The reseller purchases the host’s resources and then allocates them to clients at a profit. The reseller may borrow a dedicated server from a hosting organization with rent, or resell shared hosting resources. Usually, reseller hosts are web-designing firms, web developers or system administrators or integrators offering web hosting as an additional service.
Resellers do not require any in-depth knowledge about the fine points of web hosting. The reseller is responsible for interaction with their customer base, while the service provider or the actual host handles all hardware, software, and connectivity problems.
Making the cut as a successful reseller requires extensive advertising, since it is a low-margin business.