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?
Not really. Once you start shopping around for web hosting services, they have several different options to choose from. One of the first big decisions to make is if you want shared or reseller web hosting. But what exactly is 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.
The free web hosting is not the right option if you are running your business on your website. Since they don’t charge you anything so you cant expect to get their support when some problem occurs. If their site goes down, your business goes down as well because you cant be sure when their site will become all right. You can’t rely on them but if you go for a paid shared web host then this problem is solved. The amount you have to pay them is decided by the size of your website and the expected traffic to that site. They will make sure that you get their support 24/7 throughout the year if you face any technical problem. You can use the services of a web hosting company Hotgator and use one of the three packages (varying from $4.95 to $12.95) offered by them. Don’t forget that you will have to buy another shared web hosting plan and therefore spending double amount if you decide you set up another website.
Reseller web hosting has advantages like flexibility and economies of scales. It is better for you if you have a fast growing business or if you are running multiple businesses. With shared web hosting you will have to keep adding the cost with each addition of a website. But with reseller web hosting you have to pay once for all the space rented to you. You can divide this space to set up lots of websites and can even rent the left over space to other individuals or small businesses. It is also possible to relocate the resources of your website when it starts growing. With right approach, you will find that reseller web hosting will actually be cheaper than using shared web hosting on a large scale.
Reseller web hosting also has some drawbacks. It is more expensive. The Hostgator shared web hosting is available between $5 and $15 per month but for their reseller packages, you will have to spend around $25 to $100 per month as per the size and traffic or your website. You can do make up these costs if you sell the leftover space to others but you cant be too sure of getting a customer for that. It is not necessary that you will find a suitable customer. Even if you don’t use the entire space, you will have to pay for it too.
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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