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.
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. Normally as the customers increase, so does the profit margin for the reseller.
We can get some money by earning commissions from a hosting company. This happens 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 and resources involved
The cost of becoming a reseller and the equipment and people required in order to be successful depends on many factors.