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Comments
They get the licenses from WHMCS at a wholesale pricing.
Those are probably internal licenses, which means only on their IPs. And you can't really trust those servers for billing anyways, so its pretty much useless.
Ofcourse they are wholesale prices, but what they offer is 7.20 for 100+ license, still giving away with $10 vps means either they are getting it for free or lot cheaper.
@Saahib
Who is giving it away with a $10 VPS?
If you're worried about your host snooping, you can set up a KVM VPS instance within their IPs, if they sell KVM servers. You could also just buy from a legitimate web host where snooping is not an issue.
I think the issue is reliability. You have to make sure the license is never revokoed or invalid and that the vps stays online at all times. You can't hit resource limits, etc.
No difference in that, then say buying your WHMCS license and hosting else where. Still gotta make sure your VPS is up.
Why would your WHMCS be revoked if your paying on time and keeping in the network?
I think it's more control. You're putting your ability to interact with your customers in someone else's hands.
Even if the license is revoked, it's incredibly easy to simply purchase your own temporarily and move elsewhere if need be.