Many web hosting firms offer reseller hosting service. With this type of hosting, the account owners of reseller service rent out portion of their disk space and bandwidth they receive to other end users. In this case, the account owners are just like a hosting service provider to those end users.
For example, someone buys a reseller web hosting package with 1,000 bandwidth and 1,000 MB disk space. He then breaks this into 10 separate accounts with 100 MB bandwidth and 100 MB disk space each and then sells those smaller packages to his customers. In fact, even the large hosting companies also resell hosting. These companies rent space or servers from larger companies in bulk and then sell that hosting to those who want to buy it.
Usually these servers are operated by the reselling company, but all issues of the server are taken care of on behalf of the web host (the reseller’s customer). The web host is free to claim the server as “theirs”, even thuogh they rarely have full access to it. With this reseller hosting, it is also possible for you to have several websites with different IP addresses on a single hosting plan. However, since many of the account holders of reseller hosting are not experienced webmasters but entrepreneurs who are trying up their hosting business, their end users may not have the same level of techncal support that other customers receive from this established web hosting firms.
For sites that do not need as much dedicated resources available for them, then the best choice for them might be using of reseller hosting. And those who require more stability and performance will want to be hosted through a dedicated option.