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Never resold VPS myself, however I have some clients on the vps reseller packages I offer, so I asume it is profitable someway.
Rarely a reseller package that can compete with the providers plans. Not saying that it should, but its hard to be honest and tell people where to get the same thing for less.
+1, unless your adding some features that don't exist at the source, such as management with cPanel/WHM included etc.
Personally I started as a VPS reseller. Once I gained enough income I purchased my own nodes and put all new customers there, or offered a discount for me to migrate them over.
Reseller is a good start as said if you don't have funds/knowledge right off the bat.
@concerto49
If you don't mind me asking what does your dedicated server cost you and what sort of profit do you make on it on average?
Pretty sure @Infinity might be able to chime in on this.
You'll likely rent/lease:
Start up a small company on a server or two but understand you can't jump in this offering plans as low as IPXcore, SecureDragon, BuyVM, etc and make money by lease/rent because all of them own their equipment. Come into this with a unique angle or market like with MC hosting, offering shared web hosting to your local market to build up customer base (I personally did this), etc.
Which dedicated server are you after? I have about 5 servers already
and a few configurations.
I don't have an accurate answer. It depends on how much you oversell and the risks you are willing to take. Add on things like cancellations, suspensions etc that cause it to vary. I really don't oversell enough to make huge profits nor do I wish to.
As many of you might have read, my main motive is to use the infrastructure for other purposes. If you look on Cloud Shards' website - we now do JIRA and Confluence hosting. We are also looking at expanding into other offerings. Hence why I will NOT oversell and overload my nodes to a point where it's unusable for my own needs.
A VPS server costs between $200-400/month for an E3 depending on your specs. Mine are usually somewhere in between. Add on SolusVM + WHMCS costs + staff costs + insurance costs to start off with profit is about 0 if you rent. Once you can get a few more servers you can start bargaining for discounts. If you prepay yearly, for example, you'll start making profit. A deal I got was that paying yearly = 20% discount hence your profit.
This is if you are renting. Colo server is $1000-$3000 for a purchase. It's quite useless for a 1U. You'll need at least 1/4 to 1/2 a rack to get anywhere. Those numbers are then a lot more complicated.
Edit: It's not as simple as buying a server + selling it = profits. You'll be sinking endless hours into all sorts of things before you know it. Reselling might give you a good taste to start with if you don't know what you are doing.
An additional point: resellers aren't posted on LEB. So there goes some of your market.
If I would be a provider I wouldn't even touch the LEB market with an old cum-stained stick. 'We' expect 110% for the price of a cup of coffee a month, doesn't seem like easy profit to me.
If I were you I would become a reseller for a LEB company and market for a whole different audience, mark up the prices at least 4 to 6 times. This seems mean and immoral but that's how lucrative business works.