How can hosting providers afford to pay this to affiliates?

by cup243
11 replies
Ok, so I've been considering promoting web hosting services as an affiliate, and I've seen pay outs are pretty big.

They usually pay you between $50 to even $125 for every single sale. No matter if it's just a $5 per month service...

So my question is: how can these hosting providers afford to pay so much to affiliates? what am I missing?

I can't see how their lifetime customer value is higher than what they would be paying me.

Thanks!
#affiliates #afford #hosting #pay #providers
  • Profile picture of the author Khondoker
    Well, their income is recurring!
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  • Profile picture of the author joseph7384
    Because they base it on the lifetime value of each customer.
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    • Profile picture of the author Devilfish168

      If you can provide hosting service you can earn big.

      I remember reading somewhere this news from my local country.

      A teen doing providing hosting service for company

      slowly become a big business

      I wonder how he do it....don't tell me his room have servers??

      etc
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      • Profile picture of the author AffiliateWaves
        Originally Posted by Devilfish168 View Post




        I wonder how he do it....don't tell me his room have servers??

        etc

        Probably he was just a hosting reseller ,no need to own your own servers.They offer you while label business with a lot of potential to earn.

        There is much money in this business if done properly.
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      • Originally Posted by Devilfish168 View Post



        I wonder how he do it....don't tell me his room have servers??

        etc
        You do it with a reseller account. This allows you to set up, provide support and do your own billing while having a a reputable hosting company manage the servers for you and provide you support for stuff you don't know how to fix.

        Or you can get servers from the same hosting company and manage your own servers while having the servers located in the state-of-the-art server farm being monitored 24/7 and the company can deal with the hardware for you.
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    • Profile picture of the author fantrom
      Originally Posted by joseph7384 View Post

      Because they base it on the lifetime value of each customer.
      Let's say they pay you $50

      They receive:

      - $5 x12 = $60/year
      - Additional Services (upgrades +)
      - Referrals
      - Cross Promotions

      and more if they know how to market their services right.
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  • Profile picture of the author aby2maria
    1. They have a recurring structure. So they will make profits some day for sure.
    2. They have lot of addons and sub offers that they present to their customers.
    3. Many hosting companies cheat their affiliates by not paying them by showing some tricks

    ***The third one is from my personal experience . I don't want to generalize it anyway
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  • Profile picture of the author NeedBucksNow
    Hosting is probably one of the better ways to make money online and most of them have great payouts. The key to making it profitable is to build a successful blog that gets loyal followers that want to copy your success. It takes some work to get new subscribers but as with everything else online, it is mostly just a matter of traffic and time
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  • Profile picture of the author marax
    I've just renewed a hosting account for $200++
    It's just too much trouble to move the sites to another place.
    This type of behavior is what the hosting companies are betting on.
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  • Profile picture of the author GarlandBergeron
    Because they have their numbers calculated carefully, they count LTV (Life time value) of their customers and this is how they can afford to give away those staggering commissions!
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