Definition
Reseller hosting is a wholesale hosting plan bought from one host and split into separate branded accounts sold on to your own customers. You purchase a block of storage, bandwidth and cPanel account slots, then use WHM to create, suspend and manage each customer's cPanel account independently, often under white-label nameservers so your brand is the only one visible. Entry-level plans typically start around USD 15 to USD 30 a month for 20-50 accounts worth of resources on shared infrastructure; VPS-based reseller plans cost more but avoid noisy-neighbour effects. Agencies, freelancers and small hosting startups use it to consolidate many client sites under one bill, price hosting as part of a service package, and avoid juggling separate accounts per client. The trade-off: you become first-line support for every account you sell, cPanel's per-account licensing adds cost as you scale, and your reputation depends entirely on the upstream host's uptime and backup practices.
How it works
A reseller plan looks like one big shared or VPS account from the host's side, but you partition it through WHM into many smaller cPanel accounts for your customers. Some resellers go further and white-label everything, so customers never see the upstream provider.
Why it matters
For an agency, reseller hosting turns hosting from a customer expense into agency revenue and reduces fragmentation across many separate provider accounts. The trade is that you become the first line of support, and you depend on the upstream host's reliability for your reputation.