Resellers may operate in a range of industries within the IT sector. In hosting, for example, a web hosting reseller purchases services from a larger hosting provider and resells the services to customers. In addition, a reseller may purchase and resell access to servers in a hosting or colocation facility. In this context, the reseller acts as a retailer of sorts, acquiring and reselling services from hosting and internet services firms acting as wholesalers.
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Resellers set the pricing structure for their offerings, not the web host that provides the servers and software. In many cases, resellers can brand their packages by using a customized control panel. This establishes a level of trust with people who may already be familiar with the reseller's brand. Who wouldn't want to set up shop with your company if you've done well by them in the past? And branding is important if you're looking to get into the reseller hosting game. More on that in a bit.
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In addition, you have to market your services to the public in order to attract clients. For example, if you already have an established web development company, then you have an established client base to which you can pitch your new hosting packages. Otherwise, you must hustle to spread awareness about your brand. After all, Person X may be familiar with GoDaddy's web hosting packages, but she may not be familiar with your brand. If you're part of a big company with big marketing dollars to spend, you may not have much to worry about. On the other hand, a one-person operation may have difficulty spreading the word about its new web hosting packages. Still, there are many would-be customers out there who prefer to deal with a smaller, more intimate company. That might be your sweet spot, as a reseller of web hosting.
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