What is Reseller Hosting?
This is a type of web hosting where the owner of the account can use their hard drive space and bandwidth to host websites that are owned by third parties. In other words, a reseller buys the services of a host on a wholesale market, then sells portions of what they have purchased to customers for a profit.
This usually involves a reseller purchasing a Reseller Hosting account or renting a Dedicated Server from a company to resell shared hosting services. In Reseller Hosting, the reseller has permission to sell a pre-set amount of disk space along with bandwidth to customers without having to rent a Dedicated Server from a web hosting company. The result is earning a percentage of the money made from each sale, much like a sales commission.
You will need to set up a domain reseller account and focus on advertising your services to attract customers. Interest in reseller hosting has grown over the years with many seeking opportunities to make money in the field. Of course, as with any business, your success may vary as this is a very competitive field.
How Much Can You Make?
What you make will depend on the margin of profit that you may be able to set in your reselling efforts. A percentage that is too high will mean fewer sales. While a percentage that is too low will mean you cannot generate enough sales to make it profitable. Generally speaking, most resellers work with 15% to 20% which seems to strike the right balance.
What you make will now depend on how much you can sell. Consider that reselling hosting packages are similar to affiliate marketing where you earn a percentage of each sale. A $100 package sale means you will earn $15 to $20 from that sale depending on the percentage you have set. At first, this seems rather small, but consider that many sales involve reoccurring billing. This means that you can add up the sales of each month which will compound over time.
So, if you earn $100 in the first month from sales and earn an additional $100 next month, you will be receiving $200 at the end of the second month. As long as customers are subscribed to the web hosting packages, your earnings will continue to grow month after month.
Of course, to earn the money you will have to advertise and find customers willing to purchase web hosting services from you. As with any business, the art is in reaching those who need the services you are offering. This will take time, money, and effort just like any other business. However, the advantage of a reseller is that they are earning money on customers who are paying every month.
Owning a domain reseller account offers you the opportunity to create an income stream and possibly go full time depending on your success. It also helps that there will always be a demand for web hosting services, so being a reseller offers you a path towards financial independence that will last for the foreseeable future.