Key benefits from Reseller hosting than going with a VPS

[Chris.G]

Just wanted to know how reseller hosting is better than clubbing those client and get a VPS and run hosting company. 

Which is better ? Many says Reseller Hosting will be better and safer in terms of money

[Sreepriya]

Hi

The main issue for a startup hosting company will be Initial COST or Capital. One can easily start a hosting company with a Re seller hosting and with the help of a private nameservers and choosing the correct reseller , you can have a white labelled support as well from the reseller with no extra cost.

But when you plan to go with a VPS, your cost will go a lot higher than expected.

Say , a reseller hosting costs you $20 and if you wish to provide similar features you will be needing to spend many times than that amount

1. Need to get a VPS of decent Memory and Disk and the minimum you need 1 G memory for a cpanel installation which will be having min $10
2. If you are not a Technical person and dont know how to configure a server properly, then you need to hire a admin and get it done by him which can cost you around $40 for minimum which is one time investment mostly.
3. Cpanel license itself can be the most costlier one among these as you need to pay $15 for min for vps cpanel license.
4. If you are a startup with less than 5 clients, you will have to run your company in loss for many months and since the market is so much saturated, you might need to find extra cash for marketing and advertisements and with just a cpanel license, you can beat the reseller hosting / other hosting providers out in the market. You need to create some thing special or you need to have some thing special in your hosting and that really matters now a days to attract the clients towards you.

[Techyllinux]

I go with the above suggestion as If you are a startup, you will always look for cost cutting and vps hosting is whole lot costlier than re-seller hosting. If you host your own accounts and you have technical knowledge to handle a server and you need customizations server wide, then you should definitely go with VPS