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HOW TO READ THE CHART

COLUMNS DESCRIPTION

RESELLER SPACE Total amount of storage space that comes with a reseller package
HOSTING SPACE Unit of storage space as packaged by the reseller
SITES Maximum number of sites a reseller can sell (A-B)
HOSTING PRICE Price at which a reseller sells each unit of hosting space.
REVENUE Maximum amount of revenue for selling each unit (B) at hosting price (D).
HOSTING COST Cost of acquiring a reseller package.
DOMAINS COST Cost of registering domains for the maximum number of sites (C)
TOTAL COST Total amount invested
PROFIT Amount of possible profit a reseller can make (E-H)

CASE STUDY

The profitability analysis assumes that this hypothetical reseller would sell the same packages, at the same price, as does PNHOSTS.COM. Of course, a reseller would normally create his/her own packages and prices.

PNHOSTS.COM sells bronze, silver, gold and platinum reseller packages.

Let’s take the bronze reseller package as an example. It comes with 1,000 megabytes of disk space. If a reseller sells this 1,000 MB in 10 MB units, he/she can host 100 sites. At =N=3,000 per 10MB, your revenue will be =N=300,000. Your cost for registering 100 domains at =N=1,400 each will be =N=140,000. You have paid =N=33,725 for this package. Your total cost is therefore =N=173,725.

You would have made a profit of =N=126,275, which is over 72% profit margin. Not bad, and yet it gets better.

PROFITABILITY CHART
DOMAIN REGISTRATION COST – 1,400
RESELLER PACKAGE	RESELLER SPACE	CUSTOMER SPACE	SITES	HOSTING PRICE	REVENUE	HOSTING COST	DOMAIN COST	TOTAL COST	PROFIT	%PROFIT
Bronze Reseller	1,000	10	100	3,000	300,000	33,725	140,000	173,725	126,725	72.69%
Bronze Reseller	1,000	20	50	5,000	250,000	33,725	70,000	103,725	146,275	141.02%
Bronze Reseller	1,000	50	20	7,000	140,000	33,725	28,000	61,725	78,275	126.81%
Bronze Reseller	1,000	100	10	10,500	105,000	33,725	14,000	47,725	57,275	120.01%
Bronze Reseller	1,000	300	3	17,500	58,333	33,725	4,667	38,392	19,942	51.94%
Bronze Reseller	1,000	600	2	28,500	47,500	33,725	2,333	36,058	11,442	31.73%

Silver Reseller	2,000	10	200	3,000	600,000	47,500	280,000	327,500	272,500	83.21%
Silver Reseller	2,000	20	100	5,000	500,000	47,500	140,000	187,500	312,500	166.67%
Silver Reseller	2,000	50	40	7,000	280,000	47,500	56,000	103,500	176,500	170.53%
Silver Reseller	2,000	100	20	10,500	210,000	47,500	28,000	173,725	134,500	178.15%
Silver Reseller	2,000	300	7	17,500	116,667	47,500	9,333	75,500	59,833	105.28%
Silver Reseller	2,000	600	3	28,500	95,000	47,500	4,667	56,833	42,833	82.11%

Gold Reseller	5,000	10	500	3,000
Gold Reseller	5,000	20	250	5,000	1,250,000	71,250	350,000	421,250	828,750	196.74%
Gold Reseller	5,000	50	100	7,000	750,000	71,250	140,000	211,250	488,750	231.36%
Gold Reseller	5,000	100	50	10,500	525,000	71,250	70,000	141,250	383,750	271.68%
Gold Reseller	5,000	300	17	17,500	291,667	71,250	23,333	94,583	197,083	208.37%
Gold Reseller	5,000	600	8	28,500	237,500	71,250	11,667	82,917	154,583	186.43%

Platinum Reseller	10,000	10	1,000	3,000	3,000,000	92,250	1,400,00	1,490,250	1,509,750	101.31%
Platinum Reseller	10,000	20	500	5,000	2,500,000	92,250	700,000	790,250	1,709,750	216.36%
Platinum Reseller	10,000	50	200	7,000	1,400,000	92,250	280,000	370,250	1,029,750	278.12%
Platinum Reseller	10,000	100	100	10,500	1,050,000	92,250	140,000	230,250	819,750	356.03%
Platinum Reseller	10,000	300	33	17,500	583,333	92,250	46,667	136,917	446,417	326.05%
Platinum Reseller	10,000	600	17	28,500	475,000	92,250	23,333	113,583	361,417	318.20%