What is a Reseller?

A reseller is a business or a company, or sometimes an individual or business owner who purchases products or services at a lower cost and intends to resell them at a higher price in order to profit.
Resellers are known to conduct operations or do their business via the Internet. They sell the goods or the services online through sites on the Web.

What is a Web Reseller?

In the web hosting area, a reseller purchases bulk hosting from a supplier or an Internet Service Provider (ISP). The large amount of hosting space is then resold to a number of clients or customers. The reseller’s hosting is managed via a Virtual Private Server or VPS, which enables them, through a control panel, to administer or provide databases, passwords, bandwidths and other services for the client.
Tips to Help You as You Start Your Own Reseller Business
Becoming a reseller or starting a reseller business can be a lot simpler and easier and cheaper than you think. Reseller business can be run entirely via the internet even without out pre-purchasing stock or product. This means you can have your reseller business in a breeze with little or no capital investment.
If you have the interest and the motivation to start your own reseller business, there are a handful of things you need to know first. It’s extremely essential that you fully understand how the reseller industry works, as well as finding and knowing the right reseller opportunity for you.

 The Right Fit

  •  When you have already decided you are going to become a reseller, you need to start by finding the right fit, meaning, finding the right product or service to resell. You do not have to be a product expert but you must be able to feel and demonstrate the emotional investment, motivation and determination to make your business successful.
  •  To have an assessment the potential success of your chosen or selected product and/or service, you have to research and understand the market landscape, which includes competition, price points and demand.

 The Right Opportunity

  •  If you want to supplement your existing services or products with a resale partnership or relationship, consider a resale opportunity with a known brand manufacturer.
  •  You not only have to know or find the right product or service to resell, you also have to find and approach the source of that product or service.

 Be careful with scams

  •  Be careful of business opportunity scams with their enticing work-at-home schemes, especially for those home-based business owners.

 Have a Business Plan

  •  As you begin to research about reseller business opportunities, also start to think about making a business plan to formalize your ambition. Having a business plan enables you to think long and hard about marketing strategies and opportunities, helps you build a clear vision of your goals, and most importantly gives you encouragement on how to reach them. This will show your potential affiliates or partners, lending institutions, and wholesalers that you are serious with your venture.


  •  Most reseller opportunities begin by applying online. Upon application, be sure that your business profile includes information like how big is your company, number of employees you have, how long you have been in business, selling channels, web presence, region or location of service coverage, online merchant tools, and others. Through it, the manufacturer will determine if you are a good fit for their company or program.

 Read the Terms and Conditions

  •  Before signing any reseller agreement or contract, make sure you are aware of your rights. Read the contract terms and conditions.

 Becoming the Business Owner

  •  Be reminded that when you become a reseller, you are also a business owner. Upon deciding to start your reseller business, it involves the fundamentals of starting a business. With that, it is important that you secure a business license and other permits needed or required.


  •  Resellers are compensated through a percentage or buy rate model. The percentage model involves the agreement wherein the reseller sells the product or service at a retail price set by the supplier. Compensation is then given as a fixed percentage off each product sold. On the other hand, the buy rate model involves the reseller buying from the supplier a wholesale price and reselling on a retail market rate. The reseller’s net revenue will be the difference between the two.

Starting a New Reseller Business
If you are done researching and understanding the reseller business, and are confident to start your own, you need to incorporate a company, and this can be done through the internet. Incorporating a company is easy and quick, and also inexpensive. And once you have incorporated your reseller business, you will need a domain and a website. As soon as everything is tested and working, it’s time for you have your reseller business selling.

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