A dedicated hosting reseller is a company that leases dedicated servers every month to high volume websites that cannot be adequately served by cheaper shared hosting and virtual private server products. Generally, websites that have become very successful often run into various limits set by cheaper hosting products. That is when it is necessary to run a website on a computer server without sharing it with anyone else. The reseller provides add-on services that cannot be gotten from the hosting provider. If the reseller did not provide any add-on service or benefits to customers, the customer can probably get a better deal by going directly to the hosting provider.
There are many ways that a server reseller can benefit customers. For example, the reseller can help customers architect their system and application in order to maximize performance. High level work like this is well suited for a reseller since they can provide excellent value in terms of extra services for the customer. There are many different high level services that resellers can provide. Some of them may work in different niches such as social networking, SEO, web design, religious organizations, e-commerce, and much more. The point is that a reseller provides services beyond what a hosting provider could ever offer.
A dedicated hosting reseller has some responsibilities as well. For instance, the hosting reseller is the company that has to handle all of the DMCA, spam, and other abuse complaints. It is not a good idea for either the reseller or its customers to ignore them. That could lead to actions from the hosting provider resulting in disconnection from the Internet. The dedicated server reseller also needs to handle the billing and accounting. By extension of this, the reseller is also responsible for non-payment risk of customers. The hosting provider needs to be paid regardless of whether or not the underlying customers have paid. If the hosting charges are not paid in full, the hosting provider may choose the disconnect all of the services provided by the reseller, thus putting him out of business. That is why there are a lot of important duties and responsibilities for the reseller to assume. Selling high priced dedicated hosting products for lots of money to get big profits is not an easy business.
A reseller of dedicated web server hosting can make a lot of money while serving customers well with specialized services that are hard to find. That is why some potential dedicated server customers sometimes go with a reseller instead of going directly to the hosting provider.