This is a unique way of web hosting which involves grant of a special account called “reseller” web hosting account or master reseller web hosting account to some individuals or companies (also called multiple subaccounts). The reseller account holder pays for the monthly charges of the master account and then sublets the web hosting to smaller account which then provides different hosting services at their end. The master account holder is responsible for the distribution of resources like bandwidth and hard drive space among sub accounts including their account management. In short the reseller buy the bandwidth and disk space as wholesale and then further sells it to customers. The master reseller can be a dedicated server or shared server (mostly shared ones).
The reseller hosting is also called cheap web hosting due to the reason that the master reseller usually provides the resources at much reduced rates. Another reason for the low cost is that it does not require a huge support infrastructure in terms of technical manpower and hardware, and all it need is a data manger or supervisor for supervising the smooth operation. The major technical issues experience by the sub account holders are always referred to the company providing the reseller hosting services. The customers or client accounts are managed through the internet via special control panels, called point and click. This cheap hosting is generally used for blogging sites and small business / individual sites. The web sites requiring high processing and high bandwidth are not suitable for this kind of hosting. The small/medium website are easily and cheaply managed by the master reseller through a special technique called name-based virtual hosting , as it uses one IP address for different domains, and this also allows the reseller web hosting service providers to create multiple website without paying extra money for IP addresses and servers.
The basic components of a reseller hosting include web server and data base, mail servers, DNS servers for complete zone management and brand-agnostic servers. The data base server provides the basic data storage facility through structured method and can also provide multiple databases for more than one user. The mail servers provide mail sending and receiving facility for the reseller clients (typically SMTP is used with software like Qmail, Postfix and Exim etc. The DNS servers are used for the provisioning of name server and domain name server, this server also allows the creation of sub domains. The brand-agnostic servers are used for the provisioning of company brand names, in simple word these are used to hide the information of original web hosting services provider.
A reseller hosting or cheap hosting provider has control over customer domains, FTP servers, mail accounts and databases. The cheap web hosting also ensures the data backup facility for customers, up to a certain level. The master server also acts like a dedicated server to the customers but without extra cost being paid by these. The factors affecting the cheap hosting are bandwidth, disk space, programming tools, control panel layout, continuous support, secure environment and granted uptime.