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Basic & Pro Reseller Help

Tips for setting product prices in the reseller storefront

A great thing about being your own boss is that you can set your own pricing. You'll start with a minimum base price and anything over that is yours to keep in commission. Adjust your pricing to find what works best for your customers, and offer discounts or special promotions to bring customers to you.

How do I calculate my profit?

  • Simply put, your profit is:

    The number of units sold x the amount you charge over the base buy rate – the cost of the program*

  • Here’s an example scenario with some real numbers:

    Let’s say you purchase the Basic Reseller plan for $96.00/year. Now imagine that you charge $90.00/year for a hosting plan that has a basic buy rate of $65.00/year. For each plan you sell, you make $25.00 profit.

    If you sell 10 plans, the amount you earn would be: 10 (the number of plans) x $25.00 (amount over base rate) - $96.00 (reseller plan) = $154.00*

    Remember, this example includes just one product. You’ve got a lot of different products in your reseller plan and your existing customers are likely to renew each year – meaning your profits build and increase as you add new customers.

  • For more detail, use this Reseller profit estimator tool to try out different prices and see how your business can grow from year to year.

Tips and strategies

A customer’s initial purchase is usually just the beginning. Once you have established customers, their monthly or yearly product renewals can also make up a good percent of your commission.

There are different pricing strategies you can use to build and expand your business:

  • Create promotional codes to reward loyal customers... and to grab the attention of new customers.
  • Attract customers with discounted introductory prices for new purchases. Once established, they may be more willing to pay a higher renewal rate in the future.
  • Consider setting multi-year discounts. From a marketing perspective, customers register for longer periods of time if they get extra savings.
  • Opt-in to our current promotions under Marketing > Promotions in the Reseller Control Center. These automatically offer various discounts on products targeted to your customers.
  • Set prices according to your target market. Tech-savvy customers may already know about the competition, in which case it’s wise to keep your pricing competitive. On the other hand, if your customers are beginners, they may need more assistance from you - so a higher retail markup can ensure that you’re paid for your time.
  • Tailor your product pricing to encourage multiple product purchases. For example, you can sell domains at a higher price, and then offer other supporting products (like Website Builder) at a discount.
  • Experiment! It’s easy to change your pricing. If something doesn’t seem to be working, you can always adjust until you find a price that customers respond to.
  • Talk to other resellers in the GoDaddy community to see what works for them. There are also some great blogs in the GoDaddy Garage that can provide insight, ideas and direction.

*As of August 25, 2021, processing and transaction fees no longer apply.