It’s crowded and competitive, but the domain industry is full of opportunities.
If you want to succeed as a domain reseller in 2025, you need to be strategic, resourceful, and ready to hustle.
Most domain resellers can be categorized as either web hosters, web developers, or domain investors. In this article, we’ve shared our insider tips on launching your business or side venture in all three – without burning through your budget or your patience.
Starting a web hosting business: compete smarter, not harder
Web hosting is a tough game. The big players dominate, and new companies struggle to break through. If you’re serious about this, you need a clear plan and a way to stand out.
- Build a solid business model: How much do your services cost? What’s your profit margin? How long will it take to break even? If you don’t have answers to questions like these, rethink your approach.
- Differentiate yourself: Why should someone choose you over a big player? Do you offer better support? More flexibility? Faster speeds? Identify your edge and own it.
- Think about integration with an existing business: If you already offer a service like marketing services, web design, or PC repair, adding hosting could be a natural extension.
- Know your costs before you commit: Renting a server, software licenses, WHMCS, bookkeeping – it adds up fast. Write down every expense before you take the plunge.
- Sales come first: The hardest part isn’t the tech – it’s getting clients. Set up referral programs for your existing customer base, attend industry events like Domain Summit and WordCamp, and connect with potential customers at networking events.
- Start lean, scale smart: Don’t sink money into an expensive dedicated server if you don’t have any customers yet. Start with a reseller hosting plan or a solid VPS, and upgrade only when demand justifies it.
- Don’t underestimate support demands: Clients expect 24/7 reliability and personalized support. If you can’t handle that, consider a different business model.
Web development: the practical approach
If you build websites, offering hosting and domains can boost your revenue and customer loyalty. But there’s a catch: DIY website builders like Wix and Squarespace are grabbing market share fast, so you need to stand out.
- Target the right businesses: Many small businesses turn to DIY platforms. Mid-sized and large companies are often still looking for professional solutions and the ones you should be targeting.
- Go local: Try cold-calling or emailing businesses in your area that don’t have a website or an outdated one. Offer them a complete package: domain, hosting, and design.
- Start with a reseller hosting plan: Keep costs low by using a reseller plan until your client base justifies a bigger investment.
- SEO matters: Clients don’t just want a nice-looking website; they want visibility. SEO knowledge is a game-changer when selling web development services.
- Show, don’t tell: To win clients, demonstrate why your design brings in more traffic and conversions than what they currently have. Creating simple mockups can help potential clients visualize the improvements.
- Recurring revenue is key: You don’t make the bulk of your revenue from building websites – you make it from maintaining them. Never just sell a website and walk away. Include hosting, maintenance fees, and add-ons like SSL certificates to retain control and ensure ongoing income.
- Include niche TLDs in your offer: It’s becoming harder and harder to find good .coms. Niche TLDs are a great alternative to classic domain names, offering a wider range of available names and a surefire way for your customers to stand out. Compared to premium .coms, they’re also much cheaper!
- Reputation is everything: What sets a web development agency apart is its track record. Have you worked with reputable clients who can vouch for your skills? Strong testimonials and referrals will open doors.
Domain investing: long-term gains, not quick flips
Buying and selling domains can be profitable, but it’s not a get-rich-quick scheme. It takes research, patience, and a thick skin.
- Focus on quality names: Short .com domains, brandable names, common keywords, and dictionary words will hold value over time. Random combinations and trendy names usually don’t.
- Dig deep for deals: Auctions, expired domains, and bulk portfolio sales offer opportunities to snag undervalued names.
- Play the long game: The average sale rate for a domain investor is just 1–2% per year. If you own 100 domains, expect one or two sales annually – if they’re good.
- Know the risks: Buying trademarked names can land you in legal trouble. If you get hit with a UDRP complaint, you could lose the domain entirely.
- Use data, not hype: Analyze sales trends on NameBio, track emerging keywords on dotDB, and connect with other professionals on NamePros. Twitter and forums are full of misleading information and fake success stories.
- Stay patient: Many new investors give up too soon. It can take years for the right buyer to come along.
Conclusion
There’s no single path to success as a domain reseller. Whether you choose hosting, web development, or investing, the key is to start smart, scale strategically, and focus on what you’re best at. The market is competitive, but there’s always room for those who put in the effort and think ahead.
Saving on domains is a great way to maximize your profit. With an Openprovider Membership, you get over 1,900 domains at cost price, meaning that you pay the same rates as we do at the registries. No hidden markups, no inflated renewals – ever.
Just look what this CTO had to say: “The Membership already pays off if you own 7-8 domains, but with 70 domains, the savings are huge for me.”
Whether you have 10 domains in your portfolio or 1000, Openprovider will help you save.
Ready to cut your costs and grow your business?
