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As demand for web sites has exploded in recent years, so has demand for web hosting services. A new form of web hosting, called reseller web hosting, is now being offered to meet the added demand. In order to understand the role of reseller web hosting, we must first understand the role and the function of web hosting services.

Web hosting services provide space for the files that comprise websites on networked computers referred to as servers. Web hosting services also provide the connection and the apparatus for serving those files over the Internet. Some web hosting companies, called Internet Service Providers, further provide the end user's Internet connection.

The concept of having a connection to the internet at home gives rise to the ability for one to personally take a look at a number of websites at any one time. However, this usage is usually incapable of doing so for thousands or millions of other people at the same time. The software for home computers does not really allow for such usage. Therefore, for the average user who is looking to develop and publish a website, they must use web hosting services.

Increasing demand for web hosting from a small group of providers means that service resellers can make a good profit. Reseller web hosting takes place when a person buys a chunk of hard drive space and then rents it out to others, just like subletting or renting out an apartment. Renters receive not only hard drive space, but also connection bandwidth.

The reseller gets to buy the space and service at a whole sale prices and then he resells them to numerous parties at retail prices. Those businesses that already give an internet service of some type are actually the main candidates for earning additional profit through reseller web hosting. For instance, a graphic design company which is already leasing quite a lot of space for client files may find reselling web hosting service a natural extension of their business model.

Technical support and maintenance are still taken care of by a primary, specialized web hosting outfit. Thus, the reseller does not have to buy specialized equipment or have any specialized technical skills or knowledge. The reseller may just manage accounts via software given by the primary web hosting firm.