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Reseller hosting was born out of a discovery that many a webmaster often had more than they needed on their hosting packages. What you would spend on a good shared hosting account would be between £ 20 and £ 40 per year, but would you use everything in the package to call it value for money? In all cases like this you are spending more for something you are not fully using. A good solution to this was to lease out your space and bandwidth to others for a price. In many cases, this allowed webmasters to completely cover their own hosting costs and have a little money left over! This was the first occurrence of reseller hosting, which has webmasters another channel of revenue from their websites.
Reseller hosting has developed to the point that big hosting companies have packages specifically for people who are looking to become their own miniature hosting company. A side to the coin that you may not have considered is that you are responsible for policing the sites that are created by customers who sign up to you. That means you will have to watch out for customers creating illegal content, such as certain kinds of pornography, hacking tools and other undesirables. If you do not police your package adequately, it may well be you taking all the stick and having your reseller account banned! If all goes well with your reseller hosting venture then you may find it's time to upgrade your services so you can accommodate more customers! The next level up is to upgrade your reseller account that you have with your provider to a dedicated server. This means you have a whole server just to yourself, with far more storage space, bandwidth and processing power than you ever had before with your reseller hosting package. Before you start selling your hosting packages, you will need to split your new server up into multiple, virtual servers. In order to do this, you need to make sure your dedicated server's CPU supports virtualisation, otherwise you will not be able to create virtual servers. A typical scheme for this method would be to have a main virtual server that accommodates your typical shared hosting accounts and then a number of other virtual servers which you would sell on to high end consumers, like businesses. Of course you could always keep asking your provider to upgrade your dedicated server as demand for your hosting grows, or you can do the next best thing which is to have your own server a bit closer to home.
If things are really going well for you, it may be time to bring everything in house! That does not mean filling your bedroom with servers, but rather open a small office and run your own servers to accommodate your growing hosting business! This entails much of the same sort of things you would have done in the previous method mentioned about having a dedicated server at your hosting company of choice. You simply set up your servers, split them up using virtualization (if you wanted to) and setting up all the accounts for your customers.
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