It is easy to Start a Hosting Company as Reseller, But Who is Actually Managing the Customer?

On the surface, reseller web hosting presents itself as a flexible, affordable solution for discerning customers looking to establish their web presence.  Reseller web hosting companies are quick to brag about their competitive pricing and customizable control panels, but customers need to be aware of the shortcuts and limitations that exist.

In a perfect digital world, web hosting user interfaces are instantly understood, servers never fail or become overloaded, and end users can speak directly with a representative who has full server control and all the answers.  Until that world exists, end users need to fully understand what they are paying for.

Most often, reseller web hosting is a low-investment way for a webmaster to generate revenue by portioning and reselling webspace and services already sourced from a parent hosting company.  The reseller usually has no responsibility or access to the physical servers, but is able to rebrand the services as their own and divide them amongst a multitude of new customers.  Without the need to purchase or maintain any additional hardware, resellers can establish themselves as 3rd-parties and divide the initial service package into a variety of affordable, web hosting packages.  Monthly costs to the end users can be kept competitively low, but reduced monthly costs can be of little worth when end users become affected by the increased risks and limitations of reseller web hosting.

Down Time and Server Overload

Most notably, all physical servers experience down time, whether due to maintenance, overload, or hardware failure.  When this happens, the end user’s freshly designed online business can be taken off the grid, and the reseller cannot provide timely answers because they have no administrative control or physical access to the servers.  Consequently, end users and the customers they need to serve can be left in the dark longer than they would if the end user had contracted services directly from a hosting company.

A common occurrence with purchasing services through a reseller is that servers can quickly become overloaded.  To stay competitive, resellers have to divide their services as much as possible to keep their advertised prices desirable.  As an example, a reseller might sell fifty accounts that can host an unlimited number of domains.  As web traffic starts to flood the unlimited number of domains within those fifty accounts, the reseller’s initial pipeline from the parent hosting company can become bogged down and congested, resulting in poor service for the end users’ clients.  This can seriously affect the bottom line of end users who are running e-commerce websites.  Resellers make assurances that they do not allow servers to become overloaded, but the reality is that resellers are looking to earn revenue by dividing webspace and services as much as they can.

Everyone should do their best to ensure that they find an affordable web hosting service that suits their needs, but the limitations of resellers shouldn’t be overlooked.  The chance of increased down time and delayed answers can cost the end user a lot more than what they’re saving in monthly fees.

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