Reseller hosting implies that not only can you find great web hosting for your site(s), nevertheless, you can also provide it for the others being an extra income source. Web hosting reseller programs enable you to become middleman (or woman) between existing web hosting providers and new customers that you find for them. Income in reseller hosting programs comes from in the form of commissions paid directly by the provider and/or profits based on reselling discounted packages at a higher price.
Web hosting businesses that offer a hosting company reseller program think it is to be an exceptionally popular tool to allow them to market and sell their services to new customers in untapped markets with minimal overhead. As a participant in a web hosting reseller program, you would be a hot commodity to these businesses, who'll usually compete to obtain your reseller hosting services almost more than they could to obtain new customers. Once you consider it, it creates perfect sense; one client is just one client, but any one person doing reseller hosting represents limitless new customers.
The benefit to establishing a reseller hosting service, instead of, say, running your own server and starting a web hosting services from scratch, is that you get the support and sources of a recognised firm. You can sell and perhaps manage a small portion of an already successful enterprise instead of having to scrimp and save yourself, sweat and toil to insert a fresh player onto an already inundated field of competitors.
There are a number of methods for you to sell web space on another company's server:
You can become the web host's agent, much like other affiliate marketing programs in which a link from your own sites and advertisements may take the potential customers directly to the business's website, or customers may simply mention you to the provider as their referrer. In any event, customers would purchase service directly from the web hosting company, and you also would then get a percentage as a reseller hosting provider.
But besides merely marketing another host's services, you could also elect to personally sell the web host's services directly to the customers. All future contact would then happen directly between your hosting company and the customer, but as a reseller hosting provider, because you didn't only the marketing, however the actual trying to sell, your cut would be greater.
You can become the host yourself, marketing, trying to sell, and managing the web space that you provide, having purchased it from the actual provider for a low price. It could may actually the client as if you truly owned your own hosting company, instead of just being an affiliate in a hosting company reseller program, though your hosting services would actually be considered a "skin" of the parent company. In this scenario and the following one, customers would call you for support rather than the provider itself.
Alternately, you can buy a bunch of web space and bandwidth yourself and parse it out as you see fit to provide whatever packages you intend to your customers. This, essentially the most comprehensive reseller hosting program, offers you maximum control over your organization and potentially the best returns, but it also requires a lot more attention, responsibility, and risk.