A Reseller Web Hosting plan allows the client to become web hosts themselves. Reselling, or reseller web hosting, is selling web hosting to your customers under your own brand while the web hosting is actually provided by a different larger company. This original larger hosting company is selling you, their client, a large web hosting account, which you then have the authorization to divide into smaller sections to sell to your clients. Resellers could function, for individual domains, under any combination of these listed types of hosting, depending on who they are affiliated with as a provider. Resellers’ accounts may vary tremendously in size and they may even have their own virtual dedicated server or a collocated server.

A reseller is a middleman who sells web space on somebody else’s server. Reselling plans vary greatly and fall into the several categories:

Agent: The reseller acts as an agent for the web hosting company. The reseller advertises the service as if they are with the actual web hosting company. Customers will buy directly from the web hosting company and the reseller agent will receive a commission if the new customers mention the reseller’s name.

Marketer: The reseller acts as a marketer for the web hosting company. The reseller advertises the service as if they are with the actual web hosting company. Customers buy the service from the reseller but all further contact they have is directly with the web hosting company.

Separate Company: The reseller appears to be a web hosting company in their own right, handling sales and support but ‘rebadges’ somebody else’s service. Customer buys web space from the reseller who then buys the web space (at a lower price) from the actual web hosting company. However, customers always contact the reseller directly for any support. A variation of this plan is one where the actual web hosting company in the reseller’s name invoices the customers and the reseller receives a commission from the web host. The reseller usually provides support in order to keep up the pretence that the reseller is a web hosting company in his own right. In either of these scenarios, the reseller purchases the web space after they have made a sale to a new customer.

Separate Company with Inventory: The reseller purchases a large amount of web space and bandwidth from the web hosting company and then carve that into individual chunks of space/bandwidth for sale to their customers. The reseller will appear to be a web hosting company and customers will contact the reseller for support. This scenario, the reseller pre-purchases the web space with the hopes of reselling it.

Let’s consider an example of how reselling works. You purchase a reseller web-hosting package with 2,000 MB disk space and 2,000 MB bandwidth for $15.00 a month. You then break this into 20 separate accounts with 100 MB disk space and 100 MB bandwidth each. You then sell these smaller packages to your customers via your branded website. Eventually you sell each of these packages for $10.00 dollars a month, thus making you $200.00. Subtracting your only cost, the reseller web hosting package of $15.00 a month, your total profit would be $185.00 a month. So, too summarize, reseller web hosting is the act of buying a large web-hosting plan or dedicated server and then breaking it into smaller parts to resell to your clients. This definition is rather simple but you now understand the basic meaning.

If choosing this type of web hosting, compare the various hosting companies that provide this option. A good Reseller Plan will give you ability to host unlimited sites and allow you to create your own packages and prices. Being a reseller should be completely anonymous allowing you to act as an independent hosting company and your customers won’t know that you are reselling hosting unless you tell them. Make sure that the web host provides supports for at least 20 languages and provides multiple scripts that can be installed instantly such as fantastic. Many reseller hosting plans allow you to keep 100% of the money you collect. Make sure you do your research before choosing one company.