reseller – Page 2

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.

A reseller is a company or individual that purchases goods or services with the intention of reselling them rather than consuming or using them. This is usually done for profit. One example can be found in the industry of telecommunications, where companies buy excess amounts of transmission capacity or call time from other carriers and resell it to smaller carriers.

They are responsible for interfacing with his/her own customer base, but any hardware, software and connectivity problems are typically forwarded to the server provider from whom the reseller plan was purchased. Being a profitable reseller firm usually involves extensive advertising to get customers. While the monthly fees with major hosts are only a few dollars a month, it’s a low margin business, and resellers must devote large advertising budgets to compete with established competitors.

According to the Institute for Partner Education & Development, a resellers’ product fulfillment-based business model includes a corporate reseller, retail, direct market reseller (DMR), and eTailer; less than 10 percent of its revenue comes from services. Resellers are known to conduct operations on the Internet through sites on the web.
For example, this occurs where individuals or companies act as agents for ICANN accredited registrars. They either sell on commission or for profit and in most cases, but not all, the purchase from the registrar and the sale to the ultimate buyer occurs in real time. These resellers are not to be confused with speculators, who purchase many domain names with the intention of holding them and selling them at some future time at a profit. Resellers, by the very nature of their business are retailers.

Another common example of this is in the web hosting area, where a reseller will purchase bulk hosting from a supplier with the intention of reselling it to a number of consumers at a profit.

Software and eBooks are two products that are very easy to obtain by resellers. Their digital format makes them ideal for internet distribution. In many cases, such as brandable software, the reseller can obtain even the right to change the name of the software and claim it as one’s own and resell it on an eBook shop hosting platform.

A reseller is responsible for interfacing with his/her own customer base, but any hardware, software and connectivity problems are typically forwarded to the server provider from whom the reseller plan was purchased. Being a profitable reseller firm usually involves extensive advertising to get customers. While the monthly fees with major hosts are only a few dollars a month, it’s a low margin business, and resellers must devote large advertising budgets to compete with established competitors.