Resellers often are very price sensitive. They would rather go to a web hosting provider that can give them a better price by saving a small amount of money, than one that gives a better quality user experience in terms of the control panel offered, the service and the billing mechanism offered. This is the most common mistake.
A wrong control panel can be a pain. It can often malfunction, cause your client’s websites to go down and be a huge mess when figuring out support. For example, with cpanel it has been reported that resellers face lower support requests, this is because the documentation is extensive and solves most of the queries of the users. Cpanel offers videos and tutorials that can be branded through a reseller and given in response to users support tickets, for routine things such as creating email addresses, adding and removing domains etc.
The amount of web space you get is also another factor. Some providers will advertise that you can use unlimited space, and add unlimited users. This is a farce, its impossible for any provider to offer you infinite resources. You should go for a provider who can provide you a reasonable and fair price for the services you get.
Another important thing is to get your domain names from the same provider. There may be some issues, in regard to integration such as using third party DNS servers. Some customers report that using a different domain name provider sometimes has road blocks such as the difficulty in changing the name servers to point to the hosting provider. It’s always easier to use the same provider, because the provider would set up the domain name servers by default, for you. Further, domain names do not form a large part of the revenue for hosting companies and they would not sell them to you at a large margin. For example, if the hosting company gets domain names at $ 1 they may sell it to you for $ 1.05 ie. at a 5% margin, which may not be workable for a company that only does domain names. It’s like going to a restaurant – and buying soda. If you went to Pizza Hut, and bought only a bottle of coke for $ 5 – Pizza Hut would probably make hardly $ 0.5 – but at the same time if you bought a slice of pizza for $ 5 (the same amount of money in actual sales) they would make $ 2 or $ 3, ie. Pizza Hut makes much more if you buy their main product, ie. Pizza. Similarly, if you buy a domain names from a domain name provider – you are merely paying them their profit, but if you buy a domain name from a hosting provider, you’re probably getting a better deal. For example, you can buy a .com mainstream domain name from hostgator for $ 12.95, hostgator being a core web hosting company. At the same time you can buy a .com domain name from dotster, a mainstream domain name registrar for $ 14.99. Accordingly, it is always better to buy a domain name from your hosting provider, than buying it independently from a domain name registrar. Not only do you get easy access to integrate the DNS services, you also get better pricing.
Most resellers also undertake other work for their customers, such as installing other scripts – like wordpress, or blogs, or design websites. As a reseller you should look for providers that give you ease of installing such scripts and make life easier for you. Some providers give you installation scripts that let you install wordpress in less than two minutes flat, creating the database and all. This lets you focus on more important things like design, SEO and the like.