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What is Reseller Hosting?

I keep running across it. It seems like regular hosting, but they give you an admin panel ON TOP of the other administration panel. So it's more or less exactly what it sounds like. You pay for reseller hosting, and you set it up and sell it back to your own customers. 

What exactly is the point of this? I get it, you're creating a hosting company, but personally I would never want to host on something that was reseller hosting based. I'd rather just cut out the middle man and host with the provider directly. And I love Ramnode for that. I get a VPS directly, manage it myself, and there is no middle man at any stage of the process. The downside of course is that we don't get a cPanel and have to do everything from scratch. Finna 

With reseller hosting, what is it generally used for? Is there a use case beyond just getting a quick little hosting company off the ground? - Our next project...
Its an easy win for hosting companies, as they get other small "hosts" as their customer. It then allows the smaller hosts an affordable option for getting started.

That said, I would prefer to cut out the middleman as well. Doesn't seem as efficient, in terms or price, support, etc.
I suppose these small hosts eventually move off of the reseller hosting, but doing that would be a nightmare. I've known web hosts that had their entire service on one single server. You can host quite a lot of websites on one server, but as soon as it scales beyond that, it's going to require a team of more than one to maintain it all. - Our next project...
Reseller hosting is where businesses sell website space to other businesses or individuals. The website reseller will buy a large amount of server storage space and bandwidth from a provider with data centres, like ourselves. This will be at a reduced 'wholesale' rate, so that they're able to make a profit. They will sell this on as a package, including email.

Effectively, the reseller becomes the hosting provider to the third party. They will often brand themselves as such. Companies like 20i offer their resellers the option of re-branding control panels, known as 'white label' hosting.

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