Reseller hosting basically lets you establish your own branding (aka private labelling) of web hosting so that you can sell web hosting packages to customers. In reality, you will be either renting a part or an entire dedicated server from a major web hosting company. This major hosting company provides you infrastructure, hardware and also importantly the ability for you to setup billing, disk space, bandwidth for each of your customers.
Also you do not need top notch technical skills to be a reseller. For your customers, you provide direct support. But at same time you do have technical help and support from your parent hosting company (from whom you purchased the reseller hosting package). Hosting related technical issues can be resolved with help of support from this parent company.
Reseller hosting is very lucrative and there are many successsful hosting companies out there, who in reality are successful resellers. Many entrepreneurs choose to start a branded company this way. Reseller hosting packages so cheap, it is very easy to setup a reseller hosting package overnight, literally!
Also web design agencies or web developers who have many customers under them opt to buy a reseller hosting account, as this lets them create hosting packages and billing setup for their customers.
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