Intermediaries or middlemen exist in every business; they act as liaisons between the manufacturer or service provider and the final customer. In most cases, they might not even own many assets that they handle. Middlemen make a profit in the transaction.

The Internet has the potential to eliminate intermediation by offering services directly to the customer; at the same time, it has spawned new types of intermediation services. Web hosting is one such service that has given rise to intermediaries called resellers. Resellers are third parties who buy space from web hosting companies and then resell the space to individuals and small and medium enterprises for a profit.

Generally, large web hosting companies sell multiple accounts. The buyers of multiple accounts may then sell the unutilized accounts to others. The resellers are usually website developers. Since the resellers operate from a parent host, it would be very difficult to identify a reseller. The reseller buys space at a discount and then marks it up, which makes a win-win situation for both reseller and the buyer.

In order to be a reseller, one needs to have multiple domains. As a third party, it is essential that, in addition to the domain account, the reseller needs to have full control over the administrative panel of the clients websites. It enables the reseller to hide his or her identity as a reseller. The terms and conditions should be executed by the reseller and the buyer.

The advantages of dealing with a reseller is that they provide extra services like web and graphic design, search engine promotion, and managed services. As the resellers are familiar with the configurations, they may be able to provide more support for the client.

The reseller is ideally suited for those businesses operating from homes or individuals because the reseller has fewer clients than the parent; as such, the reseller may be able to provide better services. The businesses must take care to know the features available, and to be familiar with the maintenance and technical support before signing the terms and conditions. For instance, if the reseller doesnt pay the fees to the parent, the websites will be shut down.