Web hosting is a popular affiliate marketing option with large upfront payments for referrals. The problem is that once you receive that first payout, on most of the programs, that is where your earning potential ends. You send them a customer, they say thank you by paying you an affiliate commission and that is the last you hear of them.
Compare that to having your own hosting reseller business
. In this case you get paid each time the customer renews their web hosting or buys a new domain - for life. The majority of people who buy a website will want to keep that website running for years, if not forever. Unless there is a problem with the hosting service, they are unlikely to change to a new hosting provider. Most people would have no idea how to move their site over or would have to pay someone to do it for them, so it is easier to stay where they are.
The right option for you will depend on how you run your business and the type of customers you will attract. If you promote products with high commissions like dedicated servers, it makes sense to be a reseller. If you only promote domains and web hosting then you can take advantage of the marketing set up and run by companies like Hostgator
Hostgator claims that you can earn over $2000 per month by referring new customer to them. If you send 21 or more new customers to them each month they pay you $125 per signup. Even if you only refer between 1-5 new customers per month you get paid $50 per referral.
has the potential for greater residual profit each month. You can set your own prices and recruit affiliates to sell the web hosting for you.
So which one will you choose?
Higher initial payout
Well known brand