How Much Money Can You Really Make as a Hosting Reseller?

Since the Web Hosting sub-channel comes under the Industry & Trade channel, and our focus is on helping the hosting businesses, and not the individuals, I've never covered such topics, but recently there have been a lot of individuals who've been contacting me, and seeking assistance in entering the hosting arena as a reseller. So, I finally decided to write this article to throw some light on potential revenues and profits that hosting resellers can really generate.

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What Does Your Success Depend Upon?

First off, the amount of money that you make, totally depends upon your marketing tactics, and effectiveness of your PPC campaigns (if you decide to invest any money on Pay-Per-Click marketing), conversion rates, and then the margin at which, you decide to operate.

Can You Make Six-Figure Income?

I know it for a fact that most of you would be interested to know if you can really make six-figure income as a hosting reseller, but before I talk about earning $100,000+ or such fancy figures, let me start with just a thousand bucks as a reference.

Setting a Meager $1,000 Target Initially

So, if your target is to generate monthly profit of $1,000 then it's essential that you generate sales of at least $5,000, assuming a healthy 20% profit margin. Note that it’s totally up to you to decide the profit margin, but I’d highly recommend 15-20% profit margins, because anything over 20% margin will make your hosting packages way too costly, and this may turn off many of your potential customers.

On the other hand, if you decide to work with 5% profit margin, then you’ll have to resell hosting packages worth $20,000 to generate monthly profits of $1,000, and I simply don't think it'd be worth your time and efforts.

Working as a Reseller vs. Hosting Affiliate

Even as an affiliate marketer, you can generate up to $60 per referral very easily, and you just need to generate only 20 good leads to earn $1,000 per month working as a hosting affiliate for top web hosts like JustHost, HostGator, and GoDaddy.

In this case, you’d potentially be generating business worth at least $10,000-$20,000 for those hosts in the longer run, and earning only $1,000 from it. However, the big hosting agencies don’t mind paying high to their affiliates on a per-referral basis, because they know it from their past experiences that most of their customers will end up spending anywhere from $200 - $5,000 per annum easily towards hosting and domain registration/renewal charges, and the average profit margin would easily be much more than $60 referral bonus paid by them.

So, if you want quick money, then working as a hosting affiliate makes more sense, than reselling hosting packages . But, in case of affiliate marketing, it’s tough to predict the conversion rates, and your earnings may vary drastically from month to month.

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