There are two major types of web hosting you might run in to during your searching; shared hosting and Reseller hosting. There is really only one major difference between these two types of accounts. While both account types share server resources with other users, when you get a reseller hosting account you purchase a larger portion so that you can resell those on to other users.
The host still retains control of the server and are in control for updating server software and maintaining the server. The host will generally also provide support to the reseller, so if there are any issues or slip-ups the reseller will be able to contact the host.
If you just have a single website then you won't have any advantages by going with a reseller package. If, however, you have a number of sites that you host you can generally save quite a bit of money, as buying hosting in larger portions is generally cheaper.
Since you can setup your own packages, this can also be a great way to start your own hosting company. A number of companies even offer free or reduced-price billing and support software if you sign up for a reseller account with them. You don't need to deal with server problems, just finding customers and providing support to them.
A big drawback is that if you are unable to solve a customer's problem yourself you will need to contact your host and wait for a reply. This can become a lengthly process and is one of the major reasons some customers are unwilling to buy hosting from a reseller. You should be able to handle most problems yourself and with proper support protocols it shouldn't be a big problem.
If you have server admin experience it might be annoying trying to deal with some issues that you know how to fix, but just don't have the access to. You can try asking the host if they will give you access to more functions so you can fix things. The worst that you happen is the host says no, but at least they should be happy that you're willing to try to do more on your own.
If you're new to hosting, or maybe are a designer looking to add to your bottom line, reseller hosting can be a great option. Without needing to risk a lot you can have your very own hosting company up and running.
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