Why Affiliate marketing is better than a Reseller Business
If you are familiar of both the terms, Great! For the benefit of others, let me explain the terms.
Affiliate Marketing: Writing content and promoting products as an affiliate by simply referring the product through a referral link and earning commission is called as affiliate marketing.
Reseller hosting partner: A process of partnering with a web hosting company to sell their web hosting accounts under your own brand (white label), via your own website and setting your own price for the hosting to earn a profit.
Why Affiliate marketing is better:
Personally I have tried out many business models and that includes both the above models. I am still selling web hosting to my customers as a reseller and that fetches me a profit of 10 USD per sale or a maximum of 20 USD on renewal.
On the flip side, if I sell a web-hosting account as an affiliate I earn somewhere between 50 to 100 USD on a single sale, that means the profit margin for Affiliate marketing is 10 times the one of a reseller account.
The only major advantage of doing a reseller hosting business is that reseller hosting revenues are recurring- Each year when your client renews the web hosting, you continue to receive the profit year after year.
Bind your services with affiliate marketing
An interesting strategy that has worked very well for me is binding the existing business with affiliate marketing. For example, if you are providing web designing and development services to your clients you could suggest them a web hosting that you are affiliate for and in return you can earn an additional income as an affiliate commission in addition to your design and development fees.
There are several webmasters providing blog setup and design services for free if the client purchases the affiliate products like web hosting or WordPress themes from their affiliate referral link.
Take Home: If you are planning to become a web host reseller, you could consider becoming an affiliate marketer for the top web hosting companies like Hostgator and Inmotion to earn a great income as affiliate commissions.