In the digitized world, web hosting plays an integral role as it ensures that websites are accessible to users online. With most businesses trying to establish or boost their online presence, websites have become essential for businesses of all sizes. Web hosting companies offer a range of hosting services to cater to the needs of different kinds of websites. However, with the demand for quality hosting services constantly increasing, Reseller Hosting has evolved as a lucrative business option too.
As a Web Hosting Reseller, you purchase resources from a parent hosting company, create hosting packages, and sell them to your clients. The Reseller Hosting plans provided by hosting companies allow you to be a web host for your clients and make profits. However, many people wonder about the amount of money they can make as a Hosting Reseller.
Today, we are going to talk about the range of money you can expect to make if you establish the best Linux Reseller Hosting business.
Let’s start with a target of $1000
To calculate the approximate profits that you can generate, let’s set a profit margin that most Hosting Resellers work with. While you can choose the profit margin yourself, usually, resellers opt for a 15-20% margin. Therefore, to generate a profit of $1000, you will need to have sales worth $5000 or more. If you choose a higher profit margin, then your hosting packages might be too costly for your clients. On the other hand, if you reduce the margins, then business sustainability might be an issue.
Here is an example:
Let’s say that you work 22 days in the first month and manage to get one client per day (on average). Also, for the sake of calculation simplicity, let’s assume the average order size is just $100. So, by the end of the first month, you will generate sales worth $2200, of which your profit would be $440 (considering a 20% profit margin). While this might seem like a small amount, it’s just the first month. If you manage to get one client per day on an average in the second month too, then you will receive $440 + at least $120-220 from recurring billing. As the months go by, your income will get compounded. By the end of the sixth month, you should easily be able to make $1000 per month (current month’s billing and recurring billings put together).
The best Reseller Web Hosting providers offer customer support to the Hosting Reseller’s clients too. Hence, all they need to do is market their services and get new clients every month. Also, Linux Hosting Reseller plans usually come with WHMCS to help resellers manage billing processes with ease.
As you can see, a strategic approach can help you generate good profits over the long term. The key lies in buying a reseller plan from a reputed parent host, creating a strategic plan to market your services, and staying persistent. With the right approach, you can turn your Reseller Hosting business into a profitable one.
Check out the following video to understand if Reseller Hosting a profitable venture for you: