The advantage and disadvantage of reseller hosting

Advantages of Reseller Hosting
The first advantage of reseller hosting is the amount of server resources that are available to you. Even if you decide not to resell the hosting service, you can use these server resources to operate your own web sites and save money in the process. However, unlike other web hosting plans, reseller hosting gives you the ability to allocate these server resources to your clients seamlessly. In fact, it even gives you the tools needed to build a web hosting site,create client accounts, designate hosting plans and even bill your customers on a scheduled basis!
You are essentially given everything needed to become a successful web hosting provider. Some reseller hosting plans even give you the ability to rebrand your hosting control panel with custom logos and designs to portray authenticity and professionalism. After you have gathered a reasonable amount of clients you can even sell your hosting business for a very hefty profit. If you are trying to get into the hosting industry there is no better way than to use a a reseller hosting account.

Disadvantages of Reseller Hosting
Although the aforementioned advantages seem quite appealing to aspiring hosting providers there is a down side to reseller hosting. The following disadvantages
apply to a fraction of reseller hosting accounts. Reseller hosting accounts only provide limited IP addresses with which you can host your clients' websites.
Some clients may request multiple IP addresses, in which case you would need to provide justification. Although this is usually a somewhat simple process it can be an annoyance and in some cases justification is denied. Make sure you speak with your hosting company beforehand to find out how many IP addresses are available to you.
Another disadvantage of reseller hosting is the low profits that are usually associated with low end reseller accounts. Usually you'll need to purchase a comprehensive plan to get the resources needed at a cheap enough price for the business to be lucrative. Just like any other industry, you'll get more for your
money if you buy in bulk. This can create a significant problem for individuals that are on a low budget trying to build a profitable hosting business.