Well it is often a topic of discussion as how a reseller hosting actually works and can a web developer be transformed into a reseller? A reseller purchases a Web hosting package from a hosting company and tries to sell it independently in order to make profit. The profit for the reseller presents in either the discount or in the commission she or he gets from selling an account.
It is a good source to extend their business reach without the cost of marketing and sales and also helps them to concentrate on the business side of things. This is the reason why these days as the number of websites are increasing at a rapid rate most of the hosting companies are encouraging the resellers business.
Overselling is a fairly common practice among Web hosts. Overselling is based on the hope that none of the host’s customers will come close to their allotted limits. Consider that a typical Web host might be allotted a set amount of space and bandwidth.which they divide up to sell to their customers. Now, suppose the Web host offers plans that comprise 200Mb of space, and 2,000Mb of bandwidth. Without overselling, the Web host will be limited to only five of those plans before they’ve used up all the space and bandwidth they’ve purchased from their reseller.It can work, but it can also turn around and bite the host — particularly if a customer genuinely does need the amount of space and bandwidth they’ve purchased.
The cost of becoming a reseller and the equipment and people required in order to be successful depends on many factors.Whether the site uptime,disk space,technical solutions etc.