Shared vs. Reseller Website Hosting

So, you want to set up a website. Your first decision is to chose between buying a web server and all the supporting equipment along with a network technician to run it for you, or to find a company whose business is to run websites and pay them a monthly fee to host your website on their equipment. This question, at least is a no-brainer: unless you are a big company going online for the first time (almost unheard of these days), you can't afford the capital investment to set up your own web server infrastructure. So you chose to rent server space from a web hosting company. Simple, right?

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?

Well to say it simply, it is the scale that makes them different. For a shared web hosting, a server space is rented for one website with one domain name. You have to pay separately for all other websites that you may need to set up. For reseller web hosting, a big web hosting server space is rented that is later divided into smaller spaces to set up more websites. This also makes it possible for the user to sell the non-required space to others for setting their websites. This way you become a website hosting subcontractor. If you are not sure which is the right one for you, here are some advantages and disadvantages of both.

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.

The main advantages of reseller web hosting is flexibility and economies of scale. If you are running a fast-growing company, or are an entrepreneur running multiple businesses, then the cost of multiple shared web hosting every month can quickly add up. With reseller web hosting, you can set up as many websites as you need, and reallocate resources among them as they grow over time. Of course, you can rent out or resell and left over space to other individuals or small businesses to run their websites. If you juggle the finances well, reseller web hosting can be much cheap on a large scale than shared web hosting.

The main disadvantage of reseller web hosting is its cost. You can get the Hostgator shared web hosting package at the cost of $5 to $13 per month but the reseller web hosting package will cost you $25 to $100 for each month depending on your website's size and traffic. You can reduce this expenditure if you sell the unused space to someone else but then there is no surety that you fill find someone to but it. You may not find a customer when you want one. It is possible that in some months you will have to pay for all the space even when you don't use all of it.

Another problem is that when you sell the free space to someone, you have to provide him support whenever there is a problem. Since you yourself have no control over such technical problems, it becomes a major problem. You can provide some kind of administrative help but problems like an Internet outage will not get solved by you without the help of your web-hosting provider. When you are unable to help them, you will end up losing not only the confidence of your customers but the customers too. They will shift to other web-hosting provider and you will ruin your name in the business. This will have adverse effect on the financial conditions of your business. - 18098