Become a Domain Reseller: How to Quickly Start Your Own Business

Michael Thomas

Michael Thomas

When you started your business, you needed a website and a domain. I’d wager a guess you spent quite a while brainstorming the domain you wanted to use. Now, consider the process other businesses go through when choosing their domain. One of the many things they consider, aside from the actual registration part of their domain, is with whom they should register said domain. 

Whether your company is a design agency offering hosting to your clients or you’re a full-blown IT consultancy firm offering high-touch services, offering a domain registration service should be right up there with your other core services. Making it easy for your clients to register domains without requiring your intervention. 

This addition of services to your business represents a massive opportunity for you to make profits based on reselling domain registrations. Domain reselling is accessible and only involves a few steps to set up before you can begin allowing your customers to register everything from .art to .xyz. 

For those looking to become a domain reseller, this article will cover the entire process, including how to set up your own business and maximize success. We’ll also provide helpful tips on getting started to ensure that your venture into becoming a domain reseller goes off without any hiccups. So let’s start by learning more about what it means to be a domain reseller.

Let’s go! 

What is a Domain Reseller? 

A domain reseller is an individual or business that has subscribed to a domain reseller program. These programs often come from large domain registration companies (registrars) or web hosting companies and are offered to their customers as an add-on benefit. 

With a domain reseller program, you can access all of the TLDs (top-level domains) your registrar offers and the option to resell the ability to register any of these TLDs to your customers. Typically the company offering the domain reseller account will set a base price for each domain extension (TLD) they offer. From there, you can adjust the price by setting margins that net you profit when one of your customers registers a domain under your reseller account. 

Reselling domains can be highly lucrative, with a substantial gap between the acquisition cost and what is charged for them. Registering domains typically costs a nominal amount annually, so even if each sale yields only slight earnings, it can accumulate to be quite profitable over time.

Discovering a partner that meets your needs is the initial step to becoming an effective domain reseller. A good domain reseller program will offer competitive prices on domains, reliable customer service, and plenty of features such as bulk registration options and automated renewal processes. Select a registrar that provides access to all TLDs to ensure you can provide customers with a wide range of options.

When selling domains, there are several things to keep in mind:

  • pricing strategy (do research into similar sites’ offerings before deciding how much yours should cost);
  • customer service (be sure everyone who contacts you receives prompt attention);
  • marketing techniques (think about how best promote yourself online);
  • value-added services such as web hosting packages or custom email addresses – these extras could help differentiate your business from others out there.

As an integral part of the web hosting industry, domain resellers offer a valuable service to their customers. Becoming a domain reseller can provide many benefits and is worth considering for anyone looking to expand their online presence.

 
Key Takeaway: To maximize success, it is essential to consider pricing strategies and customer service and provide value-added services such as web hosting packages or custom email addresses. Additionally, savvy marketing techniques are vital for boosting sales and reaching potential customers online.

How Does Domain Reselling Work?

Domain reselling involves buying domain names from a domain registrar and then reselling them to customers for a profit. As a domain reseller, you don’t need to create or manage the domain names yourself; instead, you act as a middleman between the registrar and the end customer.

To become a domain reseller, you must typically sign up with a domain registrar offering reseller programs. The registrar will provide you with a reseller account, giving you access to their domain registration system. You can then purchase domain names at a discounted price and sell them to your customers at a markup.

I’ll give you a practical example: If your domain reseller allows you to resell .com registrations at $9.89 each, you can set the price to $15.95 and make $6.06 in the process! 

As a domain reseller, you will manage your customer relationships, handle billing and invoicing, and provide support for any issues with the domain names you sell. Some domain registrars offer tools and resources to help resellers manage these aspects of their business, such as customer management systems and white-label billing solutions.

Overall, domain reselling can be profitable if you have a strong understanding of the domain industry, the ability to market and sell domain names effectively, and a commitment to providing excellent customer service.

What Is the Difference Between a Domain Registrar and a Domain Reseller?

A domain registrar is a company ICANN (Internet Corporation for Assigned Names and Numbers) authorized to sell domain names directly to customers. Domain registrars manage the registration and renewal of domain names, and they also maintain the domain name system (DNS) that maps domain names to IP addresses.

A domain reseller, on the other hand, is a company or individual who buys domain names in bulk from a registrar and then resells them to customers for a profit. Domain resellers essentially act as middlemen between the registrar and the end customer. They often offer additional services such as web hosting or add-ons to make their offerings more attractive to customers.

The main difference between a domain registrar and a domain reseller is that the registrar owns and operates the domain registration system. In contrast, the reseller buys and sells domain names using the registrar’s system. Domain resellers often have access to discounted pricing from the registrar, which allows them to offer domain names to customers at a lower cost than if the customer were to purchase the domain name directly from the registrar.

