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Is Your Web Host A Secret Reseller?
Web hosting resellers have been around for almost as long as the Web hosting business itself. In the beginning, Web hosting companies who had made large capital investments in servers and infrastructure began recruiting third-party companies as a type of commissioned sales force to help them recoup their investment faster. These third-party companies were given incentives to “resell” hosting services with volume discounts, advanced technical support and private labeling that made the primary host completely transparent to the reseller’s customers. In general, the more hosting customers that a reseller can deliver for the primary host, the greater the discount the reseller receives and the more money they can make marking up the hosting service to end users. Interestingly enough, many of today’s large primary hosting companies actually began as resellers and later bought their own servers and added support staff by reinvesting their profits.
Today, there are thousands of resellers operating under their own brand names who would prefer that their hosting customers never know they are really reselling another company’s hosting services. Should you be concerned with whether your hosting company is a reseller? The answer is yes and no. Resellers can sometimes offer you more attentive and personalized support because they don’t have as many customers to deal with as the primary hosting company they are reselling for. Resellers also can offer value-added benefits to their customers by including other services in their hosting packages such as search engine promotion, Web design, database management and other Web-based applications. And even though resellers are acting as middlemen, their hosting packages may be priced as low as, or even lower, than the primary host’s retail hosting packages depending on the volume discount they receive and the margin they need.
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