Real World Example

Web Hosting Reseller Explained

For this particular example we have decided to use a web hosting company based in Sydney Australia called Digital Pacific. All their servers are hosted in Australia and they have local phone and email support available. Their current reseller plans are:

Plan Reseller Starter Reseller LITE Reseller Basic Reseller Advanced
Price $45 per month $60 per month $75 per month $100 per month
Disk Storage 10GB 15GB 20GB 50Gb
Bandwidth 50Gb 70Gb 100Gb 100Gb
Domains 20 30 40 100


Looking at the reseller starter plan to begin you can have a maximum of 20 domains hosted for $45 per month. If you were to break up this into the entire 20 accounts each would have:
- 500mb disk storage(1/20th of 10GB)
- 2.5GB of bandwith(1/20th of 50GB)

In order to cover your costs each month with 20 people on you reseller account you will need to charge each client $2.25 per month. If you were to charge $10 per account per month which is about an average price for competitive web hosting package you would make:

20 clients x $10each = $200 per month less the $45 monthly fee to the web host.
Total Profit: $155 monthly.

Don't forget this is the basic 20 domain package, obviously the higher your plan the more money you can make. You can also split up hosting packages to offer plans. Larger plans that offer more storage space and bandwidth will easily attract higher monthly charges.


Looking at the reseller advanced plan Digital Pacific are offering we will repeat the same scenario. The reseller advanced plan can have a maximum of 100 domains hosted for $100 per month. If you were to break up this into the entire 100 accounts each would have:
- 500mb disk storage(1/100th of 50GB)
- 1GB of bandwith(1/100th of 100GB)

In order to cover your costs each month with 100 people on you reseller account you will need to charge each client $1.00 per month. So once again, if you were to charge $10 per account per month which is about the average price for web hosting you would make:

100 clients x $10 each = $1000 per month less the $100 monthly fee to the web host. Total Profit: $900 monthly.