What is Reseller Hosting?

Reseller web hosting is a type of web hosting arrangement. With a normal hosting arrangement, the owner of a site will pay a monthly fee to a web host for the ability to put their site on the web host's servers. With reseller web hosting, a hosting reseller will pay a monthly fee to a web hosting company for the ability to allow a third party to put their site on the web host's servers. There are a couple of reasons why someone might choose reseller web hosting.
First and foremost, a web hosting reseller can make a lot of money, if they do it right. Reseller web hosting allows a reseller to host sites that are owned by a third party. What this means is that the reseller will purchase a hosting plan from a web host, under the agreement that they can then turn around and sell web hosting to other people. This way, the original web host makes money from the reseller, and the reseller makes money from the hosting they sell to various owners.
Secondly, purchasing a reseller package from a good web host is often much easier and cheaper than setting up servers and purchasing or coding site tools for clients to use. Web hosts that offer reseller web hosting usually offer free or inexpensive access to site building tools, multiple e-mail accounts, shopping carts, billing software, and more. A server, software, and other site hosting tools would be prohibitively expensive for many people to purchase and set up, and that isn't taking into account the cost of things like office space, electricity, or support staff. By paying for a reseller package from a web host instead, these people can drastically reduce their operating costs while providing the same level of service. 
Next, regular web hosting packages don't allow for reselling. With most typical web hosting arrangements, the person who is paying for the storage space and bandwidth usage is allowed to do so for their sites. They are granted the ability to have one account, and all of the space, site tools, and other things they will need to maintain that one account. If they want to allow other people to host their sites on that same space, they would all need to use that same account. It's easy to see that this kind of arrangement would end up crowded and confusing before long! Reseller web hosting allows the person paying for the web space to sell chunks of it to as many separate parties as they want, all of which can have their own, unique accounts. 
Reseller web hosting is a unique business opportunity that allows resellers to make money with relatively low operating costs. By choosing good, trustworthy web hosts with competitive rates, sufficient storage space and bandwidth, and a server uptime of at least 99.9%, web hosting resellers can make a good amount of money without having to worry about the trouble and expense of setting up their own servers, software, and other hosting equipment.