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What is a reseller?

The definition of a reseller is a company or individual that buys merchandise or services with the intent to resell them to a third party. Sometimes there is more than one level of resale before the product reaches the final consumer. 

The two most common types of resellers as it relates to the Internet are in the domain name selling and web site hosting businesses.

 Every registrar that sells domain names is a reseller for ICANN. 

In the area of web site hosting, resellers make a bulk purchase of space and bandwidth and then resell it to others.

In both of the examples above there may be several layers between the source and the final consumer. 

Some common Questions about hosting resellers

Q. If I don't want to be a reseller, why would I want a reseller account?
A.. Perhaps you have a number of your own domains to host and would like a little more control than you would get with a shared hosting account. Maybe you want to host your friends or social group.


Q: Who would want to resell web hosting? 
A: Someone who wanted to enter the business with little or no start-up costs would choose a reseller plan. Another example is a web designer that would like to offer hosting to clients as a part of a complete package of services.


Q: So I can create a web hosting company without owning or leasing any equipment?
A: Yes. You don't need any equipment! You don’t even need a broadband connection to the Internet. Many reseller providers supply you with everything you need to be successful in the online hosting market. Some offer ready-made templates and billing software. There are a few that do everything and send you a check once each month. All you have to do is bring in the sales.


Q: What does the term Private Labeling mean?
A: It simply means that the reseller offers the services without divulging the name of the actual supplier. The customer does not know who is supplying the product. This can be extended to include private nameservers.

 

 

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