Domains are where every customer journey starts, but they’re also where margins are thinnest.
In a market with more than 330,000 hosting providers and relentless price competition, relying on domain sales alone puts pressure on growth and cash flow.
That’s why the most resilient web hosters move from domains and web hosting to email and beyond: they package hosting and domain services with business email, SSLs, and DNS, to lift ARPU, reduce churn, and create a stickier, higher-value relationship with every client.
For tech-savvy web hosting providers who care about automation and operational efficiency, this isn’t about adding random SKUs.
It’s about building a streamlined, white-label bundle that’s easy to sell, auto-provisioned through API, and priced to win.
Why web hosting companies need to diversify revenue streams
- Margins on core domains are shrinking
Hosting services and domain pricing are becoming commoditized in a crowded, fragmented market.
Hosting is getting cheaper and, without complementary services, it’s hard to defend profit per customer or absorb acquisition costs.
- Revenue concentration increases risk
When most income comes from a single line item, a promo from a bigger brand or a registry price change can wipe out monthly profit. Bundling email, SSL, and DNS spreads risk and stabilizes MRR.
- Customers want packaged outcomes
Agencies, SMBs, and web professionals expect “one vendor, one invoice, everything works.”
In fact, offering business email setup alongside your domains can raise customer retention through a more attractive service bundle.
- Monopolization on the hosting market
If you want to stand out, you need to offer a complete solution and stand out because of the quality of your services/support
- Higher ARPU with near-zero extra acquisition cost
Once you own the domain relationship, attaching email, SSL, and DNS is the fastest path to lift ARPU and lifetime value.
For this, white-label promotions further expand margins on those add-ons.
- Operational leverage through automation
API-driven provisioning turns “extra services” into low-effort revenue.
That means fewer tickets, faster delivery, and less manual work for your team, key for hosters under margin and support pressure.
TL;DR
Diversifying from domains to business emails and related add-ons is the most direct, defensible way for web hosters to grow profit per customer while improving retention and brand trust.
With Openprovider’s business email solution and automation set ups, you can make that shift quickly and at scale
Take the most out of your business email setup
Email is the daily touchpoint your customers open, trust, and rely on.
When you connect a business email account to a new domain, you turn a one-off transaction into an ongoing relationship.
That single move positions you as the “one vendor, one invoice” partner who gets everything working from day one.
The core benefit of working with Openprovider: domains at wholesale price
In our Membership model, business email is an add-on that extends your margin beyond commoditized domains and turns renewals into predictable MRR.
In fact, Openprovider offers a model where web hosting companies and domain resellers can purchase their domain assets at the same price of the registry, to resell them more profitably.
Why email beats domains on stickiness and margin
Unlike domains, which are easy to price-shop, email lives at the center of your customer’s daily operations.
Migrated inboxes, aliases, storage tiers, and admin policies create switching costs that reduce churn and stabilize revenue, especially when bundled with SSL, DNS, and other marketplace products.
A natural upsell at the moment of purchase
The domain checkout is the perfect time to attach email.
Position a “start with professional email” bundle as the default, then let customers scale with add-ons (extra mailboxes, storage, archival).
Check out our business email solution to start reselling mailboxes profitably.
Security that wins trust (and deals)
SMBs and agencies now ask about GDPR, NIS2, and vendor security posture.
Relying on a business email provider that can demonstrate a mature security stack, like Openprovider’s ISO 27001 certification, is a strong way to protect your business and your clients.
Operational ease through automation
Email only scales if it’s painless to provision and manage.
With Openprovider’s API and off-the-shelf integrations (including WHMCS, Blesta, Hostbill, Hosfact, ISP BillManager 5, Atomia, Clientexec, Upmind), you can auto-create mailboxes, apply policies, and invoice under your own brand. That keeps support tickets down and margins up.
Packaged for profit
A clean, white-label bundle, like domain + business email + SSL + managed DNS, gives customers a complete outcome while giving you multiple levers for margin and promotion.
Takeaway for web hosting providers
Business email setup is the fastest, lowest-friction path to grow profit per customer.
Lead with it at domain checkout, automate it via API, and anchor it with security and Membership-based, cost pricing to make every new domain a recurring revenue stream.
How Openprovider helps hosting companies scale profits
Openprovider’s Membership model moves your margin from commodity domains to high-value add-ons, while keeping your buy price at registrar cost.
