Reseller web hosting is a system whereby a company buys bulk hosting at a wholesale price and then subdivides it and sells it at a markup.
The reseller buys the hosting from a large data center that operates the servers. Depending on the type of reseller account, the reseller may offer the technical support and billing, or it may be performed seamlessly by the data center.
Resellers may be very large companies hosting thousands of sites. They are responsible for promoting their hosting plans and supporting and billing their customers.
They in turn, are supported by the original reseller. Some resellers are just small web design companies that offer hosting for their customers at a small profit.
The reseller has fewer customers to deal with than the bulk hosting seller, they can usually offer far better service and technical support.
It is far cheaper to buy a reselling package than it is to invest in a data center and our own servers and personnel. Many large web hosting companies have started off as resellers and eventually bought their own data centers. Reselling can be a profitable enterprise.
we can purchase reseller hosting plan offered by an established Hosting Provider for some dollars per month. It comes with 20GB of disk space and 200GB of total bandwidth. We can resell as many accounts as we want.
If we hosted just 500 accounts we would net more dollars a year before operating costs. When we consider that some of the largest hosts on the web are each hosting millions of sites, 500 does not seem like an awful lot.
Reselling website hosting is a business opportunity that requires very little startup capital and is very scalable. Starting our own hosting company through reselling can be accomplished for less than some dollars/month.