What is Reseller Hosting?

Reseller hosting refers to the act of buying

a hosting account with a large amount of disk space and bandwidth that you break apart into smaller packages and sell to your customers. This can apply whether you are buying and reselling from any type of hosting package.

Some people start with reseller hosting package and then move up to a a VPS or dedicated server. When I first got into the hosting industry I bought a server, setup a control panel for it, and sold small hosting plans to friends, family, and people I knew from online gaming. It helped pay my way through college or at least beer money. Lots of people start this way and grow to dozens of servers or even hundreds. Hosts like HostGator started with 1 server and now have thousands of servers.

Becoming a hosting company is good for a lot of people but especially web designers. As a web designer you already know people that need a web host so you might as well offer them hosting for a low monthly rate. For more info on reseller hosting I highly recommend Reseller Hosting Guide. It goes into a lot more detail on business planning, setting your account up, marketing, and running your business.