Tue 30 Aug 2011
To put things in simple terms, reseller hosting is best described as the middleman of hosting services. Resellers are exactly that, middlemen. A reseller purchases a hosting package from a web hosting company, such as Hostgator. The reseller is now a client of the web hosting company.
Reseller packages vary in terms of features and components, such as bandwidth, hard disk space, and number of domain names. Each reseller package the client purchases has a specified amount of each component. For example, one package might include 160GB of disk space, 1,200GB of bandwidth, and an unlimited amount of domains.
The client then divides the amount of hard disk space, bandwidth, and domains and creates a multitude of smaller packages, which the client then turns around and sells. Essentially, a reseller is selling space on another web hosting company’s server.
There are several ways a reseller can make money doing this. First, they can start their own web hosting company. The reseller markets the accounts they have created under their own company name, and sets their own fees, terms, and conditions. The client then sells web hosting plans to their own clients.
Secondly, a reseller may be affiliated with a web hosting company. The reseller advertises the goods and services of the web hosting company under the reseller’s own name, while making it clear they are associated with the web hosting company. Each time a new client signs up with the web hosting company, the reseller earns a commission.
Resellers vary on their services. Reseller A may take full control over customer support, while Reseller B may direct any customer support needs to the web hosting company they purchased their reseller package from.
Reseller hosing can be profitable because the reseller buys a package that contains a ton of space at an affordable price. There is a steady market of people who need basic hosting services. The reseller makes their money by providing basic services and the small amount of server space needed to keep a website up and running. Most web hosting companies do not own their own servers; they are actually selling space on a larger web hosting company’s server.
Reseller hosting is great for a number of individuals and web hosting companies. Many people get into reseller hosting because they enjoy the perks of running their own online business without having to purchase, run, and maintain very expensive servers. A start-up web host can easily break into the business by purchasing reseller hosting packages, creating their own accounts, and selling them under their own company name. This type of hosting is also profitable for small web hosting companies that have already established themselves and need a little more space, but are not ready to purchase their own server.
Many individuals have found that reseller hosting suits their needs. Individuals include those that find they need more space than average, those that own several domain names and want to host all their domains with one hosting account, and those that require more bandwidth offered by small web hosts.