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From the Reseller's Perspective
The typical web hosting reseller, if there is such a thing, provides web design services as his primary service offering. This web designer, whether a freelance individual or a sizable web design firm, has neither the resources nor the inclination to invest in, maintain, and service an expensive web hosting infrastructure. By partnering with a web hosting company and reselling its services to the design clients, the web designer is able to provide hosting services without paying for a high-bandwidth Internet connection, heavy-duty web servers, an on-call 24/7 technical support staff, or any of the other expenses that burden a hosting company. In addition, the web designer earns increased revenue from the markup he charges on the web hosting, and he is able offer his clients more competitive, more appealing all-inclusive web development services: design and hosting.
Web hosting resellers are not always web designers. Some are entrepreneurs seeking to enter the lucrative web hosting business. Unable to lay out the initial investment required to establish a hosting infrastructure, these resellers start reselling as an affordable foray into an industry that otherwise has prohibitively expensive barriers to entry. With hopes of gradually growing the operation's client base and revenues to the point where reselling is no longer necessary, such resellers plan to ultimately become full-fledged web hosting providers with their own hosting infrastructure. A handful of today's most well known web hosting companies followed this track; once resellers, they now host tens of thousands of clients in their own multimillion dollar network operating center (NOC).
Other resellers are located outside of North America, where web hosting is not available as reliably or affordably as it is in the United States and Canada. By reselling for a North American web hosting company, such international resellers can profitably sell high quality hosting within the their country while managing to undercut the local competition.
An important similarity among most web hosting resellers is that they target a local market, be it Fargo, North Dakota or Buenos Aires, Argentina. Resellers typically realize some sort of local market advantage that does not exist in the national or web markets. Given the hyper-competitive nature of the current web hosting landscape, obtaining hosting clients from the web market often proves much more expensive and difficult than obtaining them from the local market. Locally, a reseller might be able to capitalize on an existing client base, social and professional connections, a low level of competition, or cheap advertising opportunities.
- Introduction and Definition
- From the Web Host's Perspective
- From the End User's Perspective
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