Web Hosting Compared - Shared Vs Reseller Hosting

So, you want to set up a website. Your first decisionsmall business where your website needs to be
is to chose between buying a web server and all theavailable 24/7/365 and you need quick, reliable
supporting equipment along with a network techniciansupport for any and technical problems, then you'll
to run it for you, or to find a company whosedefinitely want to go with a paid host. The costs
business is to run websites and pay them a monthlyvary depending on how big your web site is, and
fee to host your website on their equipment. Thishow much web traffic you anticipate. The web
question, at least is a no-brainer: unless you are a bighosting company Hostgator, for example, offers
company going online for the first time (almostthree shared hosting packages varying between
unheard of these days), you can't afford the capital$4.95 and $12.95 a month. Finally, if you want to set
investment to set up your own web serverup another website, you have to buy another shared
infrastructure. So you chose to rent server spaceweb hosting plan, and your monthly expenses have
from a web hosting company. Simple, right?just doubled.
Not really. Once you start shopping around for webThe main advantages of reseller hosting is flexibility
hosting services, they have several different optionsand economies of scale. If you are running a
to choose from. One of the first big decisions tofast-growing company, or are an entrepreneur
make is if you want shared or reseller web hosting.running multiple businesses, then the cost of multiple
But what exactly is the difference?shared accounts every month can quickly add up.
In a nutshell, the difference is scale. In shared hosting,With reseller web hosting, you can set up as many
you rent server space for a single website with awebsites as you need, and reallocate resources
single domain name. You would pay a separateamong them as they grow over time. Of course, you
monthly fee for each additional website you set up.can rent out or resell and left over space to other
With reseller hosting, you rent a large amount ofindividuals or small businesses to run their websites. If
server space, divide it up among as many websitesyou juggle the finances well, reseller can be much
as you need, and then have the option to resell thecheap on a large scale than shared web hosting.
left over server space to other people to set upThere are, however, two main drawbacks to reseller
websites-essentially making you a hostinghosting. The first is expense. While Hostgator [ offers
subcontractor. So which option should you choose?shared web hosting for prices between $5 and $13 a
There are advantages and disadvantages to both,month, their reseller packages vary between $25 and
and we'll examine each below.$100 a month, depending on size and traffic. Sure,
The main advantages of shared web hosting is that itsome of this expense could be offset by reselling
is simple, cheap, and efficient on a small scale. For ayour unused web space to others, but that is never
personal or small business website, this is all you willa sure thing. What if you have trouble finding
need. You get one website and one domain name,customers? There is a good chance that in any given
often with the option to set up sub-domains for themonth, you will have some hosting space you are not
different parts of your website. First, you are notusing, but still paying for.
only renting space on their web server equipment,The second problem is that, as a hosting
you were renting their support. It is the responsibilitysubcontractor, you are now responsible for
of your hosting provider to keep your websitemaintaining support to all the people you resold web
constantly accessible and running smoothly, andhosting space to-except that you actually have very
provide you with any technical support you mightlittle power over such technical problems. Although
need-making this one less issue, you have to worryyou often have some limited administrative
about when running your own business. Second,functionality, all you can do for serious technical
shared web hosting is five to twenty times cheaperproblems like an internet outage is pass the
than reseller hosting, with prices ranging as low as $5information on to your web hosting provider. Once
per month, or even free.your customers realize you are essentially just a
There are drawbacks to free hosting sites, however.near-powerless middleman, they may lose confidence
The main one is reliability. As you are not a payingin you and switch to a different web hosting
customer, if the site goes down, all you can do isprovider. It doesn't take much to ruin your brand
wait. You have no contract guaranteeing you a setname, and once that happens, your monthly reseller
response time for internet outages. Free hosting isweb hosting costs will rise and you lose customers to
great for a personal website, but if you're running aoffset those monthly costs.