Reseller hosting is a self explanatory term that represents the reselling of the part of the bandwidth and hard disk capability allotted to the reseller by a web hosting company. The service is very popular amongst the website designers and web developers who provide hosting services as a value added service to their clientele.
Reseller hosting enables the reseller to earn a decent amount of profit by reselling a part of its allotted server capabilities with third parties or by renting the same to them. In this arrangement, the reseller is responsible for all the communication with the third parties renting the server space while the original server hosting service providers remains responsible for technical troubleshooting.
For being successful in the reseller hosting business, resellers have to undertake intensive advertising measures because the margins between the shared/dedicated hosting and reseller hosting is fast shrinking. A customer should have enough incentive to opt for the latter.