If you have the money and the experience then you can go as far as buying all the server equipment required, in which case you will also be responsible for all the server maintenance costs.
The other option could be leasing a server as this will be cheaper than buying the server, but here as well you are responsible for all the maintenance and running costs of the server.
So Reseller Hosting is a good profitable business.What do you say guys?
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wipr
Wipro Dedicated Servers

Resellers are nothing but entrepreneurs acting as middlemen, offering you hosting services by leasing time and space from another Web host’s server rather than owning their own. Most of the times, the quality of services offered by resellers are so good that consumers do not even have the idea that they are dealing with resellers who do not have servers of their own. Resellers, since they can pick and choose their servers, are basically in a position to provide the customers with the best of services.which means you can double or even triple sell your quota and make unlimited wealth.

And mind well, this income is residual income. It will keep coming to you month after month, year after year. You do the work once. and get paid for it over and over. All you are doing is buying space from a major web hosting company and becoming a reseller host. Your efforts are focused towards selling hosting space and the rest is handled by your web host. Some of them even handle customer service to your customers for a nominal fee. which makes it even easier for you.
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Tosh
Dedicated Hosting

Yes its true.Its a happy wealth creation process. Even if this is not enough. you can earn additional residual incomes by adding recruiting more resellers through you. By doing this you will earn regular commissions on their monthly sales. isn’t this smart business. The profit margins in the business of reseller hosting is quite good and you can start on this exciting business venture even if you do not have the required expertise and access to funds for setting up the required infrastructure. Strange as it might sound, there are also times where a reseller can also be more scalable than a typical hosting firm. A true Web host is limited by its hardware; if a client suddenly requires an upgrade the host is not prepared for, the only way the host will be able to satisfy the customer is by upgrading its hardware – expensive and time consuming for both sides. The reseller host, however, can simply choose to locate with a different Web host that will better suit the customer’s needs.

Reseller hosting is no different either, a reseller buys a Web hosting package from a hosting company and tries to sell it independently. The profit for the reseller lies in either the discount or in the commission s/he gets from selling an account.

For example: The reseller might purchase a package whose features are valued at $100 for $90. So, the reseller stands to make a $10 profit on selling the package to customers. Normally as the customers increase, so does the profit margin for the reseller.

Or, you can get some money by earning commissions from a hosting company. This happens when you refer potential customers to the hosting company. If the customer signs up with the company then you earn a small recurring commission until the customer uses the services.

Most web hosting companies try to outsource their services to resellers as it helps them to extend their business reach without the cost of marketing and sales and also helps them to concentrate on the business side of things.

The best thing about being a reseller is that you do not require a lot of upfront investment.

There is no need to have a lot of technical knowledge. Account management and Internet skills are all that is required. However, it would be really handy if you have some sales and marketing experience so you can interact with your customers better.

The hosting company generally provides and maintains all the hardware and software.

You do not need to hire a lot of IT staff to provide support. Providing basic support and leaving the more technical issues to the parent company support staff can be easily achieved.

So in my opinion it is a very healthy business,specially for the beginners.You just have to concentrate on your website content and forget rest.

Hey guys with every good thing there are some downsides also associated with it. Like Support can sometimes be delayed, as you are dependent on the parent company to handle the technical aspects. If there is a delay from their side then you along with your customer are affected.

Sometimes customers leave you if they find out that you are a reseller and not a real hosting company.

Precaution is better then cure .So if we are cautious we could avoid any kind of disadvantages and difficulties.

Also if you are starting out on a small scale then visiting message boards and posting your services there is a good idea. A lot of potential clients with relatively small hosting needs also frequent message boards and outline their desired services.

Having contests is a great idea for bringing awareness and interest about your services.

Online ad campaigns, signatures, and text links are very helpful techniques.

Once you have gotten a bigger budget then you can go for Google ad words or search engines.