Reseller Hosting - Advantages

Before we come to the advantages, we need to understand what Reseller Hosting is all about. There are agencies that provide web hosting as the primary service. They employ a very large number of powerful servers and this requires a relatively larger space and a huge capital outlay. Despite this their employee strength is not much. So, despite a huge capacity to take on hundreds of thousands of clients, the small number of their employees is not able to attend to individual clients. That is why they have to appoint resellers who can, in a way, represent them and bring in clientele.

These resellers, because of their local reach, are able to contact a large number of potential customers for hosting their respective websites with them. In effect, what happens is these resellers use of part of the total bandwidth of the main service hosting agency and offer even smaller chunks of bandwidth to individual customers.

As resellers are better staffed than the main hosting agency, they are able to give individual attention to a large number of customers. While they do this, they also provide services like web designing, programming and domain registration. This is something that the hosting agency could never have done.

In a way, this works like distribution of work in the sense that the hosting agency takes on bulk business and corporate clients and leaves a very large number of small clients to the hosting resellers. The hosting agencies are happy because they get to reach so many clients without moving an inch from their place with the added advantage that they do not have to attend to small individual clients.

While the profit share of the resellers is relatively small, they are happy because they can do business without the massive capital outlay. The smaller clients are happy as well because the cost of hosting their websites is now within their reach. This is because this entire business of reselling brings down the unit cost of servicing each client. The costs remain low for another reason. Each of the main hosting agencies appoints several resellers who can, theoretically, compete for a share of the same marketplace.

If you are a small company it will be cost effective for you to host your website with one of the resellers. In the process you will also get personalized service, some value added features and, maybe, some freebies. However, if you are a large corporation, you would rather host your website with the main hosting agency. This is because their scale of operations matches yours and they would understand big business requirements far better than the best of resellers.

"Jeff K Whitney" is an expert in "Web Hosting". For more helpful information about "Web Hosting" and expert tips and tricks, please read all of "Jeff K Whitney's" articles!