Starting a reseller hosting company is an excellent way to enter the hosting industry with minimal upfront investment. But choosing between cPanel and DirectAdmin can make or break your business. This startup guide covers licensing, setup costs, profitability, and which panel suits beginners vs advanced resellers.
Understanding reseller hosting business model
Reseller hosting allows you to:
- Purchase hosting resources in bulk
- Create multiple hosting accounts
- Resell hosting to your own clients
- Set your own pricing
- Build your own hosting brand
You act as a middleman between the hosting provider and end clients, keeping the profit margin. Whether you choose hong kong hosting, us web hosting, or eu web hosting, the business model remains the same.
Licensing costs comparison
cPanel licensing
VPS License: $20-45/month
Reseller License: $15/month per 100 accounts
Dedicated License: $45-200/month
Annual cost for startup: $240-540+ per year
DirectAdmin licensing
Personal License: $2/month ($24/year)
Lifetime License: $299 one-time
Extended Support: $5/month (optional)
Annual cost for startup: $24-60 per year (or $299 one-time)
Cost impact on startup
For a new reseller hosting 50 accounts:
- cPanel: $15/month = $180/year
- DirectAdmin: $2/month = $24/year
- Savings: $156/year
These savings can be reinvested in marketing, support, or passed to clients as competitive pricing.
Setup costs breakdown
Initial investment required
Reseller hosting account: $10-30/month
Control panel license: $2-45/month
Domain name: $10-15/year
Website/landing page: $0-500 (one-time)
Billing system (WHMCS): $15-20/month
Payment gateway setup: $0-50 (one-time)
Total monthly startup cost: $27-95/month
Total first-year cost: $324-1,140+
Cost comparison: cPanel vs DirectAdmin startup
| Item | cPanel Startup | DirectAdmin Startup |
|---|---|---|
| Reseller Account | $15/month | $12/month |
| Control Panel License | $15/month | $2/month |
| Billing System | $15/month | $15/month |
| Total Monthly | $45/month | $29/month |
Profitability analysis
Revenue potential
Example pricing:
- Starter plan: $5/month
- Business plan: $10/month
- Enterprise plan: $20/month
With 50 clients (average $8/month):
- Monthly revenue: $400
- Monthly costs: $29-45
- Monthly profit: $355-371
- Annual profit: $4,260-4,452
Break-even analysis
cPanel startup:
- Monthly costs: $45
- Need: 9 clients at $5/month to break even
- Break-even: 2-3 months
DirectAdmin startup:
- Monthly costs: $29
- Need: 6 clients at $5/month to break even
- Break-even: 1-2 months
Which panel suits beginners?
cPanel for beginners
Advantages:
- Familiar interface (most clients know cPanel)
- Extensive documentation and tutorials
- Large community support
- WordPress Toolkit for easy WordPress management
- More hosting providers offer cPanel
- Easier to find support staff familiar with cPanel
Disadvantages:
- Higher licensing costs
- More resource-intensive
- Higher startup costs
DirectAdmin for beginners
Advantages:
- Lower licensing costs
- Lower startup costs
- Better resource efficiency
- Faster performance
Disadvantages:
- Learning curve if unfamiliar
- Less familiar to clients
- Smaller community
- Fewer tutorials available
Which panel suits advanced resellers?
cPanel for advanced resellers
Best for:
- Resellers managing 100+ accounts
- WordPress-focused reseller businesses
- Resellers needing extensive integrations
- Premium hosting brands
- Resellers targeting enterprise clients
DirectAdmin for advanced resellers
Best for:
- Cost-conscious resellers
- High-density hosting (many accounts)
- Budget hosting brands
- Resellers prioritizing performance
- Technical resellers comfortable with learning
Business plan template
1. Market research
- Identify target market
- Analyze competitors
- Determine pricing strategy
- Choose data center location (hong kong hosting, us web hosting, eu web hosting)
2. Business setup
- Choose business name and register domain
- Set up business entity (LLC, corporation, etc.)
- Obtain necessary licenses
- Set up business bank account
3. Technical setup
- Purchase reseller hosting account
- Choose control panel (cPanel or DirectAdmin)
- Set up billing system (WHMCS)
- Configure payment gateways
- Set up support system
4. Marketing strategy
- Create professional website
- Set up social media accounts
- Develop content marketing strategy
- Partner with web designers/developers
- Offer launch promotions
5. Operations
- Set up support processes
- Create knowledge base
- Develop onboarding process
- Establish backup procedures
- Monitor server performance
Pricing strategies
Competitive pricing
Research competitor pricing and match or beat it:
- Starter: $3-5/month
- Business: $8-12/month
- Enterprise: $15-25/month
Value-based pricing
Price based on value provided:
- Premium support
- Advanced features
- Better performance
- White-label options
Cost-plus pricing
Calculate costs and add profit margin:
- Determine per-account costs
- Add desired profit margin (50-100%)
- Set pricing accordingly
Getting started with iServerGo
iServerGo offers reseller hosting perfect for startups:
- Hong kong cpanel reseller plans starting at $15/month
- DirectAdmin reseller plans starting at $12/month
- US web hosting and EU web hosting options
- Full WHM/DirectAdmin access
- White-label branding
- 24/7 support
- Free migration assistance
- Competitive pricing
Conclusion
For beginners: cPanel offers familiarity and extensive support, making it easier to get started despite higher costs.
For advanced resellers: DirectAdmin offers better cost efficiency and performance, ideal for scaling businesses.
For most startups: DirectAdmin's lower costs allow faster break-even and more competitive pricing, making it ideal for new reseller businesses.
Ready to start your reseller hosting company? Contact iServerGo to discuss cPanel or DirectAdmin reseller hosting plans tailored to your startup needs.
Stephen, Customer Success Lead is a hosting infrastructure specialist with years of experience managing mission-critical workloads. This article reflects real-world expertise in Reseller Hosting and is regularly updated to ensure accuracy.
Looking for fast, reliable hosting? Explore our cPanel Hosting, DirectAdmin Hosting, and US East hosting plans to match your project's needs.