Reseller hosting is when one web services provider purchases server space and bandwidth from another provider in order to resell it to their own customers. There are several methods in which this is generally done. In some cases a primary service provider rents out a dedicated server to a customer and then the customer sells access to that space and bandwidth to their own customers. In another type of reselling the customer may resell shared server space that they rent from their provider.
In any case the primary advantage involved with reseller hosting is that the reseller doesn’t necessarily have to have much technical know-how to create their own business in this way. Hosting is a profitable industry and a lucrative business can be formed with all of the technical aspects being handled by someone else. Because the reseller is essentially just a middle man they don’t have to maintain the servers, or worry about downtime issues. Upgrades in both software and hardware are handled by the resellers host company. There is virtually no infrastructure to worry about in this way.
The drawbacks of reselling are mostly found hidden in the cost of advertising. The hosting companies you will be competing with are already large and some of them are very well established. If you want to make a name for yourself you may be shelling out some serious dough.
The other drawback is customer support. You may want to consider hiring support agents of your own or you will be answering a lot of calls. Most companies will provide technical support directly to their reseller customers but will not typically provide support for their customers customers.
So can just anybody be a reseller?
Typically web hosting resellers tend to be web developers and web design firms. They often offer hosting services as a way to add value to the products that they already sell or purchase reseller services to just get cheaper access to web hosting. These companies typically include the repackaged services as part of their own products.
Entrepreneurs tend to also be attracted to reseller programs. It’s a simple way to get started with a new business. A low immediate investment is necessary to get started, afterwards a person can have a new business operating almost overnight.
Some affiliate reseller programs exist in which a reseller is merely an agent of the host company. They advertise services to their own customers and as customers purchase their service directly from the host provider the reseller only makes a commission from the sale. These types of situations are nice for those who would otherwise not want to do the technical support for themselves, or who otherwise lack the technical support knowledge necessary to take care of their customers needs.
Finally, in some instances hosting resellers will purchase significant portions of storage space and bandwidth from a host provider and then break it up to parcel it out to their own customers.
No matter how you choose to use a hosts reseller services the benefits of having access without doing the hard work necessary for maintenance and support is quite obvious. If you are an entrepreneur a more lucrative start up idea is hard to come by.
If becoming a reseller sounds like a good opportunity for you, have a look at ASPnix Reseller Hosting.
