Website hosting can be a lucrative business for aspiring entrepreneurs.  However, while you can generate a potentially huge volume of income from this, you need to be well versed with the right technical skills. If you don’t have any technical expertise, an alternative left is to go for reseller hosting instead. Reseller hosting works in similar lines as web hosting. It is relatively cost-effective as you don’t have to incur huge upfront cost. Plus, you are not accountable for setting up the business all by yourself.

Through this post I would like to throw some light on reseller hosting and potential revenues that hosting resellers can generate.

Who are resellers?

Resellers are entrepreneurs acting as intermediaries, providing businesses hosting solutions by leasing time and disk space from another host server instead of maintaining their own.

How can you make your reseller hosting venture successful?

The amount of money that you can generate completely depends on your marketing campaigns. As in your PPC campaigns, conversation rates and gross margin at which you decide to resell are some of key stepping stones to success.

Is it possible to make windfall returns?

Most of you would be curious to know whether you will be able to make windfall returns as a hosting reseller or not. I can understand your apprehensions in this regards. Anyone who is thinking of starting up with a new venture always wants to know about its pros and cons. However, I won’t give you fancy figures. Rather I would say just a thousand bucks as a reference.

Set a minimum target of $1,000 in the beginning

If you set a minimum target to earn monthly revenue of $1,000 then it's essential that you generate sales of at least $5,000 to get near about 20% of profit margin. Significantly, it’s completely up to you to decide on the profit margin, but I would suggest you to try to limit up to 15-20% profit margins. Since anything above this limit will certainly make your hosting packages way too expensive and chances are that this may turn off many of your prospective clients.

On the flipside, if you think of working with 5% profit margin, then you have to target to resell at least hosting packages worth $20,000 to earn monthly profits of $1,000.  Ideally speaking, it won’t be worth your time and efforts.

In a nutshell, if you aspire to make quick money, then reselling hosting is one of the best options to go with.