Reseller web hosting is a system where the person who holds he account with the host can use the allotted bandwidth and hard drive space and hosts websites for other parties. It's like taking the service from the customer and selling it a higher price to other customers for a profit. It is a good way to make some money over the internet. For beginners who dream to be big internet hosting entrepreneurs someday, reseller hosting is the cheapest and most logical way to start a company.
There are various advantages you might find in venturing into a reseller hosting business. A reseller hosting package gives you a large plethora of server resources at your disposal. After buying the package, if u don't feel like reselling it you might find it's profitable to maintain your own websites instead with the large resources and that too at a much lower price. Another advantage is that most reseller hosting packages come with tools that make it convenient to allocate the server resources to you clients if you decide to resell. It has tools necessary to build a hosting site, create client accounts and even customer billing tools. Some packages even allow the resellers to establish their own branding via customized control panels and name servers. However there are some problems and downsides here as well. You will get low profits out of packages bought at low prices. The low end reseller hosting packages do not have the required resources that could make your business flourish. To avail those and therefore get high profits out of selling them, you need to buy a high end package. For individuals low on budget, this is a hindrance.