Hosting Companies that sell Reseller Packages are the Pimps of the hosting industries and Resellers are there Whores.
(I hope this is not offending as far as the analogies are go)
If it is I apologise!!!
Hosting companies that sell these Resellers are like the pimps of the hosting industry. They sell low cost packages to any one willing to pay them money. Then the reseller goes out and spasm themselves some customers. The reseller that are to just like the company are only in it for the quick buck and will disregard the companies terms of service (more like suggestions) and sell all kinds of people outrageous amounts of space for a dirt cheap price. They sell to porn,hacking,virus ridden,stream video games and god knows what to god knows who, they suck up all the bandwidth on the shared server. Infect it with viruses and use up all the space. Now the unsuspecting customer with a legit site gets boggled with all of these problems. Server failures, crashes, and every thing else that can happen. So they contact there reseller wanting tech support. So how can this reseller honestly give you tech support if he doesn't know about a server or where it is actually even located. He only knows how to sign people up. So all he can do is lie, if you are lucky enough to get a response back at all and say there fixing it. So then after a while the reseller decides not to pay his hosting bill then all 100 of the virus infested crap sites + legit customers that he has sold gets turned off. Then all people are left high and dry. Also when the reseller tells you that his big companies is located in California or New York some where when come to find out its just a little desk top server some where in Malaysia. This happens more often than not.
To you people like web designers that legitimately buy these packages to sell or provide hosting only to your good customers and there sites, this is what really goes on with these packages and your sites and reputation are in jeopardy because of it.
I own my own hosting company I made the initial over $150,000 investment to start up and it has grown to be quite successful. It took long hours, hard
work, and blood,sweat, and tears to do.
The sad thing is when we offer some one a reliable service for a low fair price, allot of people think that we are crooks just trying to scam them out of money because they have been burnt to many times before.
For the people that buy in to these dirt cheap packages and wonder why they get terrible service or burnt in the long run this is why.
Then you look at the legit companies that have to charge more to maintain the high level of service and gobs of space that you demand you think there a rip off. This is SAD.