Ok heres what I'm confused about:

Resellers buy hosting from somewhere then resell it to someone else at what ever price they wish, but how does this benefit the acual host? Wouldn't they lose money by only getting one person's monthly bill instead of several?

Also, how old do you have to be to be a reseller?

Well for plan resellers they think that your going to have a lot of sales. So they give u cheaper prices because your going to bring them more customers. (Overall more $$ For them!)

Chris

So do they charge you for each customer you get also? Just not as much?

There are two systems around: The host sells his resellers...

1. ...packages at some discount (up to 50%).
2. ...one big account, the reseller sells space/bandwidth from this big account.

The host will not loose money, in most cases he will sell more packages/space/bandwidth because the resellers brings customers the host otherwise wouldn't have gotten. And, the most costly factor is support, that's why the host can give some generous discount as the reseller has to do support for resold accounts.

Ahh ok, thnx everyone.

One more thing... (and this is a touchy one)

For the most part, you only need a credit card or some other accepted form of payment to become a reseller.

This has led to some few people who shouldn't be doing reselling doing reselling. (Search for "Shang")

Shang.... jeez