Summary
Web hosting companies often do not know how to effectively market their products, and so they sell blocks of service to resellers, who in turn solicit individual customers and handle signup, billing, and other issues. Web host resellers often provide additional services to make their packages more attractive, such as co-located servers and domain name services.
Original source:
http://www.webpronews.com/ebusiness/sales/wpn-9-20050210ResellerWebHostingDefined.html
Details
Reseller Defined: The term Reseller according to the dictionary means to sell again i.e. to sell a product or service to the public or to an end user, especially as an authorized dealer, while making sure that you make a profit on the sale.
Reseller hosting is no different either, a reseller buys a Web hosting package from a hosting company and tries to sell it independently.
The profit for the reseller lies in either the discount or in the commission s/he gets from selling an account.
For example: The reseller might purchase a package whose features are valued at $100 for $90.
So, the reseller stands to make a $10 profit on selling the package to customers.
If the customer signs up with the company then you earn a small recurring commission until the customer uses the services.
Most web hosting companies try to outsource their services to resellers as it helps them to extend their business reach without the cost of marketing and sales and also helps them to concentrate on the business side of things.
If you just plan to earn commission by referring people to the hosting company by using the Internet, then you do not have to put up a lot of money, all you need is an Internet ready PC and an Internet connection.
For a small start-up not a lot of money and resources are required.
If you have the money and the experience then you can go as far as buying all the server equipment required, in which case you will also be responsible for all the server maintenance costs.
Providing basic support and leaving the more technical issues to the parent company support staff can be easily achieved.
About the author: Mike Adams is an award-winning journalist and holistic nutritionist with a passion for sharing empowering information to help improve personal and planetary health He has authored more than 1,800 articles and dozens of reports, guides and interviews on natural health topics, and he has published numerous courses on preparedness and survival, including financial preparedness, emergency food supplies, urban survival and tactical self-defense. Adams is a trusted, independent journalist who receives no money or promotional fees whatsoever to write about other companies' products. In 2010, Adams created TV.NaturalNews.com, a natural living video sharing site featuring thousands of user videos on foods, fitness, green living and more. He also launched an online retailer of environmentally-friendly products (BetterLifeGoods.com) and uses a portion of its profits to help fund non-profit endeavors. He's also the founder of a well known HTML email software company whose 'Email Marketing Director' software currently runs the NaturalNews subscription database. Adams volunteers his time to serve as the executive director of the Consumer Wellness Center, a 501(c)3 non-profit organization, and regularly pursues cycling, nature photography, Capoeira and Pilates. Known by his callsign, the 'Health Ranger,' Adams posts his missions statements, health statistics and health photos at www.HealthRanger.org
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Wednesday, February 16, 2005
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