The Meaning Of a Web Hosting Reseller

Just what is a Web host reseller? It is a business, and independent contractor, that buys server space at a discounted price from a higher-tier Web host and then resells it, sometimes in smaller increments, to its own clients. The reseller often enhances the value of their Web hosting services by offering special expertise in addition to providing business consumers with an Internet presence.
The typical customer of a reseller is an “end-user” such as a small business. These customers add continuity to the Web host industry's supply chain. Resellers act as "middle men" by extending their revenues to reach higher-tier Web hosts who benefit the most because they essentially mass target their products and services in niche markets. The reseller can then mark-up the cost of these products and services to make a considerable profit.
Most resellers are comprised of second-tier hosting companies, Internet service providers, Web designers, publishers, domain registrars, or individuals who want to capitalize on the expanding market for enterprise-class Internet services and solutions.
They know that they don’t need to maintain a rack of Internet servers to be successful at providing top quality Web hosting services. In fact that they don’t even maintain infrastructure. This allows them to provide additional “value-added” services that are cost effective. It also allows them the ability to provide the best possible e-business solutions to their customers.
Web developers and system integrators are resellers who are responsible to provide hosting that ensures compatibility with the solutions that are implemented. Today, business consumers want and need "integrated solutions." Strong, reliable Internet connectivity is a “must have” as a central component. For this reason, business consumers specifically seek out resellers who provide this requirement.
Resellers are also selected as a total “Web solution” because most specialize in customer relationship management. The emergence of many second-tier Web hosts can be attributed to the growing need of business consumers to locate a hosting provider that can give them not only the best that network technology has to offer, but also provide them with exceptional customer service. This is where resellers fit the bill.
While many higher-tier hosts do provide technical support, the volume of their client base prevents them from offering personalized customer service, especially for new business consumers buying Web hosting services. This gives resellers an opportunity for to add real value to their services, by offering their customers a higher level of technical support and more personalized customer service.
Customer service is enhanced in several ways. By creating more in-depth, customized documentation for customers and leveraging their resources, resellers are able focus more on the quality of the service that they provide, leading to increased customer satisfaction. Because of this, resellers have gained a strong, loyal customer base of small to mid-sized enterprises (SMEs) that purchase Web hosting services.
It is estimated that approximately 65-70% of the client base of higher-tier SME Web host are provided through resellers. This is important because it makes resellers a tightly integrated component of the overall SME segment of the Web host industry. With projected rapid growth within the next three years, the reseller Web hosting industry shows no signs of slowing down. It offers an appealing and profitable opportunity that will not only build solid business partnerships, but also generate increased profits.