What is Reseller Hosting?

A successful web host needs several things. It requires the capital to buy all that expensive gear. It needs technical expertise to run it, which again means capital in the form of payroll. Finally, a successful web host needs a good marketing and sales campaign to attract customers.

Look at it from an economist’s viewpoint. The web host expends significant capital to startup the business. It needs a certain number of web site customers to break even. Then, after that point is reached, the revenue from each additional customer is largely profit. Technically oriented people with enough money to buy the gear still need the ability to fill up the disk space in order to be successful.One way to do this that is gaining in popularity these days is called reseller hosting. The reseller buys bulk space from the web host, then divides it into smaller parcels, and resells them to site owners.

If done correctly, it can be a significant benefit to the web host, as well as to the reseller. The web host has a big chunk of its capacity that is now absorbed, thereby covering some, or even all, of that overhead described above. The reseller that may not have the needed capital or technical expertise can still join the fast growing field of web hosting service providers. The web site owner should be able to realize a savings since the reseller, at least theoretically, is able to pass on a part of its reduced bulk buying costs.

If you think you would like to enter into this field, there is a dizzying array of helpful information available to you. A recent query on a major search engine for “reseller web hosting” yielded almost four million hits, and that’s on one search engine!

There are several areas to watch out for though. As is the case in many internet commerce sectors, scams are everywhere. Be careful as you proceed.

Be very careful of the wording of any contract you sign with a web host. Thinking into the future, you may want to invest your profits in your own web host and the wrong contract terms may make this very difficult. Also, remember that all your customers’ websites are physically resident on the web host’s equipment, not yours. Therefore, their service quality is your reputation. Further, if your web host decides it no longer needs you, what becomes of the existing customers? Accordingly, in addition to taking care with contract terms and conditions, be sure to verify the reputation of the host.

A good relationship will benefit both the host and the reseller, but a poor choice in hosts will assure you have headaches. Reseller web hosting is not difficult if the reseller has taken the time to be sure of a good web host partner.