Reseller hosting offers fewer resources than a dedicated server, and thus may exceed resource constraints faster than with a dedicated server.

A reseller hosting account can only hold so many clients before the space and bandwidth are greater than any reseller package the hosting company can provide, and it becomes more economically feasible to upgrade to a dedicated server.

Upgrading the reseller package requires moving clients from the reseller account to the dedicated server, which could result in downtime. In addition to the moving and expansion issues, most reseller hosting accounts offer little in terms of customization.

Reseller accounts are usually set in what software is installed on the box, and the versions available. An example would be a client asking for PHP 5, when the version that’s installed on the server hosting the reseller account is PHP 4,means it decreased.