inundated with complaints from worried and angry customers, demanding that you give them answers. Figuring out why a site has gone down is no joke. It’s often some obscure configuration detail that takes time and expertise to track down. Now on top of this headache, you need to also fulfill the demands of your primary role as a writer?

Fuhgeddaboudit it!

It’s Almost Too Much for Web Hosts Themselves!

Still not convinced? Here’s a little insight for you. Most web hosts are abandoning reseller hosting! Bluehost is a prime example, but there are others. Those who haven’t, have relegated the business to the very bottom of their hosting services, like an unwanted stepchild. Here’s a screenshot of Bluehost off-loading its reseller business to ResellerClub:

VPS or Reseller Account: Which is Better?
Bluehost Gets Rid of its Reseller Business

Why? Because it’s too much of a headache. Resellers consume lots of resources and generate too many customer support requests for it to be super-profitable. And these are hosts that have been in the industry for decades and have entire customer support departments! If those guys can’t do it, what makes you think you have a chance with a standalone VPS offering?

Bottom Line: VPS or Reseller?

The only scenario where I can envision a VPS being better than reseller hosting is if you’re guaranteed to never have more than 2 or 3 close clients, and if you’re 100% sure you know what you’re doing from a technical standpoint. Even then, I would suggest you just purchase reseller hosting from a good hosting provider like NameHero and be done with it.

But if you have any aspirations whatsoever to burgeon into a serious business and make a living off it, then I would suggest you steer clear of trying to use a VPS for reseller hosting, unless you have plans to become a full-fledged web host by yourself, with support teams, and server admins etc. But if you’re alone and doing this by yourself, don’t bother.

Good luck on your reseller hosting business!

About Bhagwad Park

I've been writing about web hosting and WordPress tutorials since 2008. I also create tutorials on Linux server administration, and have a ton of experience with web hosting products. Contact me via e-mail!

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