In some cases, a reseller may operate under their brand, using a white-label solution provided by the registrar. This means the customer may not be aware that they are purchasing the domain name from a reseller rather than the registrar.

What are the Benefits of Becoming a Domain Reseller?

Becoming a domain reseller has numerous advantages. It is a great way to make money online with minimal effort. As a reseller, you possess total authority over the domains sold and can set your rates. This business venture offers virtually boundless opportunities for profit.

Becoming a domain reseller provides the advantage of entering an existing market without needing to expend much in advertising or promotional efforts. Furthermore, many of these sites also offer additional services, such as hosting packages and add-ons, which can help increase your revenues even further.

Becoming a domain reseller necessitates only rudimentary comprehension of web hosting and DNS records (which many already know), making it an easy entry point for those with limited technical know-how or experience. Additionally, domain names are relatively inexpensive compared to other types of digital products, making them much more manageable for beginners to get started with than other e-commerce ventures like selling physical goods or software applications.

The benefits of becoming a domain reseller are immense, from the potential to increase revenue streams and expand your customer base to having more control over your domains. 

Who can become a Domain Reseller? 

Anyone! There isn’t a specific certification or accreditation process that you’re required to undertake. Many reseller hosting companies and domain registrars offer their customers reseller programs with different pricing tiers. Often with companies offering domain reselling services that use a tiered system, the higher your tier, the better base pricing you receive on domain registrations. 

You can move up the tiers a few ways. Most resellers let you move up naturally with the number of domains registered under your account. As I mentioned, you typically get better pricing the higher up on the tiers you are. This can take a while, as you can imagine, especially as you start. This is why reseller providers will often allow you to move up to another tier depending on the number of funds deposited into your reseller account. The funds will be used to pay for domains your customers register, and you will get the profits.

Of course, by being on a higher tier, your profits will increase as your margins become better than those on the lower tiers. 

What to consider when choosing a Domain Reseller partner?

When you’re shopping around for the right domain reseller program to partner with, there’s a lot you should keep in mind. Let’s cover some of the primary things to consider: 

How long has the company been in business? 

You’ve worked hard to build your business up and earn the trust of multiple clients. Don’t risk jeopardizing that by signing up for a domain reseller program from a fly-by-night company. Ensure the company you partner with for your domain reselling program has been in the industry for a long time and offers relevant services, such as web hosting. It would be weird to partner with a company primarily a laundromat offering a domain reseller program as a side gig, right? 

How much does it cost to become a domain reseller?

Signing up for a domain reseller program can be a lucrative service for your business, but you want to be sure you aren’t getting price gouged on signing up. To begin, you’ll want to find a domain reseller program that requires little or no money to sign-up and get started. Yes, you may not get the best pricing at this level. However, it’s an excellent way to do a test run with that company and see if you want to stick with them and invest more for better domain pricing. 

If you have multiple domain reseller providers in mind, compare their TLD pricing and their initial start-up costs, as this will help you decide. 

Is the Domain Reseller program white-labeled? 

For many companies, retaining control of their branding through the various steps where the customer interacts with your business is essential. If your brand is very cohesive and a considerable part of your service, having a white-labeled domain reseller platform is something you’ll want. White-labeled programs don’t reveal to your customer the service they are using is provided by a different company and that you’re just reselling access. 

This white labeling can extend from the web interface to email notifications sent by the system to remind customers of upcoming domain renewals and expiration, which continues the placement of your branding and offers a stellar customer service experience. 

What is the support from the reseller like? 

Before you settle on a reseller, sign up, and become invested in their platform, you should contact their support and engage with them. Ask them questions, even if you already know the answers to them. Doing this allows you to evaluate their support quality and process. Domain name registrations can go wrong while they often live a quiet life by themselves on the internet. And when they do, it requires an experienced hand to correct these problems. You don’t want to work through these issues with a reseller partner who offers crummy support. Do yourself a favor and investigate it before committing!

TrustPilot Reviews

 

 

 

Do they offer apps to help automate registration? 

While most providers of domain reseller programs offer a control panel where you can log in, manage domains, or register new ones, they may not offer the apps you’ll need to automate these functions so you can offer the same level of service to your customer. This includes offering free licensing for automation platforms like WHMCS, which works with most domain reseller platforms and giving your customers access to a front end where they can purchase new domains and manage their existing ones. Not all domain reseller providers offer this, so check before making a final decision! 

If you’re a ChemiCloud customer, we’ve got you covered! We offer a free WHMCS license with our Grow, Expand, or Established reseller hosting plans.

Why choose ChemiCloud Domain Reseller? 

If you want to offer domain registration & management to your customers and find yourself interested in working with a partner with in-depth experience in the industry, we should talk.
There’s a reason so many individuals and businesses choose ChemiCloud. Our support is second to none, and we offer everything you need to get up and running with your white-labeled domain reseller account.

