Web Hosting Reviews & Ratings

October 21, 2010

The Profit Available via Reseller Hosting

Reseller hosting is an excellent method for generating profits and starting your first business. With more people starting a website than ever, they need inexpensive, reliable web hosting to run the business of their dreams, blog about their daily lives, or create non-profit informational sites.

How does it Work?

The reseller hosting industry is fairly simple; you purchase storage space and bandwidth from a large hosting provider. Then you break up that storage space and bandwidth and resell it to website owners for a profit. The reseller business is like buying something in bulk from a warehouse for a discounted price (due to the quantity), breaking it up and reselling each component individually.

The Quality of Reseller Hosting

In many instances, the quality of the reseller hosting is so incredible, many users don’t even know they are leasing space from a reseller. Since resellers have the option of picking and choosing the servers from the large web hosting provider, they can provide customers with the best services available.

The Deals as a Reseller

As a reseller, let’s say you can purchase 1000MB of storage space from a primary provider for approximately $25 per month. You can turn around and break this up into increments of 25MB of space and sell it for $5 per month. If you sell 40 packages, that equates to $200 per month for the total amount of storage. Many primary providers even allow you to oversell the space as long as you don’t pass the 1000MB each month.

The money acquired from these sales is residuals, meaning they are reoccurring each month with zero work until the customer cancels their plan. The most work you are engaged in is buying space from a provider, advertising your company and distributing the space. The web host takes care of all other issues even customer service inquiries. To earn even more money you have the option of recruiting resellers to work for you. You earn money on their monthly sales.

The profit margins in the reseller hosting business are quite high. This is due to little overhead and residual income. Also, the business is simple to start even for those that lack the technical expertise and funds to run a server. Additionally, reseller hosts are often more scalable than the primary providers because they can simply move to a host that provides the necessities for the customer.

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