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                   The options most usually made available to 
                  resellers include "volume discount" reselling, discount per 
                  domain, affiliate and private label reselling. Learn more 
                  about each.  
                  An excellent higher-tier Web host truly values 
                  its relationships with resellers. Through such relationships, 
                  a Web hosting firm enhances the market reach of its product 
                  and services offerings through the reseller's specific market 
                  segments. A higher-tier Web host will thus offer a myriad of 
                  specifically tailored services to enhance the reseller's 
                  service offering. By providing a wide range of options, a 
                  reseller's business can scale along with its customer base. 
                  The options, or resale models most usually made available to 
                  resellers include "volume discount" reselling, discount per 
                  domain, affiliate and private label reselling.  
                  The volume discount approach provides 
                  increased revenue per domain as the reseller increases the 
                  number of accounts within their hosting portfolio. This model 
                  is extremely cost-effective for larger resellers, since the 
                  cost per account declines as the volume of accounts increases. 
                  The major disadvantages of this model however are that 
                  resellers are usually directly identified as resellers, since 
                  the infrastructure and brand identity throughout the entire 
                  Web hosting service is usually identified with the higher-tier 
                  hosting provider. The model also is not very advantageous to 
                  newer and smaller reseller operations which have just 
                  started-up, since reselling under this model is much more 
                  expensive if the reseller's customer base is small.  
                  The more advantageous reselling model for the 
                  start-up reseller operation is therefore the discount per 
                  domain model. Under this approach, higher-tier Web hosting 
                  firms offer discounts to the reseller per account purchase. 
                  Most start-up resellers first elect to purchase this type of 
                  service because i) it is the hosting option with the least 
                  expensive cost of entry and ii) the option provides 
                  substantial savings as the reseller's customer base grows. The 
                  most advantageous discounts offered usually range from 15 to 
                  30 per cent of the original account's price. With the reseller 
                  able to set the retail price for its consumers, profitability 
                  can accrue very quickly via this resale model.  
                  The other popular resale option is affiliate 
                  reselling. Under this model, resellers are offered a simple, 
                  uncomplicated payment structure that pays commissions on all 
                  referrals for Web hosting services and hosting accounts that 
                  recur monthly. This option is extremely popular with smaller 
                  Web designers, developers and system integrators, since it 
                  allows them to collect an up front fee for placing their 
                  client's hosting services at a particular higher-tier Web 
                  hosting firm. By utilizing this option, system integrators 
                  need not spend thousands of dollars to offer their clients 
                  hosting infrastructure that is constructed in-house. In wide 
                  contrast, integrators can collect a fee while relocating the 
                  rather involved responsibility of hosting onto a firm that 
                  makes hosting its core competency.  
                  While this resale approach will satisfy most 
                  small system integrators, it would not likely satisfy a 
                  value-added reseller (VAR). A VAR is a vertical, 
                  market-centric, solution provider who integrates specific 
                  products into its own offering as part of a complete customer 
                  solution. Because VARs are focused upon providing transparent 
                  and integrated products and services, they usually select 
                  private label hosting solutions. Private label hosting allows 
                  resellers to utilize the services of an outsourced, 
                  higher-tier service provider while reaping the benefits of a 
                  fully customized look and feel. Private label solutions are 
                  considered the most complex since most offer a high level of 
                  customization and automation. For this reason, private label 
                  solutions have the most expensive cost of entry, and are used 
                  by the largest of resellers, who posses hundreds and even 
                  thousands of accounts.
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