Reseller Website Hosting is a type of website hosting arrangement where a company (also referred to as the reseller) acquires the web hosting capabilities of a hosting company with the main aim of selling them to prospective customers. The hosting capabilities acquired include hard drive space and bandwidth, which are both essential elements of the website hosting process. The hosting company usually sells its services and expertise at wholesale to the reseller company, who in turn markets and sells to the final users. The reseller, however, is only able to acquire a proportion of bandwidth and hard disk space from the hosting company depending on the conditions of the reseller package they signed on to.
Though companies that utilize reseller hosting platforms may actually rent the servers of their hosting package provider, they may choose not to by reselling shared hosting services. This medium gives the reseller the go ahead to sell an allotted amount of bandwidth and disk space to their clientele even without the need to rent a server from the hosting company controlling their reseller account.
Most companies that are into reseller website hosting usually do so as an additional service to complement the major services they offer, or are web hosting companies themselves that do not have the finances and resources to begin a full fledge hosting company. Companies that augment their major services with reseller hosting packages include web development firms, web design companies, IT consultants etc. While hosting companies may have a cap or limit on the proportion of hard drive and bandwidth that can be acquired by their reseller customers, they do not control the purpose and manner in which the reseller company utilizes the acquired tools. Simply put, resellers are able to modify the service plans to suit their business ambition and target, while also deciding on a pricing plan that is tailored to their customers. Resellers even go further to change and customize the servers and control panels in order to align with their brand’s need. The hosting company, however, often times decide the payment structure for the lease of their servers and their functions. Many agree with their reseller clients to receive a percentage of the payments made by every new client added to the reseller’s platform; but only after a lease fee has been paid for the rented hosting tools.
To concisely simplify, the arrangement of a hosting company and a reseller is basically similar to the leasing of a home that can then be rented out by the party temporarily acquiring the property.
Reseller hosting is a simple internet venture to operate because of the lack of need to be knowledgeable in the technical aspects involved in the reselling process. The technical personnel needed to successfully maintain the activities and services of the reselling platform is bare, with a data center operator that is in contact with the hosting company mainly responsible for the maintenance of network infrastructure and hardware. The hosting company themselves are involved in configuring, securing, and updating the server at different instances to optimize functionality and satisfy their clientele.
The responsibility of the website reseller, however, is to provide an interface that will link with the consumer base thus ensuring an efficient cascade of services and a back-flow of revenues. This effective specialization and delegation of responsibilities also leave the reseller to concentrate on marketing strategies by finding numerous ways and medium to reach out to a vast number of internet users. With most resellers also offering web development and web design services as core components of their companies’ activities, it becomes easier to draw in the numbers of clientele needed to boost the reseller platforms. It can even be said that after the procurement of a reseller package from a hosting company, advertising and marketing form a bulk of the expenditure a reseller will incur, since it is not concerned with the maintenance of the systems and networks.
The profit margin for the reselling of website hosting is quite low, though this is normalized by the large amount of internet users continuously seeking hosting services. With most resellers also involved in other IT business endeavours, and the ease with which the reseller platforms can be run, it is almost certainly a viable commercial venture to be involved in.
While disk space and bandwidth are the most commonly acquired services by resellers from their hosting companies, there are other services and tools that must be included to increase the resellers’ reliability. These services and tools include:
Secure Sockets Layer (SSL) for reseller — this encryption that helps provide secure web pages to the clientele of the hosting company can also be sold at a discounted prices to resellers who then resell to the consumer base, thus pocketing the profits.
Domains can also be sold to the resellers who then register the domain names of their consumer base at higher prices that brings back a return in their investment.
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