In case of reselling the hosting packages, if you manage to attract 20 customers every month (just 1/day), and assuming average order size to be just $100, you’d end up generating only $2,000 first month, out of which, just $200-400 will be your actual earnings (with 10-20% profit margin).
But, don't get disheartened so soon, because this is just the beginning; the magic of compounding makes all the difference here.
If you manage to do the same next month as well, the profit margin in second month would be - $200-400 from second month’s customers plus at least $100-200 from recurring billing.
Likewise, your profit margin in third month would be $200-400 from that third month's sales plus $100-200 from recurring billing of previous month's sales, plus $100-200 from recurring billing of first month's sales.
Now, at this point, even if you stop generating new orders, you'd be making a stable $1000 monthly profit merely by sustaining the existing customers, and you literally don’t have to do anything, because once your customers are subscribed to monthly hosting packages, there’s nothing that you really need to do.
Since you're reselling hosting packages, you won't have to worry about customer service, so long as you're reselling the hosting packages of a reputed web host.
At this point, all that you need to do, in order to sustain your $1000 monthly level is to add a few more customers, as and when any of your old customers go off. However, you must be wary of issues with reselling hosting packages of unreliable firms. So, it's important that you buy web hosting packages only from a reputed firm as a reseller.
And, that's assuming only a meager order size of $100/order, but if you’re reselling VPS and managed hosting packages, then the average order size can easily go up to $200+.
Applying the same math, you’d easily be generating $8000+/month by end of second year, assuming that you manage to generate 20 new orders every month, and retain majority of your old customers with average order size of $200.
And, guess what $8,500/month, means you’d have already started making a hefty six-figure income level at that point!
However, in case of affiliate marketing, if you fail to generate any orders, you end up earning ZERO DOLLARS for that particular month, and that's quite risky, especially if you’re planning to pay your credit card, and utility bills with that money.
So, you can certainly make a living working as a hosting reseller if you chalk out the plan correctly, and work your way through it smartly, and patiently.
Hearty wishes from my side to all those who plan to take up this challenge and make some serious money as a hosting reseller. Just remember, you can make things happen, but it’d require a good deal of time, efforts, persistence, and patience!
I'd also like to add that you can also generate similar income levels working as an SEO reseller too; the only difference would be that you'd be reselling SEO packages of a reliable SEO firm.
You may want to read this article on starting your hosting business as a reseller for getting started. And, should you need any help, do drop in your comments, or e-mail me, and I’ll try to do my best to help you out!
But, don't get disheartened so soon, because this is just the beginning; the magic of compounding makes all the difference here.
If you manage to do the same next month as well, the profit margin in second month would be - $200-400 from second month’s customers plus at least $100-200 from recurring billing.
Likewise, your profit margin in third month would be $200-400 from that third month's sales plus $100-200 from recurring billing of previous month's sales, plus $100-200 from recurring billing of first month's sales.
Earnings at the End of 6th Month
Making money as a hosting reseller becomes easier and easier as time passes by. At the end of sixth month, taking average figures, your profit margins would be $300 + $150 + $150 + $150 + $150 + $150 = $1,050Now, at this point, even if you stop generating new orders, you'd be making a stable $1000 monthly profit merely by sustaining the existing customers, and you literally don’t have to do anything, because once your customers are subscribed to monthly hosting packages, there’s nothing that you really need to do.
Since you're reselling hosting packages, you won't have to worry about customer service, so long as you're reselling the hosting packages of a reputed web host.
At this point, all that you need to do, in order to sustain your $1000 monthly level is to add a few more customers, as and when any of your old customers go off. However, you must be wary of issues with reselling hosting packages of unreliable firms. So, it's important that you buy web hosting packages only from a reputed firm as a reseller.
Making Your Six-Figure Dream Come True
If we continue the math, then at the end of 24 months, you could be easily looking at healthy income level of $4,000+/month, and even if you’re unable to generate consistent orders, you’d surely be earning in the range of $2500-3000/month by then.And, that's assuming only a meager order size of $100/order, but if you’re reselling VPS and managed hosting packages, then the average order size can easily go up to $200+.
Applying the same math, you’d easily be generating $8000+/month by end of second year, assuming that you manage to generate 20 new orders every month, and retain majority of your old customers with average order size of $200.
And, guess what $8,500/month, means you’d have already started making a hefty six-figure income level at that point!
However, in case of affiliate marketing, if you fail to generate any orders, you end up earning ZERO DOLLARS for that particular month, and that's quite risky, especially if you’re planning to pay your credit card, and utility bills with that money.
The Starting Problem!
A word of caution here is that things can be quite rusty and frustrating during the first six months. But, that pretty much applies to any business, and you get to reap the real benefits only after a year or two (and, this was pretty much the case when I had started my SEO company).So, you can certainly make a living working as a hosting reseller if you chalk out the plan correctly, and work your way through it smartly, and patiently.
Biggest Challenges in the Process
The biggest challenge in the process is generating the orders on a consistent basis. You can make use of PPC marketing, organic search engine optimization, social media marketing, and several other ways, but remember – it's always easier said than done!Hearty wishes from my side to all those who plan to take up this challenge and make some serious money as a hosting reseller. Just remember, you can make things happen, but it’d require a good deal of time, efforts, persistence, and patience!
I'd also like to add that you can also generate similar income levels working as an SEO reseller too; the only difference would be that you'd be reselling SEO packages of a reliable SEO firm.
You may want to read this article on starting your hosting business as a reseller for getting started. And, should you need any help, do drop in your comments, or e-mail me, and I’ll try to do my best to help you out!