No, it’s not profitable. So then you have to ask yourself how they are offering it and what are you giving up?
When choosing a provider for a reseller account, you should always think of your clients first and in this industry, most times you do in fact get what you pay for.
So choosing a budget provider to host your clients may save you a few dollars, but won’t do you any favors in the long run with client retention when the service is poor or slow.