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09 May 2010
Reseller hosting is a form of web hosting which occurs when the owner of the account uses his or her allotted bandwidth and hard drive space (on a server) to host third party web sites. A certain portion of the server’s bandwidth and hard drive space is allotted to the reseller’s account.
First, a reseller purchases or leases the host’s services at wholesale cost, and then they resell them to clients, keeping a profit for themselves. Resellers can either lease a dedicated server and offer it for rent, or resell shared-hosting services. In the case of shared-hosting, a reseller may simply get permission to sell a certain amount of bandwidth and disk space without the need to lease or purchase a server from the hosting company.
Typically, a web hosting reseller will be a web design firm or web developer who offers to host the web sites they design. Reselling web hosting services is also a great way to start a turnkey business. It does not require an extensive knowledge of web development, since a data center operator is responsible for maintaining the hardware, connectivity and network infrastructure and the server’s owner takes care of security upgrades and configurations. Each reseller is responsible for interacting with and attracting their own customer base and it should be noted that successful resellers invest in a significant amount of advertising. Reseller hosting is a low margin business, and requires high volume to be competitive, but since every web site needs hosting, it can be lucrative. Most resellers offer their own service plans and unique pricing structures.
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