Reseller Hosting Can Be Profitable Enterprise

Reseller hosting is a type of web server hosting. The web hosting account owner has the ability to sell their allotted server resources, as web server hosting plans, to third parties. The person who is the reseller purchases the hosting services at a wholesale rate and then "resells" the bandwidth and hard drive space to his customers for an amount higher than what he paid.

Resellers of web hosting plans are simply entrepreneurs who are acting as middlemen. They offer the hosting services that they have leased from another web host's server rather than purchasing and maintaining their own equipment. Most of the time, the quality of services that are offered by resellers is so good that the consumer is not aware that they are dealing with resellers who do not own their own web servers. Because they can pick and choose from many dedicated hosting services, the resellers are in a position to provide their customers with the best of web server hosting plans.

The reseller hosting business is one that is quite simple and which can also be very profitable for entrepreneurs who understand the margins they are working with and the costs of customer acquisition. An average reseller of web hosting is able to buy 1000 MB of disc space at the rate of $25 a month. That allotted space can then be broken up into smaller packages and resold to a number of customers.

It is typical to be able to sell a web hosting plan that provides people with about 25 MB of space for a price of about $5 per month. The reseller then has the ability to create 40 hosting packages, and the monthly income could be about $200. While this is not a huge amount, it is basically turning a $25 per month investment into $200, and this process can be repeated to support as many customers as the reseller is able to find.

Often, when a new hosting company is first starting out, there isn't enough capital to provide the necessary round-the-clock server maintenance, in addition to trying to market and grow their new web server hosting venture. In this case, a new hosting company can start out as a reseller of hosting services and operate that way indefinitely, or until they have enough customers and revenue to justify the capital expenditures to purchase their own dedicated web servers, and hire the support staff to manage and troubleshoot the equipment.

In most cases, the reseller hosting accounts that are purchased through the major web server hosting companies allows the reseller to customize the web hosting plans that they will resell to their customers. In addition, the resellers can "brand" the resell site and control panels of the hosting account so that they can build their name recognition with their customers.