Web host reseller is a business that buys server space at a discounted price from a higher-tier Web host and then resells it to its own clients.

Usually a reseller is an independent contractor who buys Web space from a reseller hosting service provider in order to sell that same space, sometimes in smaller increments, to businesses and individuals for a substantial profit. The reseller often enhances the value of Web hosting services by offering special expertise on top of raw Internet presence provision.

Many resellers are similar to affiliates, and are paid based on how many customers they sign up every month. The difference between affiliate programs and cheap reseller hosting services is that resellers continue to be paid each month for every client they sign up, whereas affiliate programs are generally paid a one time commission. The first thing you will want to do if you plan on becoming a reseller is to decide what products or services you want to sell.

Resellers are able to enhance customer care through offering more personable service and by leveraging their human resources to create more in-depth, customized documentation for their clientele. By so doing, resellers have endeared themselves to a large number of small to mid-sized enterprises (SMEs) who purchase Web hosting services.

Resellers that physically maintaining a rack of Internet servers is not required to be successful at providing Web hosting services. Indeed, the fact that they do not maintain infrastructure means that resellers can provide additional value-added services to their clients due to cost-efficiencies. For this reason, the majority of Web host resellers are either Web developers or system integrators who provide e-business solutions to their customers. Typically, their customers want ‘integrated solutions, which include Internet connectivity as a central component. Since their customers contract them for their expertise, Web developers and system integrators are usually granted the responsibility to provide hosting to ensure compatibility with the solutions that are deploying.

Most resellers are second-tier hosting companies, Internet service providers, Web designers, publishers, domain registrars, or individuals who wish to capitalize on the expanding market for enterprise-class Internet services.