The difference between web hosting providers and their resellers.In a hurry? You can click here to jump to the conclusion or solution.
The US counts approximately 10,000 web hosting providers on an average basis per year. About the half of these web hosting companies disappear every 1-2 years after startup which is compensated each year by new startups. These disappearances are caused by fierce competition and search engine ranking problems. So about fifty percent is able to survive. These remaining 5,000 web hosts are permanent companies. Ninety percent of this number (approximately 4.500) are web hosting resellers hosting their customer's accounts on the web servers of another company. The remaining ten percent (approximately 500) are the hosting companies themselves.
Why reseller hosting is, in general, better for customers.In general reseller hosting is cheaper. This is because a reseller can take less profit than the hosting provider itself and still survive. After all, the only basic investment a reseller has to make is a domain name which costs around $10 a year. Some web hosting resellers have the opportunity of hosting their sales site for free with the web host itself. Examples of these hosts are ResellersPanel in the UK and ResellerCluster in Germany. Other resellers pay hosting fees between $15 - $25 a month. If the reseller decides to advertise and/or to hire professional web design services, a marketing expert or other additional services, the investment will be higher but still less than investments made by the hosting provider itself. Starting a web hosting company means that one has to rent, lease or buy at least a dedicated server or a data center and an office. It also means that the host should hire employees or outsource the work. The minimum investment to start your own hosting business is about $50,000.
In general resellers are small businesses. So another benefit of choosing a reseller instead of the web hosting company itself could be a more personalized service and bonuses offered by the reseller such as free search engine optimization services, tips or other free extra's.
Is there a way to find out if a host is a reseller?Thats a good question! Probably if you do enough digging you could find it out. But why not simply ask them? They'll be happy to confirm it if they are reselling their web hosting packages. By the way, I'm a web hosting reseller myself. I offer domain names, SSL, shared, semi-dedicated, dedicated and VPS hosting.
What if I want to resell myself?If you're interested in reselling hosting plans, then you have many choices. There are enough hosting resell companies to choose from. Most of them offer paid packages and some of them are free. Examples of good free providers are ResellersPanel, ByetHost and Youhosting. Well known paid providers are, among others, Webhostingbuzz, Payperhost and Godaddy. Let me emphasize that the companies that charge money are not per se better than the free ones. If you find it difficult to make the right choice then you can check online for reviews about the above mentioned businesses.
Can I open a reseller account without actually reselling plans?Yes, you can. For example, the company ResellersPanel allows you to open an account only for yourself. As a member you will be able to buy multiple hosting accounts if you'd like to. There are many people using these kind of paid reseller hosting accounts for themselves. The reason behind this is the fact that it's easier to have one master account that is in control over as many sub accounts as you like while receiving only one bill on a monthly or yearly basis. These sub accounts can be used for unlimited domains, sub domains, email accounts etc. Other advantages are the fact that you can host websites of family and friends, you can have personal name servers, the creation of SSL certificates, signed by yourself, is possible and, last but not least, you have more control over your sub accounts because you will be able to set limitations for bandwidth and web space if needed. Take a look at the video if you want to learn more.
ConclusionAs we have seen, the advantage of a reseller company can be its lower pricing and, maybe, better services. On the other hand a disadvantage can pop up if you fall into the wrong hands. Most of them are reliable but, as with everything, there are exceptions to this rule. See to it that technical support and billing are taken care of by the web host itself and not by its partner selling the packages. Last but not least let me emphasize that this article is not waterproof. For example there are hosts with lower prices and better services than their sales partners. If you need to know more, you can watch the video below. Finally, if you are interested in the free reseller hosting company with the lowest web hosting customer account cancellation rate, may I invite you to read the banner at the top of this page? Thanks for your visit!
Best regards from Dick Detering.