Do you know of the pitfalls of a reseller who is pretending not to be a reseller? or is it accepted in the industry to use a reseller for hosting if the services look right?

It is not wrong to be a reseller, you are just believing in someone’s product and sell them to your clients. In future, there will be a lot of resellers and you will find hard for hosting company but instead many hosting reseller company.

I don’t find any disadvantages with a reseller hosting package.
Thats true, you need to concentrate on your sales, marketing and seo part and need to make the brand name among millions of providers.
You should look for a reliable reseller hosting provider who can offer you more features like private nameservers, free domain reseller account to register domains for accounts under your reseller.

If you are a reseller of a reseller you will not make a lot of profit. Try to find a business that is the main hosting company or the data center itself like cpwebhosting.net and purchase a Reseller web hosting plan from that.That way you can make more money as a reseller.
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I do not think there is anything wrong with being a hosting reseller. There are even few advantages like instead of managing the servers you can focus on marketing your site and on supporting your clients.