This is a very old article that I do not recommend you reading. Our Web Hosting 101 and How to Choose Guide are actively updated and maintained – you should read them instead.
Nowadays, people want to have their own website for a variety of reasons.
Others want it to get the professional feel of having their own domain name while other want it simply because they want to be able to customize their website as much as they want. If you want to have your own website, you should realize that there are some things you have to consider. First, you will have to get a web host or host your own website; you will have to spend either way.
Likewise, you should choose which type of hosting you need. Reseller and shared hosting are just two of the web hosting options. These two actually differ greatly. You should find out which would be more beneficial for you.
Thus, you must learn about them individually for you to be really able to compare them.
About Shared Hosting
Also known as derive host or virtual-hosting, shared hosting refers to the process wherein the web host accommodates the files for many different websites in one server. This system allows the websites to keep a strong and constant internet connection and is cheaper because you do not have to run your own server. The web host runs the server for you and they are in charge of all processes and maintenance such as server software installation, server management, updates for security, technical support, and others. Consequently, it is inarguably the most practical option in web hosting since the cost of service is divided and shared by many people.
Since the service is shared by different users, it is essential for it to have a system administration to keep things running smoothly. This is especially beneficial to those who do not want to go about the hassle of maintenance but may be a disadvantage to others who want to have more control of their site and server. Thus, this type of hosting is not apt for those who need massive software development that is not supported by the service provider.
Most applications found in a standard server functions well with shared hosting but it has certain limits in usage. Nonetheless, web hosts usually provide vast reliability features to support their clients.
About Reseller Hosting
Reseller hosting involves third parties. If you are the reseller, you will own an account and be able to utilize the bandwidth and hard drive space allotted to you to host other websites. The system starts when the reseller buys the services of the host wholesale and then sells it to clients for profit. There are actually four types of reseller.
The first one is an agent. In this case the reseller advertises the services of a web hosting company and clients buy directly from the company. The reseller gets his or her share of profit if the customer mentions that he or she was referred by the reseller.
The second type of reseller is a marketer. It is the same as being an agent but in this case, the customers buy directly from the reseller and do all other businesses with the web hosting company.
The third type is the full reseller in which he or she acts as a web hosting company. In this case, the reseller handles the sales and support but the fact is he or she is just “re-branding” the service of the real service provider.
Finally, the fourth type is when the reseller is literally a reseller. He or she buys a big piece of web space and bandwidth, divides it to smaller pieces and re-sells it to different individuals. Similarly, the reseller is responsible for client support in this case but is assisted by the web host.
Shared Hosting vs. Reseller Hosting
Based on the information aforementioned, we can conclude that there is a great difference between reseller and shared hosting. They are not actually rivals because they are for different purposes.
Generally speaking, shared hosting is apt for people with a small or medium-sized company. If you choose it, it will give your site a sturdy internet connection for a cheap price and you will be able to make the most out of the support the service provider offers. However, you will not have administrative control to your website. This may not be an issue to most people but may be annoying for the tech-savvy individuals.
Likewise, since you are sharing the server with other websites, a problem with one website may affect yours. Thus, if you have a website teeming with activities that would consume most of the server’s resources, you should consider other choices. Moreover, if you cannot juggle the risk of being affected by other site’s problems, you should consider getting a dedicated server or a virtual private server which is, of course, more costly.
On the other hand, reseller hosting is more of a business opportunity. You should consider it if you are planning to start your web hosting company. By starting your own web hosting company, you will have a huge market, recurring revenue, and even as a small company you can compete with larger ones.