What is the difference between Reseller Hosting and Shared Hosting?

Web hosting comes in many flavours these days to ensure everyone has a plan that suits their budget. Years ago, web hosting was one of the most expensive components of a website. But now you can get started for as little as $3 a month for the basic plan, going all the way up to several thousands for a custom setup.

In this article, we will talk about the different plans available in the market and their advantages.

A reseller hosting is a setup built to resell hosting to others. When you buy a reseller account, you can divide your quota of space and bandwidth and sell it to others. It is a profit-oriented plan and works best of those who want to create an income stream from it. To facilitate multiple account owners, a reseller hosting plan includes more features and customisations. You can set up individual cpanels for each domain, use private name servers, create a white-label solution and provide individual billing for your customers.

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There are two types of hosting plans: Shared Hosting and Reseller Hosting.

 A shared hosting plan is like renting a locker in a hostel. You get your own bed, but you have to share the room, toilet and even the kitchen with others. It is the cheapest plan offered by most hosting companies. The company could offer you either single domain hosting or multi-domain setup. Typically, you will share the IP address with several other members. A shared hosting plan usually gives each customer only one control panel.

Shared hosting is good for people who are looking to set up a small website with a limited number of visitors.

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Reseller hosting is best suited for people who want to start a business of selling web space. If you are a web designer with multiple clients, it is ideal to get a reseller hosting plan and bill them a monthly fee for hosting, instead of clubbing all costs as a one-year fee. With reseller plan, you can bill them separately for hosting charges. It also allows you to keep your upfront charges lower and make money on a recurring basis instead of a one-off payment.

You can also provide individual IP address and SSL certificates for your clients.

 Reseller hosting is like renting an apartment complex and subletting individual houses to collect rent and make a profit. You set the terms with your tenants, and you pay the owner a rent for use of his premises.

Reseller hosting is best suited for people who want to start a business of selling web space. If you are a web designer with multiple clients, it is ideal to get a reseller hosting plan and bill them a monthly fee for hosting, instead of clubbing all costs as a one-year fee. With reseller plan, you can bill them separately for hosting charges. It also allows you to keep your upfront charges lower and make money on a recurring basis instead of a one-off payment.

You will also have the flexibility of creating your own packages for hosting like silver, bronze and gold, giving you the option to charge lower or higher depending on what your clients need.

In summary, shared hosting is good for single domain owners while reseller hosting is best for business or for web developers.

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