Which is better; tier or package reselling?

[benh48]

I am considering starting a reseller hosting company and doing some research on it. From what I understand, I can resell in 2 ways:
1) sell the same hosting packages that the parent hosting company sells, but at a discounted rate (what I call tier reselling; e.g. ipower.com reselling) or
2) get a bulk hosting package and create my own hosting plans (e.g. hostgator.com reselling)

I tried finding threads on WHT about this issue but didn't really find anything.

My questions are:
1) Is one way better than the other?
2) Are there other reseller options?
3) Pros and cons of each?

I leave it up to you on which questions to address.


Thanks in advance,
Benjamin

[Decker]

If your serious get a server and sell them - if there is a 3rd / 4th party support can become difficult.

[Richard]

If your starting off, then i would go with tier reselling, then when you get some customers move to a reseller package. This way you don't lose money if you don't get the customers.