Reseller hosting concept looks very complicated but it can be studied in some simple steps like, for an example, one party works like a distributor (reseller) and he purchases a big space on the server and further distributes in small parts to the retailers. One major party (reseller) who purchases direct from the web provider gets a big space at a cheap price and then further sells it for some high price, for profit. Thus the smaller parties gets a sufficient price and services for a cheap price from the reseller and thus they save a big amount, it will cost high if they purchase directly from the web provider.
Reseller hosting does not need extensive knowledge of the technical aspects of web hosting. More often the data center operator is responsible for maintaining network infrastructure and hardware, and the dedicated server owner configures, secures, and updates the server. A reseller liabilities are limited to the his/her own customer base and any hardware, software and connectivity problems are typically forwarded to the server provider from whom the reseller plan was purchased.
More and more publicity is required for the success of the reseller business. Basically it a low margin business, the monthly fees with major hosts are only a few dollars a month, and resellers have to spend big amounts for advertising in order to compete with established competitors. However, web hosting is one of the biggest online businesses, because every website needs hosting.
Reseller works like a middleman between the company and the semi users. Price is definitely the biggest advantage of reseller hosting. Sometimes this can cause you issues later on. A lot of the reseller hosting plans are relatively cheap, perhaps a few dollars a month. However, as mentioned before, unlike established web hosting firms, the resellers might not be able to provide reliable technical support.
The major advantage in brief to understand the advantage of reseller hosting is it is good for entrepreneurs who are starting their own business. It is a relatively low risk investment with limited startup cost. Reseller hosting packages vary in shapes and sizes. Generally the best reseller hosting packages will offer you total secrecy along with additional extras such as free billing software and a free offline network account.