Many people would not know if their web host were a reseller or the owner of a server. When a person is in a reseller hosting program there are few ways that an observer would be able to discern if they were an owner or reseller. The reseller is using bandwidth and disk space that has been purchased in bulk from a server owner.

Many businesses sell web hosting using the reseller hosting program. Small design firms, developers, system integrators, small web hosting companies, large web hosting companies that are not large enough to get their own server. These people receive a bulk of bandwidth and disk space from a server owner that they can resell to individuals.

Individuals who enter reseller hosting programs include people who have several domains and want to put them all in one account. This is often a more cost effective move than paying for individual accounts for several domains. People who have very popular domains or large forums will often need extra bandwidth and disk space and will enter a reseller hosting program.