So you have decided as a business that you want to get into the reseller space, you have done your research found and great company to work with and now you want to know how much money you are going to actually make being a reseller.
The thing about the hosting industry is that its very saturated, so you need to not only be able to be competitive on price, but you also need to have a great website that converts and superb support.
Below we break down the actual profit you could look at making by being a reseller
- Firstly you want to sell for more then you buy, so lets assume you are buying a package for $5 and selling this for $20 per month, that is $15 profit
- However although those figures look attractive you need to take into account the cost of acquiring the customer, there are many ways to acquire new customers and one of those is via Google Adwords, one average conversion will probably end up costing you around $100-150
- So now you are in minus you need to work out the life time value of that customer and work out how much each customer is worth for your business. Many hosting customers are very loyal and will stay will you for year, on average you should consider the life time value for a customer paying $20 per month around $240+
- So in total per customer over the course of a 2 year period you are looking at an average of $100 profit
- Now you just need to scale up – Imagine having 3000 customers each paying $100, thats $300k in profits
So its really all down to initial investment and dedication then the world is your oyster when it comes to reselling hosting