Intermediaries or middlemen exist in every business; they act as liaisons between the manufacturer or service provider and the final customer. In most cases, they might not even own many assets that they handle. Middlemen make a profit in the transaction.

The Internet has the potential to eliminate intermediation by offering services directly to the customer; at the same time, it has spawned new types of intermediation services. Web hosting is one such service that has given rise to intermediaries called resellers. Resellers are third parties who buy space from web hosting companies and then resell the space to individuals and small and medium enterprises for a profit.

Generally, large web hosting companies sell multiple accounts. The buyers of multiple accounts may then sell the unutilized accounts to others. The resellers are usually website developers. Since the resellers operate from a parent host, it would be very difficult to identify a reseller. The reseller buys space at a discount and then marks it up, which makes a win-win situation for both reseller and the buyer.

In order to be a reseller, one needs to have multiple domains. As a third party, it is essential that, in addition to the domain account, the reseller needs to have full control over the administrative panel of the client