| Before we come to the advantages, we need to | | | | and corporate clients and leaves a very large number |
| understand what Reseller Hosting is all about. There | | | | of small clients to the hosting resellers. The hosting |
| are agencies that provide web hosting as the primary | | | | agencies are happy because they get to reach so |
| service. They employ a very large number of | | | | many clients without moving an inch from their place |
| powerful servers and this requires a relatively larger | | | | with the added advantage that they do not have to |
| space and a huge capital outlay. Despite this their | | | | attend to small individual clients. |
| employee strength is not much. So, despite a huge | | | | While the profit share of the resellers is relatively |
| capacity to take on hundreds of thousands of clients, | | | | small, they are happy because they can do business |
| the small number of their employees is not able to | | | | without the massive capital outlay. The smaller clients |
| attend to individual clients. That is why they have to | | | | are happy as well because the cost of hosting their |
| appoint resellers who can, in a way, represent them | | | | websites is now within their reach. This is because |
| and bring in clientele. | | | | this entire business of reselling brings down the unit |
| These resellers, because of their local reach, are able | | | | cost of servicing each client. The costs remain low |
| to contact a large number of potential customers for | | | | for another reason. Each of the main hosting |
| hosting their respective websites with them. In | | | | agencies appoints several resellers who can, |
| effect, what happens is these resellers use of part | | | | theoretically, compete for a share of the same |
| of the total bandwidth of the main service hosting | | | | marketplace. |
| agency and offer even smaller chunks of bandwidth | | | | If you are a small company it will be cost effective |
| to individual customers. | | | | for you to host your website with one of the |
| As resellers are better staffed than the main hosting | | | | resellers. In the process you will also get personalized |
| agency, they are able to give individual attention to a | | | | service, some value added features and, maybe, |
| large number of customers. While they do this, they | | | | some freebies. However, if you are a large |
| also provide services like web designing, programming | | | | corporation, you would rather host your website with |
| and domain registration. This is something that the | | | | the main hosting agency. This is because their scale |
| hosting agency could never have done. | | | | of operations matches yours and they would |
| In a way, this works like distribution of work in the | | | | understand big business requirements far better than |
| sense that the hosting agency takes on bulk business | | | | the best of resellers. |