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Home Business Online Business Shared vs. Reseller Website Hosting
Shared vs. Reseller Website Hosting PDF Print E-mail
Written by Gray Rollins   
Monday, 12 January 2009 10:17
What is the first thing that you need to consider when you plan to set up a website? You actually have two options: to buy a web server and the other equipments required for its support and even employing a technician to help you run it OR look for a company that is in the business of running websites for others in return of a monthly fees as they will use their equipments for hosting your website. Even a small child can tell what you should choose between the two to avoid investing huge amount on the set up required for your personal website server infrastructure (unless you are a big company who can afford such expenses). This leaves you with an option to go for renting a server space from a web hosting company. How simple!
by GrayRollins


What is the first thing that you need to consider when you plan to set up a website? You actually have two options: to buy a web server and the other equipments required for its support and even employing a technician to help you run it OR look for a company that is in the business of running websites for others in return of a monthly fees as they will use their equipments for hosting your website. Even a small child can tell what you should choose between the two to avoid investing huge amount on the set up required for your personal website server infrastructure (unless you are a big company who can afford such expenses). This leaves you with an option to go for renting a server space from a web hosting company. How simple!

When you start looking for web hosting services, the number of options available will surprise you. The very first thing that you have to decide is to choose between the shared and the reseller web hosting. Do you know the difference?

The main difference between the two is their scale. A shared web hosting requires you to pay for server space for only website with one domain name. If you want to set up more than one website, you will have to pay additional fee for each website. A reseller web hosting requires you to pay for a server space that can be used for more than one website. You can divide the space to host all your websites and if some space is left, you can even sell it to someone else and become a web-hosting subcontractor. Both options have plus and minus points. Lets discuss them to help you decide which one you should choose.

The simplicity, efficiency and the low cost are the three main features of shared web hosting. If you require it for personal use or for running a small business website then this is perfect for you. Along with one website and one domain name, you will generally be allowed to set up sub domains for different parts of that website. You pay them the rent for the space on their web server equipment and you get their support as well. In a way they become responsible for making sure that your website is not only accessible all the time but also that it is running without any problems. They will be ready with their technical support whenever you require it. This takes care of a very important aspect for any businessperson. This option also requires less expenditure (5 -20 times less than reseller web hosting) as you may have to spend around $5 or even free.

Now some disadvantages of the free shared web-hosting sites. It is not very reliable. Imagine the site going down for some reason, you can't do anything but wait. Since you have not paid so there is no guarantee that your problem will be solved on priority. This kind of service is all right for a personal website but for someone running a business, it is not a safe option. You need a reliable support system to make sure your website is accessible 24/7/365 and solve all your technical problems without any delay. This makes paid shared web host a better choice. You will have to pay the amount depending on the size of your website as well as the traffic expected towards it. Hostgator is one such web hosting company that gives you an option of selecting one of the three packages varying from $4.95 to $12.95 per month. Another problem is that if you decide to set up another website, your expenditure will double as you will have to buy another shared web hosting plan.

Reseller web hosting is more flexible and has a major advantage of economies of scale. If your business is expanding or you are running multiple businesses then you will have you pay a lot for renting multiple shared web hosting every month. But if you choose reseller web hosting, you will be able to set up as many websites as you require.. Even after they grow, you can relocate the resources among them. You can also utilise the left over space by renting it to other small businesses or individuals. With proper planning, you will realize that the reseller web hosting will prove to be cheaper that shred web hosting on a large scale.

There are, however, two main drawbacks to reseller web hosting. The first is expense. While Hostgator offers shared web hosting for prices between $5 and $13 a month, their reseller packages vary between $25 and $100 a month, depending on size and traffic. Sure, some of this expense could be offset by reselling your unused web space to others, but that is never a sure thing. What if you have trouble finding customers? There is a good chance that in any given month, you will have some hosting space you are not using, but still paying for.

Let's discuss the second problem with reseller web hosting. As a subcontractor, you will be asked to provide support to your customers too. If the people whom you have sold your unused space face some technical problem, what will you do? You can solve their administrative problems to a certain extent but you will be helpless in other problems. Only your web-hosting provider can help you with solving technical problems like Internet outage etc. If this is the case your customers will not rely on you and when they are not satisfied by your services, they might shift to other service providers. This can make things difficult for you as you may lose your reputation and also your clients. This will increase your monthly expenditure and upset your budget too.

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