At first glance, shared web hosting and reseller web hosting look a lot alike. In both cases, a number of websites are hosted on a shared server. The difference is, if you rent out a “chunk” of a server that you don’t use, you can sometimes resell those resources to others and have your own shared web hosting business on the side.

In reseller web hosting, the host controls and maintains the server(s) and is responsible for updating software and performing backups and other server maintenance. If you purchase shared server space with the intention of reselling it, you need to know that you have access to your host, in case one of your customers experiences problems.

Reseller web hosting is not for everyone. Most small businesses that have shared web hosting have no need or desire for a reseller account. However, reseller accounts can also be used by those who have a number of websites and need a cheaper solution than multiple shared sites. In effect, these users will buy a reseller account, and “resell” space to themselves at less than what it would cost to set up a number of individual accounts.

Some web developers use reseller hosting as a side business. Sometimes a company with a relatively small, simple website may want to sell some of the leftover disk space and bandwidth to recoup some of their business costs. And with your host being in the data center with the servers, you won’t be the one having to restart servers or put out fires at the data center.

Reseller hosting accounts with generous bandwidth and disk space can be found for only around $25 to $50 per month. This can save you a lot of money if you need room for multiple sites. It can also be useful if you only use a little bit of the disk space and bandwidth and want to sell the rest to another part to generate some side income.

If someday you hope to own your own web hosting business, then reseller hosting can be a good first step in entering the business. It is inexpensive, and allows you to control your clients, creating (and terminating) accounts while someone else takes care of the technical details of server maintenance. This gives you the luxury of concentrating on learning the business and generating some steady income.

Perhaps the biggest mistake people make when it comes to starting a reseller business is trying to do too much in a short period of time. If you end up promising a bunch of features you don’t deliver, your credibility will suffer greatly. After all, there are many, many web hosting providers out there ready to pounce on those customers who were dissatisfied elsewhere.

Some potential customers may require some convincing since you are basically positioning yourself as a middle man. They will need to know if they experience problems with their website they can contact you day or night and be confident you will be in touch with the data center as soon as possible to explain the problem and get a solution.

When done properly, reseller web hosting can be a good side business for those running small business websites. If you’re willing to be on-call for your customers and if you’re willing to go to the mat with the data center if necessary on behalf of your customers, then reseller web hosting can be a good way to generate a little extra income while your primary web business grows.