In December 2023, HostGator withdrew from offering Reseller hosting services, replacing them with a VPS server offer. Unfortunately, the company did not take a stance on this matter nor did it leave any information on its website for those purchasing hosting in November that their offer would soon expire and the service would be valid as long as someone would pay for it. This is a weak communication move, but we will not focus on it today. We have checked the new offer and will tell you about it.

As we learned from HostGator’s website and in direct conversations with their staff, the change may have its roots fully linked to Network Solution. It was at the beginning of December 2023 that the client portal changed, along with the range of products offered by this web host. One might get the impression that this is a sort of muzzle limiting the products offered by HostGator, but the truth remains untold.

Old offer for Reseller hosting - it could be purchased until the end of November 2023.
Old offer for Reseller hosting – it could be purchased until the end of November 2023.

HostGator’s Previous Reseller Hosting

Previously, HostGator offered three Reseller hosting packages: Aluminum, Copper, Silver. All services included an unlimited cPanel & WHM license, CRM software WHMCS, premium support, server monitoring, and most importantly – free migrations.

That’s where the list of commonalities ends, as the main differences were in disk space, transfer limits, and of course, price:

  • The Aluminum package provided 60GB of space for websites and email, 600GB of monthly data transfer at a price of $34.95 per month.
  • The Copper package offered 90GB of disk space, 900GB of transfer at a price of $48.95 per month.
  • The highest-tier Silver package, priced at $69.95, provided as much as 140GB of disk space and 1400GB of transfer.

Looking quite sweet compared to the competitive offer at the same time from ResellerClub.com, which offered similar disk spaces at similar prices but with limitations on cPanel accounts up to 25 users.

At the same time, this was what the competition's offer looked like - ResellerClub.com
At the same time, this was what the competition’s offer looked like – ResellerClub.com

HostGator’s VPS Reseller offer: progress or problem?

Delving deeper into the industry, other companies still offer Reseller services or hosting within the White Label model. This raises the question: does the product withdrawal from the offer indicate its lack of profitability and the necessity to operate at the lowest rates on the edge of viability? On the other hand, it might be a step forward, withdrawing from the problematic customer service, who should take care of their business themselves and focusing on the development of other services that are still in the offer.

However, looking at the new offer, currently, HostGator employees straightforwardly state – we do not have a Reseller hosting offer, and the title of the subpage about Reseller services is a mistake. What currently hides under the old name is just ordinary VPS servers with the possibility of installing the cPanel panel. The new offer also consists of 3 servers: Snappy 2000, 4000, and 8000.

New offer of "Reseller" VPS services
New offer of “Reseller” VPS services

Price-wise, it’s… expensive. Even very much so. We consider the prices for monthly and annual settlements without promotions:

  • Snappy 2000 – price per month $79.99, annual price $887.88
  • Snappy 4000 – price per month $119.95, annual price $1319.88
  • Snappy 8000 – price per month $149.99, annual price $1643.88

Additionally, if you want to purchase an additional hosting panel cPanel, you must account for an additional monthly cost of $12.00. The CRM WHMCS panel is no longer offered as standard, for the basic version, you have to pay an extra $5.00.

At least DDoS protection is free in the standard.

So let’s take a look at the summary

The prices are really much higher than before. We compile the offer on a monthly basis without promotion - that is, the amount you will pay after the promotion ends.
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The prices are really much higher than before. We compile the offer on a monthly basis without promotion – that is, the amount you will pay after the promotion ends.

The difference in price is really noticeable. I understand that in the case of VPS, the service owner has much greater freedom, but in this segment, you can find much better offers with much better parameters, and by entering into a good partnership, choose services with much greater reliability in cloud VPS.

But let’s compare in more detail the middle segment, namely Copper vs Snappy 4000 (God, it sounds like a vacuum cleaner name in 80’s). What do we get in it?

Comparison of the Reseller offer with VPS from the same level.
Comparison of the Reseller offer with VPS from the same level.

To sum up the move to discontinue Reseller hosting seems influenced by HostGator’s integration with Network Solution, changing their client portal and product range. While other companies continue to offer Reseller or White Label hosting services, HostGator’s strategy shift raises questions about profitability and operational sustainability. The new VPS offerings, named Snappy 2000, 4000, and 8000, come at a higher cost, with monthly and annual rates significantly exceeding those of the previous Reseller packages. Additional charges for cPanel and the absence of CRM WHMCS in the standard package further increase the cost, although DDoS protection remains free.

This transition to VPS hosting, while offering greater freedom to service owners, is met with mixed feelings. The price difference is stark, and better offers with superior parameters are available in the VPS segment, suggesting that customers seeking reliability might turn to cloud VPS solutions. A detailed comparison of the mid-range offerings, Copper vs Snappy 4000, showcases the changes in what customers receive, reflecting on the broader implications of HostGator’s strategic realignment in the hosting service market.