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 we 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 she or he gets from selling an account.
When we refer potential customers to the hosting company. If the customer signs up with the company then we 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.
As a reseller we can decide what kinds of services we can sell. We can provide shared, dedicated or co-location web hosting or merchant accounts, store fronts etc.
If we go with hosting then it might be useful to offer some other hosting related services like domain names, search engines etc.
Of course, if we have problems selling these value added services in the beginning then we can sell them later.
The cost of becoming a reseller and the equipment and people required in order to be successful depends on many factors.
If we just plan to earn commission by referring people to the hosting company by using the Internet, then we do not have to put up a lot of money, all we need is an Internet ready PC and an Internet connection.
All that is needed is a decent computer that can manage the accounts of customers and a good Internet connection.It is advisable to start small if we are very new to the concept of web hosting and reselling. Then we can expand as we go on and start getting more and more customers in which case offering domain registration is also a very good way to make profits.
If we have the money and the experience then we can go as far as buying all the server equipment required, in which case we will also be responsible for all the server maintenance costs.
The best thing about being a reseller is that we do not require a lot of upfront investment.
There is no need to have a lot of technical knowledge. Account management and Internet skills are all that is required. However, it would be really handy