That combination (at-cost domains + member-only rebates and promotions) lets you win more checkouts and earn on the bundle: business email, SSL, premium DNS, and software licenses.
Scale comes from automation
Larger resellers plug our API into their portals and billing, or use ready-made integrations like WHMCS and Blesta, so to manage billing automatically, with fewer tickets and lower OpEx.
With 1,900+ TLDs and a comprehensive marketplace (SSL, Plesk, EasyDMARC, and more), you can add “one more item” at checkout or renewal and steadily lift ARPU, without chasing new customers.
ICANN accreditation, ISO 27001 certification, seasoned transfer automation, and dedicated account management reduce risk in consolidation projects and help you scale confidently.
Quick set-up guide: get started with Openprovider
1) Sign up to the Reseller Control Platform for free (5 minutes).
Pick the plan aligned to your portfolio size. Members buy domains at wholesale price and unlock exclusive promotions, rebates, and discounts on marketplace products.
From here, you’ll be able to manage everything related to your domain portfolio and ancillary products. Connect a domain and point it to the business email service to kickstart your setup.
2) Connect your tools (10–15 minutes).
- Option A: connect billing tools WHMCS or Blesta.
Install the Openprovider domain and SSL modules to start selling immediately from your existing storefront.
- Option B: use the API.
Generate credentials and connect to our REST endpoints for domain search, registration, transfer, and management.
3) Consolidate your domains (transfer robot).
Schedule bulk domain transfers to centralize your portfolio(s) portfolios and normalize renewals. You’ll get status updates and auto-locking when transfers complete.
Use API calls or the WHMCS/Blesta modules to auto-create mailboxes, issue SSL, set DNS, and enable auto-renew. This cuts ticket volume and prevents revenue leakage.
4) Build your “profit bundle.”
Create a default package (domain + business email + SSL + premium DNS) priced for ARPU lift and renewal stickiness. Layer in member-only promos or rebates on SSL/Plesk to protect margin while remaining competitive.
For extra security, offer premium DNS (anycast, DDoS protection) and security add-ons directly from the marketplace to increase attachment rate.
5) Measure, iterate, and scale.
Track attach rate, ARPU, renewal take-rate, and support tickets. Your account manager can share promotions, MDF opportunities, and playbooks to push the next percentage point of margin.
How bundling boosts your profit margins
Bundling turns a low-margin domain sale into a multi-line, recurring relationship. Here’s how it directly improves unit economics for web hosters and resellers:
1) You convert “at-cost” domains into margin on add-ons
With Openprovider Memberships, domains transact at registrar cost, so the profit shifts to attached services like business email, SSL, premium DNS, and licenses.
That lets you win the domain on price while earning on the bundle.
2) Higher ARPU with the same CAC
Once you’ve acquired the customer at the domain stage, every attached mailbox, SSL, or DNS upgrade increases ARPU without requiring new spend. Members also unlock cost-price domains to increase profits.
3) Predictable MRR from “must-have” services
Email, SSL, and DNS renew annually (or monthly), smoothing cash flow versus one-off domain registrations that will get renewed at a different price.
Having full control over your own margin model with domains, emails and ancillary services is exactly what we want to achieve to mitigate an overcrowded market like ours.
4) Rebates and MDF stack on top of sales price
Openprovider runs Member-exclusive promotions, rebates, and MDF programs on marketplace products (e.g., Plesk, SSL, security add-ons). These incentives create room to price competitively while preserving margin.
5) Automation reduces support costs
API-driven provisioning and integrations cut ticket volume and manual work, improving gross margin by lowering OpEx per order. Your team sells bundles without adding headcount.
6) Stickier bundles improve retention and LTV
Migrated mailboxes, DNS settings, and certificate renewals create switching costs. The more services you manage under one invoice, the longer customers stay, lifting lifetime value.
7) Broader catalog = more cross-sell moments
A single platform with 1,900+ TLDs plus marketplace products makes it easy to attach “one more” item at checkout or renewal – small additions that add up at scale.
8) Competitive differentiation without feature bloat
In a crowded market where pure domain pricing is commoditized, a clean, white-label bundle is a clearer value story than a race to the bottom on .com TLDs.
Takeaway for web hosting providers
Bundle the domain with business email, SSL, and managed DNS; sell it under membership pricing; automate delivery via API. You’ll raise ARPU, stabilize renewals, and protect margin, even when domain prices are under pressure.
Ready to turn at-cost domains into predictable margin? Start reselling business email solutions profitably.
