A reseller is simply able to focus on the most important, and sometimes forgotten, aspect of any business – the customer. While it is true that web hosting requires a technical ability, this is not necessarily true of the reseller simply because he is relying on the web hosting provider to ensure the system is operating effectively. With this in mind, there are several factors the reseller must be concerned with.
The reseller must correctly identify the web host provider and place a level of trust in the web hosting provider for providing satisfactory service. From a technical perspective, the reseller is only as good as the web hosting provider simply because if the web hosting provider allows the system to go haywire, then the reseller is helpless and ultimately the customers go elsewhere. There are ways of identifying the trustworthiness of the web hosting provider before making that fatal mistake. With this in mind, there must always be constant contact between the reseller and the web host provider; this is his lifeline.
Please keep in mind that the technical support from the web host provider will probably be at a minimum simply because they allow the reseller to sell their package. The web hosting provider makes the basic assumption that the reseller understands web hosting, so it's a good idea for the reseller have a general understanding of the web hosting industry as a whole. It is the reseller's responsibility to ensure that his accounts function properly.
The reseller's flexibility in offering packages that differ from the web hosting provider's packages will probably be limited. Since the reseller is the interface between the web hosting provider and the customer, it is his responsibility to ensure the web hosting provider offers the best, even in terms of current technology. On the brighter side, there are many benefits to being a reseller. First is MONEY, MONEY, and MONEY! The startup costs are minimal and there is no equipment to maintain. Don't get the idea that this is a cakewalk either, because the reseller‘s function is customer support.
Remember that the reseller is not limited to small or medium-sized websites, there are no limits. They can host small, medium or large-sized websites, or a combination of all, its strictly up to him.
While the web hosting package prices of the web hosting provider are set, the reseller has the flexibility to charge prices that are fair for his services. Usually the web host provider offers discounts for individuals who participate in the reseller plan. These discounts are typically in the form of percentage discounts or set flat rates for plans. The reason the discounts are offered to the reseller is because the reseller is finding more business for the web hosting provider and handling the majority of customer interface. This eliminates a lot of work on behalf of the web hosting provider and allows the web hosting provider the opportunity to focus more clearly on the technical aspects. Everyone benefits!
When determining the pricing strategy for the reseller's hosting package, he needs to consider the other features offered in conjunction with the web hosting: website design, FTP, script writing, FTP + debugging and etc. They need to look at the total package being offered and develop the price around this.
The reseller has the opportunity to establish a premiere reputation in the web hosting industry and create consumer loyalty. Who knows, if the consumer base is large enough, he may even want to consider starting his own web hosting company. The opportunities are endless as long as the reseller remembers the customer service.