I often see the word "reseller". But what is a reseller exactly? Is it someone that sells web hosting for a web hosting company?

reseller means the person who resale ther service of any web hosting company. say you as a reseller will buy hosting from company which either sells dedicated servers or shared hosting.
say if you buy 100mb space for $50 you can split that space and resale it to 10 clients for $10 each and in this way you can earn $50. you will be using dedicated server resources of your provider. you only need to collect payment from your client and provide thim little bit techincal support.

Originally posted by mahinder
you only need to collect payment from your client and provide thim little bit techincal support.
if only it was a "little bit" :)

I get it.

Do resellers make lots of money or not?

That's up to the reseller. ;)

Some do make alot of money and some don't.

Originally posted by DeNasio
I get it.

Do resellers make lots of money or not?

It depends on how much effort a reseller put's into their company. It is easier to resell than run your own dedicated servers. Resellers simply sell accounts, and take out the profit from that account. Though, resellers have to provide support for your clients, and that's where knowledge come's into play.


Make sure to do a research on the subject, and do your homework, if you want to resell. The cheaper you get your resold accounts for, the more money you can make. For example, if you get 100mb resold account for $9.95/mo., it would be hard for you make a good profit. Even if you set your price to $14.95, it would still be expensive. Look for a low-prieced reseller program. But don't always settle for a host with low prices, if the host has bad support. Problems DO occur, and you wouldn't want to be left helpless.

Best Regards,
SLN

i agree with SLN

it really depends on what your provider charges & whether they have good support themselves; as even though you provide the majority of simple support, if your customer has a question only the techs [administrators] of the actual server [eg: your providors] can answer, it depends on them [your provider], as you have to email them and await an answer before you can email your customer.

example 1: i have a very cheap provider but they don't provide very good support, so i can sell cheaply but i won't often be recommended, so i won't get many new customers.

example 2: i have a provider who charges $15 per 100 MB diskspace/1 GB data transfer, they are not inexpensive but they have EXCELLENT support, which i reflect, thus i have more referrers, but am expensive, which deters many customers.

*geez.. more then 3 edits after posting ..i must be more drunk than i realised :P*

Look for higher discount prices... Some companies require you to purchase accounts bulk (best prices but not to start off), some give you 25%, 30%, 40% and 50% off. Before you start reselling, you should try that host for a month and test out their support speed. Without support and outstanding prices, there aren't much $$$ to be made.

Just my 2 yens.


-Andy

Buying something for cheap and selling it for a higher price to make a profit.