From your domain registration to your reseller web hosting for your clients, ChemiCloud offers all the goodies you’ll need, including a free WHMCS license for automation and API access. 

How Long Does It Take to Get Set up as a Domain Reseller? 

Just a few minutes! If you’re a ChemiCloud customer with a Reseller Hosting plan, you already have a domain reseller account with us!

You should have received the login information when you signed up, but if you need a refresher, contact support!

If you’re not a ChemiCloud customer, consider signing up for one of our reseller hosting plans and receive a free, fully-featured domain reseller account to augment your business and provide additional service to your existing customers! 

free Domain Reseller account

Tips for Successful Domain Reselling

Selling domain names as a reseller requires effective marketing strategies and sales tactics. Here are some tips to help you get started:

  1. Build a website: Your website is your online storefront, where customers will learn about your domain names and purchase them. Create a professional-looking website showcasing your domain name offerings, pricing, and value proposition.
  2. Use SEO: Use search engine optimization (SEO) strategies to help customers find your website. This includes optimizing your website for relevant keywords, building backlinks, and creating high-quality content.
  3. Leverage social media: Use social media platforms like Twitter, LinkedIn, and Facebook to promote your domain names and engage with potential customers. You can share blog posts, offer promotions, and answer customer questions to build trust and establish expertise.
  4. Offer promotions: Offer promotions or special deals to incentivize customers to purchase your domain names. This could include discounts, free services, or other perks.
  5. Attend industry events: Attend industry events and conferences to network with other professionals in the industry and promote your offerings.
  6. Provide excellent customer service: To build trust and establish your reputation in the industry. Respond promptly to customer inquiries and provide helpful, informative answers.
  7. Utilize email marketing: Use email marketing to stay in touch with customers and promote new domain name offerings. Offer incentives for signing up for your email list and send regular newsletters with relevant content.
  8. Create targeted advertising: Use targeted advertising through platforms like Google Ads or Facebook Ads to reach potential customers searching for domain names or related services.

Success at domain reselling requires hard work, but these tips should put you on track toward success. Remember to keep learning about new trends in the web hosting industry, maintain good customer relations, and take advantage of various marketing techniques while looking for opportunities that could bring even more profits down the road.

Domain Reseller FAQs

A hand-picked list with the most frequently asked questions regarding Domain Reseller:

Is becoming a domain reseller worth it?

Totally! Depending on your margins, you can profit quite a bit from domain registrations, particularly on the more expensive gTLDs, if you choose to resell them. You’ll want to set attractive pricing as the domain registration space is competitive.

What is the profit margin for domain resellers?

The profit margin for domain resellers can vary depending on several factors, including the cost of the domain names, the pricing strategy used by the reseller, and the market competition level. In general, domain resellers can expect a profit margin of anywhere from 10% to 50% on the domain names they sell.

The pricing strategy used by the reseller can also affect the profit margin. Some resellers may offer domain names at a lower price to attract more customers and compensate for the lower margin with volume. Others may set a higher price point to position themselves as a premium provider and generate a higher profit margin per domain name.

How do I manage my domain reselling business, including customer support and invoicing?

Managing your domain reselling business requires effective customer support and invoicing systems to ensure that your customers are satisfied and that you are paid for the services you provide.

Here are some tips for managing your domain reselling business:

  1. Use a customer relationship management (CRM) system: Use a CRM system to track customer interactions and ensure that you are providing prompt and effective support. A CRM can help you organize customer data, track customer history, and provide customized support.
  2. Offer multiple support channels: Offer multiple support channels, such as email, phone, and chat, to ensure that customers can reach you in the way that is most convenient for them. Be sure to respond promptly to customer inquiries to maintain their satisfaction.
  3. Automate your invoicing and billing: Use a tool like WHMCS (Web Host Manager Complete Solution) to automate your invoicing and billing. WHMCS is a popular platform domain resellers and web hosting companies use to automate invoicing, manage customer accounts, and track payments.

WHMCS will help you keep accurate records of your billing and invoicing, including tracking payments, issuing refunds, and managing cancellations. This will help you to stay organized and ensure that you are paid for the services you provide.

 Utilizing tools like WHMCS and providing excellent customer service, you can build a successful domain reselling business that meets your customers’ needs and generates consistent revenue.

Conclusion

You’ve learned what a domain reseller is, how profitable being one can be, and several things to consider when evaluating which domain reseller program to choose.

With this information at hand, go forward and research domain reseller programs. Or, if you’ve already made up your mind, sign up and get started!

There’s no time like the present; after all, the next best domain is just a registration away!

⏭️ Please join us in the following tutorial, where we will walk you through how to Resell Domains Like a Pro: Automate your Domain Reselling Business with WHMCS

 

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