“Reseller”, as the name suggests, is someone who purchases something in bulk and sells it further at a higher cost. Similarly, a web hosting reseller is a person who, as the account owner, purchases the web hosting services from the web hosting service providers at a wholesale price and sells it to the customers at more price, earning profit. A reseller may obtain a dedicated server from the service provider or can resell an amount of the disk space and bandwidth to his customer, unlike renting a server obtained from the service provider.
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Reseller hosting requires a basic knowledge of web hosting India as the owner only configures, secures and updates the server while the other technical aspects like network structure and hardware, are taken care by the data center operator. Reseller just has to interact with the customer base and the technicalities are forwarded to the service provider.
Now a days, many website designing companies offer web-hosting as an additional service. Therefore, for a start-up, reseller hosting can be a cheaper option. In most of the reseller hosting plans, a reseller can create own service plan and also is free to choose own pricing structure. Control panels and servers help them to establish their own branding.
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Fees for getting these services are low so there is a cut throat competition among the established web hosting providers. To stay firm in the market, one has to invest largely in advertising so as to reach more and more customers. Hence, profit margin is low. Despite the low profit margins, web hosting service is one of the largest online businesses because number of internet users are increasing day by day and many small and large businesses are going online. All online businesses have to maintain their web site and all websites need to get hosted.
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As mentioned earlier, profit margins are relatively low due to heavy investment in advertisements; however, it does not mean the earning is restricted. Web hosting company has to pay a little cost and as the customers increase, profit also increases. Therefore, initial cost might be a little more but eventually return becomes good, when you become popular.
Since, the service provider is responsible for all the technical assistance; reseller can concentrate more on the marketing and customer support. Also, the maintenance cost is borne by the linux web hosting company and not the resellers.
Now as every story has two sides, there are certain loopholes in reseller ecommerce web hosting. Like the server is responsible for the technical services, quality of reseller’s service will directly depend on the quality of the upstream server. Resellers may lose clients if the server is down frequently. Another problem occurs when a web host is changed. This causes inconvenience to the clients. Hence, it is recommended that one should choose a dedicated server and try to get a web host which offer high quality and managed services.
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