A web hosting reseller buys a particular web space from the web hosting company at a discounted price, or at a wholesale price. After buying the space, the resellers sell the space to the third party.
In other words, a web hosting reseller acts as a middle man between the web hosting company and the third party. Throughout the process, the third party becomes the client of the reseller and takes the benefits of the available hosting resources, including the disk space and bandwidth allowance.
Marketing Aspect
Web hosting companies typically save huge bucks on their reselling plan. It seems like a leasing plan that is transferred from one host server to another instead of buying or maintaining their own.
So, in other words, resellers just create a marketing platform and from there they sell others product to earn commission. In most of the cases, the services offered by web hosting resellers are so advanced and effective that the consumers do not really bother about the existence of the end sellers.
Customer Dealing Aspect
In most of the cases, as told above, the customers do not really care about the actual company that is actually their host.
Rather, the resellers are so good with their services that make the customers not to even become aware of the fact that they are dealing with the resellers who do not actually own the hosting company in practice. Since resellers are able to select from a wide range of dedicated hosting options, they are in position to offer their customers the best possible web hosting plans.
Revenue Generation Aspect
There are many resellers around the world who are making quite a handsome amount with their web hosting reselling business. Of course the people who are into this reselling business must have a clear idea about the profit margin and the quantity of reselling to make a good turn over.
The revenue generation aspect depends on the fact that a reseller can buy, for instance, nearly 1200MB of hard disc space from the hosting company with a price of about $30 per month. After that they can repackage this hard disc space into smaller packages to sell them out to different third party clients.
Even though there are few hosting companies that only offer limited privilege to their resellers, a huge numbers of hosting company actually prefer to provide the complete privilege in order to maximize the potentiality of the service both at resellers end and third party clients end. This eventually helps them to have a strong base for their business as well.
Now when a reseller buys 1200MB space with a price of $30 per month, if he split the space into 24 segments with a size of 50MB each and sell them with a price of $10 per month, it means that the reseller sells the web space with a monthly fee for $240, while he has bought it only for $30. The profit of course varies depending on the package he has to offer to his clients.
Latest Web Hosting Articles
Video Streaming: Why Choose Windows Media Video Streaming Hosting
By: Nicholas Tan | 21/11/2008
If I were to open a website, and I wanted to host videos on my website, I would have a lot of options open to me. Many websites will offer videos, and they too have many different options. However, some options are just better than others and there are a number of ways that a person can look at this when they think about how they want to host their streaming videos.
Web Designers and Services of Web Designing Companies
By: GOVIND SINGH | 20/11/2008
A website is an on line assimilation of information regarding a specific subject. It proves to be a research back up in the process of gathering information. The environment of today's business strictly follows the pattern of sheer competition. Sharing your business profile on line to attract the clients is a recent development.
The Reasons Why SEO Campaigns Fail
By: GOVIND SINGH | 20/11/2008
Most SEO campaigns fall flat on their faces and totally fail to achieve the objectives they were set out to accomplish.
Sadly the list of failures is not just limited to individuals who attempt to carry out their own SEO campaigns. It includes companies and so-called experts who are paid to carry out an SEO campaign for a client and end up totally failing to achieve what they set out to do.
Find Out Why Users Navigate Away From Your Website
By: Mike Parera | 19/11/2008
A website provides a large portal for your business to grow. Get information on various factors that make your website less appealing to the user and make him leave your website.
Learn Basics About Web Hosting
By: naveen gupta | 19/11/2008
This article comes as a complete guide to Web Hosting, discussing web hosting features and services. It would also talk about different Web Hosting Services ideal for different types of businesses.
Introduction of Cheap Linux Dedicated Server Web Hosting
By: Neowebspace Webmaster | 19/11/2008
There are lots of people suggest Linux server for the reliable web hosting solution, because of its fully security, genuine functionality, very affordable and reliability. You can get it all in the one package.
Types of Web Hosting - Assessing Your Website's Needs
By: Ed Grier | 18/11/2008
Before selecting a web host it is paramount that you understand the various types of hosting options you have. Every website has different needs and meeting your site's needs will help produce a satisfying end result. Hosting services available to you will likely fall into one of the following categories:
The Power of Windows Hosting - Save Time and Money
By: Michael Guilfoyle | 18/11/2008
The Windows Server environment will give you far more freedom and flexibility to run a wide range of web applications and allow you to get a dynamic web site up and running fast.