For some people this is the dream about their business. For others this is the person who disappeared with their money paid for hosting. For someone else a reseller is a person who provides stable site work, who helps to fix the network and who provides hosting for a friendly price. Such reseller can provide non-standard configuration which is very difficult to ask a big company for.
Who is a hosting reseller? Let’s see a client’s point of view.
Re-seller’s business is easy and difficult at the same time. It does not demand much income. Even a pupil or a student, having borrowed $ 10-20 from parents, can open a reseller’s account at a server owner or at a big hosting company. And just the next day, being successful enough, this pupil can sell 2 or 3 clients’ accounts to his/her class-mates or group-mates. In a week some more accounts can be sold. Money spent on a primary account can be returned back. Some sum of additional money can be earned if to take some efforts.
The more clients appear the more income becomes. In a few months there will be a moment when some more disk space should be bought from a big hosting company. Very often this company is a reseller too, but it is much bigger than you. Business grows, widens, but something wrong can happen.
The described above picture is ideal. In practice, these students (which are a big community among reselling beginners) are unable to provide minimum support service when difficult questions need solving. Clients have to wait for days or weeks until such resellers will give any answer if they will give it.
When business is organized in such a way, it is very difficult to expect that solving your problem is a high-priority task for your reseller.
One more trouble is money.
When resellers get it, they can spend it on whatever they like. But a day later there are no money for paying to a server owner. Parents do not give money any more. The result is excluding of the reseller’s account and 10-20 clients’ accounts with it. You can say good-bye to your money and, which is more sad and serious, you can say the same to all your account data. If this is a simple HTML-site, it will be very easy to rebuild it. But if this is a dynamic site, a forum or a portal and back-up was not done for 2 or 3 weeks the situation is very dramatic then. Even if you get to know what server your site was on, you will not be given any base back. As for a hosting company you are neither an owner nor a client.
So, despite comparative cheapness of the service you can have more problems than advantages.
Variant 2. This is just a scam. Buying a domain and site creating is not a big deal, but there are a lot of people who are ready to pay for a year beforehand for cheap hosting.
Variant 3. There is somebody who owns a site (often there are 2 or 3 sites). Because of some purposes these sites are located at different hosting-providers with different conditions and quality. While developing, these sites become more and more difficult to manage. As the result, the wish appears to locate all the sites in one common place. It can be own reseller’s account, that gives huge advantages in quick site managing, free dynamic redistribution among the sites. Moreover, to buy something wholesale is always cheaper than to pay for several separate hosting accounts.
When a person buys a reseller’s hosting account, he/she will have a lot of free resources. Why not sell them to somebody else? Time passes and a reseller can get small income, then more resources are bought and a reseller starts registering domains. In some years he/she makes the business legal and creates own company with accountants and so on.
For you as a client the third variant is more preferable. This reseller has wide experience in communicating with different hosting providers, he/she knows whose hosting has high quality and has tried several of them. This person chose definitely qualitative hosting. With this experience the reseller can answer you in time and give a lot of competitive details. Such resellers treat their clients as junior colleagues. This reseller will not disappear at once.
Before choosing a reseller, collect testimonials about this person or company, check the domain name registration date. Do not pay for a year to a company which has existed only for 2 or 3 months.
Among all the hosting providers try to find some that gives free trial period of time.