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A reseller hosting account is a kind of web hosting plan that lets the reseller purchase bulk or wholesale hosting services at discounted prices and then resell these host server space to third party clients. The third party becomes the clients of the web hosting reseller. These clients avail of the services and resources provided by big host providers through the resellers.
You can think of these resellers as middle men. They provide for you the bridge through which you can communicate and do business with the big host providers. The resellers offer the host space services they purchased from the big companies. This is better for them rather than setting up and maintaining their own servers, networks and equipment.
The resellers become so good at their work that the individual benefitting from their services don’t even realize that they are dealing with web hosting resellers who do not have their own web servers and networks. Since the resellers are able to have multiple accounts with many different big host providers the resellers are best able to provide their customers with the best possible web hosting plans.
There are many web hosting resellers out there in the market today making good profits. The profit they earn is actually based on simple strategies. The resellers’ profit come from the bulk purchases they have of server space. They can for example, buy a 1 Gig hard disk space from the big hosting provider for a monthly fee of 25 bucks. The resellers are then able to break the 1 Gig space they purchased into smaller pieces and in turn create smaller server space packages at lower rates. These smaller packages then become quite appealing to the small businesses and the individual webmasters wanting to run their own websites. This is the underlying reason why having your own domain is so cheap nowadays.
The typical price of having a 25 MB server space is about $5 monthly. The reseller is then able to make as much as 40 hosting packages, the income the reseller makes can be as much as $200. This isn’t that huge but once you compare it to the base value of the original investment which was $25 then the return of the original investment would be 700% in a month. Also, of the reseller has more than 25MB of space available then he will have more than $200 of gross income monthly.
Some resellers have their eyes set on owning their own servers, essentially graduating from being middle men into full fledged web hosting providers. These resellers are not yet able to support their ambitions this is why they still continue with being resellers. Soon, they will be able to set up, maintain their own servers and will become better able to provide technical support for their precious clients.
Most resellers are able to create custom packages from the original server space they leased from web server hosting provider. They are also given authority of using their own brand so that the customers become familiar with their brand consequently drawing more business for them.
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