Web hosting companies turn to reselling to solve marketing problems

• 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.