The meaning of word reseller means to sell again, that is to sell a product or service to the public or to an end user, especially like an authorized dealer, making sure that he makes a considerable profit on sale.Just like a reseller of products, reseller web host buys a web hosting package from a hosting company and tries to sell it independently to its client after extracting his profit which can be in form of discount or commission that he gets from selling that account.
Example 1 :
The reseller purchases a package costing at discounted rates therefore he tends to make profit on selling the package to customers. And as the customer increases gradually the profit margin of reseller also increases.
Example 2:
The reseller can also get money in form of commission by just recommending potential customers to hosting company. In this case if a customer gets into the contract with the hosting company then reseller tends to get regular commission until the customer is using the services. In most of the cases in order to expand their business, web hosting companies try to outsource their services to resellers. This helps them not only to save marketing costs but also it enables them to pay more attention on business side of things.
The best advantage of being a reseller is that there is no requirement of lot of upfront investment. Also as per technical knowledge is concerned, there is no need of it. What is required is just Account management and Internet skills. However as with any business it would be worthwhile if one have some sales and marketing experience which will help in not only attracting customers but also will help in keeping them. The hosting company in most of the cases provides and maintains all the hardware and software itself. Therefore even no investment is required for hiring expensive IT staffs for providing support. By providing basic support and leaving the more technical issues to the parent company one can easily achieve support staff.
More information can be found at our web hosting reviews.
