Shared and Reseller web hosting have many similarities, many web hosts offer both shared and reseller hosting. The main difference between the two are in the names ‘shared', you are sharing resources, which is the same for ‘reseller' in a way but yo can resell the server resources. You can create your own web hosting accounts and share your allocated server resources with your clients.
The host still remains in control of their server and are responsible for updating server software and maintaining the server. The host will usually also provide support to the reseller, so if there are any issue or faults the reseller will be able to contact the host.
Do I need a Reseller Hosting Account?
Most personal and small business users will have no use for a reseller account, a reseller account is useful to those users who have a number of web sites and want to save money, as a reseller account can be cheaper than purchasing multiple shared hosting account.
With a reseller account you can also sell hosting, so this can be a relatively cheap step into the hosting business. You have the flexibility of controlling your own clients, creating, suspending and terminating accounts. You also have the knowledge that the server is being maintained for you, so you only have to worry about your clients and web site.
If you own a number of web sites, using a reseller account can save you money, and you can create accounts when you need them and share the resources between your web sites easily. You can find reseller hosting accounts with plenty of bandwidth and disk space for around $25 – $50 a month, which can be a big saving if you have a number of web sites needing hosting.
You also don't have to worry about the maintenance of the server, since the web host should have this covered. You should also receive technical support included with your account.
If you have plans to start to own web hosting business, a reseller account can be an easy first step in the hosting industry. It is a relatively low cost solution, meaning you can concentrate primarily on building your business slowly and generate a steady monthly income. One of the biggest mistakes new hosts make is try to accomplish too much in a short period of time. This can lead to unhappy customers and evidently losing clients.
Potential clients may not be totally confident purchasing a hosting account from a reseller, because you in affect are the middle man. If a problem arises with the server or a customers account, they need to contact you and if you are unable to deal with the problem yourself, you would in turn have to contact your host. This can be a long process from initially receiving the first support request to getting the problem resolved. However if you have proper customer support in place this shouldn't be a major problem.
As a reseller like I said above you have limited access to admin functions, and if you have experience with the control panel and server software you may find this annoying. The only thing I can suggest is asking the host if it would be possible for them to enable your account more with admin privileges. The worse thing the host can say is ‘no', so it's worth a try.
In my opinion reseller hosting is worth the money you can pay out, it is a good step in selling web hosting and if done properly enables a small business to generate a profit from reselling shared hosting accounts.
If you have high bandwidth or disk space requirements reseller hosting may not be the best solution, possibly a dedicated server would be better suited if you have the technical knowledge.
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