Reseller hosting is actually one of the best ways to make money online without having to go through the hassle of running your own online business. As long as you know what youre doing, youre likely to gain profit and make money out of the venture.
Basically, what you do in reseller hosting is that you buy storage space as well as bandwidth from a parent web hosting site and break it all up into smaller packages which you can sell to people interested in getting hosting space for profit. This is why they call it reselling you basically sell what web hosting sites would have originally sold to you as their client, but instead of using the space as originally intended, you sell it to others.
You gain profit from reseller web hosting because the main web hosting site will sell the space and bandwidth to you at a discount for purchasing a big bulk, pretty much like getting wholesale from a warehouse, except that this is done online.