I don't understand the reasoning of the difference. Could someone explain?

Example:

Shared hosting = 50gig space, 500gig bandwidth, & 3, 5, 10, unlimited domains for $6 to $10 per mo.

Reseller hosting = 5 gig space, 50gig bandwidth, & 5, 10, or unlimited domains for $20.+ per mo.

Why go reseller? You pay a lot more for a lot less.

Depends on the provider really, but I would try to equate this a little with the differences between dedicated servers and colo. One is making an assumption that the shared account won't use the space while the reseller eventually will. Same can be said for colo.

-Steven

I don't understand the reasoning of the difference. Could someone explain?

Example:

Shared hosting = 50gig space, 500gig bandwidth, & 3, 5, 10, unlimited domains for $6 to $10 per mo.

Reseller hosting = 5 gig space, 50gig bandwidth, & 5, 10, or unlimited domains for $20.+ per mo.

Why go reseller? You pay a lot more for a lot less.
You can't get true unlimited domains (not incuding addon domains) with a shared account. That's why you go reseller, if you need multiple domains hosted.

Steven's answer above is right too, comparing actual usage expectations from shared to reseller, and colo to deds.

A reseller package allows you to create accounts seperately along with other nifty features. It gives the reseller's clients their own account to login and control. Alot of resellers do not represent themselves as resellers, it's usually hidden under the blanket so that clients would never know their using another company's server.

Many companies do not allow you to resell space and bandwidth on a shared hosting plan. You may host multiple sites that you own, but not your clients' websites.

Many companies do not allow you to resell space and bandwidth on a shared hosting plan. You may host multiple sites that you own, but not your clients' websites.

Precisely...

Note that Reseller accounts will also be in a shared environment...

Mostly because in a reseller account you have access to WHM
Also, there're more chances that you're going to use all your resources than in a shared account.

A reseller hosting environment is just that; reseller.

With a reseller account you have abilities/privileges that you do not have with a shared hosting account. You also get reseller hosting tools that expand your account to much more than a simple hosting account.

Personally, I don't agree that it's anything to do with resources. An allocation is an allocation, no matter how many users you split it between. If it was a case of just allocation then companies would be admitting that they are simply overselling more on their shared accounts than they are on their reseller acounts.


Simon

Yes, of course, most host oversell, that's not something new. Resellers does it too, but in less margin, that's why prices are higher, that's not new either.
Indeed, to give a customer access to WHM it costs nothing, just a few clicks.

With resellers, you are also placed on better servers, I believe.

I prefer resellers because I don't want people stalking my 'main' site through domain.com/site2, for example.

Personally, I don't agree that it's anything to do with resources. I respect your opinion, but disagree. IMO it has everything to do with the patterns of actual usage.

If anything, in a world with no overselling, reseller hosting would be true "bulk hosting", where the margins of the provider would be smaller, but the volume would more than compensate for it.

If it was a case of just allocation then companies would be admitting that they are simply overselling more on their shared accounts than they are on their reseller acounts.In an industry where overselling has become a word with a negative connotation, making it almost a synonym with overloading, most providers either avoid commenting (providing insight) on their levels of overselling, or keep on repeating like automatons :"We don't oversell."

...or maybe I misunderstood your position?

Yes, of course, most host oversell, that's not something new. Resellers does it too, but in less margin, that's why prices are higher, that's not new either.
Indeed, to give a customer access to WHM it costs nothing, just a few clicks.
But the difference between a reseller account and a shared hosting account is far greater than just a few clicks and some MB and GB. The differences are stark; everything from the support experience required (the differences between supporting a reseller and a shared hosting user are massive), to the VAR features to be made available to the reseller.

Dan: I think you did misundertand me. My point is that reseller hosting's differences to shared hosting run much deeper than allocations of disk space and bandwidth. Disk space and bandwidth are often, outside the budget hosting world, the last thing a company advertises, and a client looks for.

You do also bring up a great point: wholesale/bulk hosting.

I think it's important to introduce users to the big difference between reseller hosting and wholesale/bulk hosting. I see a lot of companies that describe reseller programs almost as bulk/wholesale hosting. A lot of companies make this mistake when they start offering reseller programs, and really leave nothing for an actual reseller program.

It's unfortunate that the reseller sector has been saturated with wholesale/bulk hosting programs masquerading as reseller programs because it leads to this type of thread; where the user has no idea of the difference between the two sectors, which in reality are far removed from one another.


Simon

Still is one customer, unless you offer support to your reseller customers.
Number of sites it may depend, some host offer unlimited domain on shared plans, so, that wouldn't be a difference either.

I still think that the biggest price difference is about the "overselling factor"

I think it's important to introduce users to the big difference between reseller hosting and wholesale/bulk hosting. I see a lot of companies that describe reseller programs almost as bulk/wholesale hosting. A lot of companies make this mistake when they start offering reseller programs, and really leave nothing for an actual reseller program.

It's unfortunate that the reseller sector has been saturated with wholesale/bulk hosting programs masquerading as reseller programs because it leads to this type of thread; where the user has no idea of the difference between the two sectors, which in reality are far removed from one another.That's a great point Simon, but it's more about reseller hosting classifications.

I don't think the examples given by the OP really go beyond the budget sphere of hosting anyway. :)