When someone has a reseller hosting account with a web server hosting provider, the reseller has the right to use the resources that they buy each month and repackage and sell those hosting services to their own clients. These third party clients of the reseller do not deal directly with the hosting provider, only the reseller. The web server hosting is purchased at a wholesale price by the reseller, and is resold to the customer for profit.

Resellers of web hosting plans are simply entrepreneurs who are acting as middlemen. They offer the hosting services that they have leased from another web host’s server rather than purchasing and maintaining their own equipment. Most of the time, the quality of services that are offered by resellers is so good that the consumer is not aware that they are dealing with resellers who do not own their own web servers. Because they can pick and choose from many dedicated hosting services, the resellers are in a position to provide their customers with the best of web server hosting plans.

The reseller hosting business is one that is quite simple and which can also be very profitable for entrepreneurs who understand the margins they are working with and the costs of customer acquisition. An average reseller of web hosting is able to buy 1000 MB of disc space at the rate of $25 a month. That allotted space can then be broken up into smaller packages and resold to a number of customers.

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This entry was posted on Wednesday, June 11th, 2008 at 6:53 pm and is filed under Internet. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.