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Reseller web hosting service provider purchases a bulk hosting from a hosting provider company and run the hosting business with or without their own brand name. Here reseller is allotted bandwidth and hard drive space to host website on behalf of third parties. Reseller buys the reseller hosting plan and subdivides the plan in small packages and again resells or sells directly to users.
Usually the reseller web hosting provides a very large hosting pack where a considerable bandwidth and disk space are provided with and which is able to host bulk domain names. The web host provider creates its own package to draw the attention of potential customers without maintaining their own server. Then he again sells certain portion of the server space and bandwidth to resellers.
The server is run by the main reselling company and all servers related technical issues from customers are addressed by them only. The web hosts are not claiming that the server is hosted at their location and they rarely have complete access on it. But if they require to run a particular script or module they can request for that.
Now the question arises why the customers are not directly contacting the reseller host, the answer is, the reseller host is selling only large amount of bandwidth and web space which are far beyond the requirement for a single end user.
Reseller host buyer is generally cutting the price by creating small packages, by dividing the server space and bandwidth which is suitable for website owner needs. Web developers, Web design firm, systems integrators are the buyers of reseller web hosting as they are offering webhosting as an additional add-on service. Small web site owners and entrepreneurs find reseller hosting an inexpensive way to start their business.
Reseller hosting are divided into unbranded and branded reseller web hosting.
The unbranded reseller hosts use ambiguous domain name as their primary name for their hosted servers. When a reseller host is unbranded with a logo or a brand name, their idea create impression that they are large entity and they have own control over their own servers. It is part of their marketing strategy.
Resellers are using customized name server and control panel for branding.
Many web hosting companies are coming into web hosting business as resellers and reselling the bandwidth and server space for another company. It is considered as hassle free business with a prospect of earning profit without the head ache of server management.
Reseller hosting is beneficial for the following type of users:
Individuals having mid size forum and who need a large amount of server disk space and bandwidth
Startup web host
Companies are looking to expand their business but are not looking for a dedicated server.
Individual end user, who have bulk domain names and searching for a web host where they can host all their domains.
Without much knowledge of web hosting and technical knowledge resellers can operate their business efficiently. Reseller is only responsible for customer acquisition. They use promotional offers, pay per click and affiliate plan as part of their advertising campaign.
The reseller web hosting business runs on low margin and the hosting pack will start from merely few dollars per month. Web hosting business is considered as one of the biggest in online business because every website requires hosting.
Resellers use control panel to mange and setup customer account through a web based interface.
Followings are the list of well known control panels: