The form of web hosting which involves the capability to host websites on account of the third party is called Reseller hosting. To elaborate, the account owner has or is given the power to use the hard drive space or bandwidth he posses to host websites for a third party or parties. Then the reseller buys the host’s service. He buys the service in a lot or wholesale and then sells it again thus being called the reseller. He probably makes a profit while selling the service of another to his customers. The reseller has an account. A portion of the services are allocated to his hard drive or bandwidth. It is upon the reseller to decide whether he would hire the services of a dedicated server from a company which hosts or he could sell the shared hosting services again. If the reseller decides to resell his portion of a shared web host he is only given the permission to sell a portion of his disk space. That is he sells only a portion from his account to cater to his own customers. He does not have his own server but resells or relends the services of the web hosting company he uses. The reseller generally has a separate reseller account with the web hosting company
A person who typically engages in such a process Reseller hosting tends to be a web designer, web systems developer or web developer. Not to restrict the sense it might be a firm performing the above functions too. The primary purpose or the function of the firm or person would be to cater these needs of designing or developing and probably gives web hosting as an added service.
Reseller hosting might be a good start to a person or a firm looking forward to expand in the business of web hosting. It is not so expensive for a starting business and gives one the scope to learn about the details of web hosting as a business. Future entrepreneurs may start a company based on this idea and scope of Reseller hosting. Shared web hosting companies or Dedicated web hosting companies have reseller friendly plans. In turn the resellers create, devise and design their own reseller hosting plan. They formulate their own pricing structure and bandwidth or hard drive plans. This cyclic process only enables better, cheaper service to the customers. Resellers also create their brand value. They create their personalized name servers and customize their control panels.
A profound knowledge is not required by the firm or person to be an efficient reseller. The technical aspects are handled by the web hosting company. A reseller requires interfacing with the customers but the technical aspects of security and software update are the responsibility of the web hosting company. To be a profitable reseller a huge customer base is required. Also, extensive advertising is required to get that customer base. The fee for the web hosting services is not that steep so the major profit is dependent on advertising. Reseller webhosting is prevalent and growing for every website needs to host.