If you run a WordPress agency, you’ve probably asked yourself this question:
“Should we host our clients’ websites or just refer them to a hosting provider?”
Both paths have benefits and risks. In this post, we’ll break down the pros and cons of hosting vs referring so you can make the best call for your agency’s goals, skillset, and client base.
This means you purchase/manage the hosting, and your clients pay you (either bundled with other services or separately).
Recurring revenue predictable, monthly income
Control you control server environments, updates, and configurations
Fewer tech headaches for clients they don’t have to lift a finger
Sticky relationships hosting makes clients less likely to leave
Support responsibility if a site goes down at 2am, guess who’s on call?
Upkeep & scaling you’ll need systems to handle growth, backups, security, etc.
Legal liability you’re responsible if something breaks or data is lost
Requires tech expertise not ideal for non-technical teams
You offer care plans or retainers
You already have devops/technical skills
You want to build MRR (monthly recurring revenue)
You’re comfortable managing servers or using white-label hosting platforms
In this case, you recommend a host (or give affiliate links), but the client signs up and owns the account directly.
No hosting headaches uptime, support, and billing are the host’s problem
Affiliate revenue some hosts pay commissions (e.g. Kinsta, SiteGround, Cloudways)
No liability if something goes wrong, it's on the host
Simple client ownership clients keep control of their billing and infrastructure
No recurring revenue (unless affiliate-based)
Less control you’re limited by the client’s chosen host
Potentially messy support finger-pointing between agency and host can frustrate clients
Harder to upsell hosting is a natural hook for ongoing services
You're focused on design/dev, not infrastructure
You want to avoid long-term tech support
You serve budget-conscious or DIY-friendly clients
Your team is lean and wants to stay agile
Some agencies offer optional hosting clients can choose to host with you or use their own provider. Others partner with white-label platforms like:
GridPane or SpinupWP for managed server control
Flywheel Growth Suite for built-in client billing & management
Kinsta Agency Plan for hands-off hosting with agency-friendly tools
This approach gives you flexibility and allows you to build recurring revenue without going full sysadmin.
Do we want recurring revenue from hosting?
Are we equipped to manage uptime, support, and security?
Would our clients prefer a fully managed solution?
Do we want to build a productized care plan or stay project-focused?
There’s no one-size-fits-all answer. Hosting clients can increase revenue and retention but it adds complexity and risk. Referring clients is hands-off but leaves money and control on the table.
Start small, test both, and refine your offer based on what works best for your agency and clients.