Reseller hosting occurs when one person buys a bulk plan from a company and then divides that plan to resell to a lot of other people. The server itself is run by the actual reseller company, but the web host often claims that the server is theirs. A lot of people would wonder why in the world they needed to go through a reseller.

Why not just buy from the main company and cut out the middleman?

The reason is that these big companies have a lot of bandwidth for sale, and the best way to buy it is in big chunks. The catch is that most small businesses and others who want to own a website don’t need that much space. It’s much easier – and much cheaper -for them to buy a smaller amount of bandwidth from a reseller than it is for them to buy a huge chunk of very expensive bandwidth and then not use most of it. In general, the reseller hosting trend is the way to go for most people.