lol
Reseller is a large hosting account that has what is called WHM (Web Host Manager) installed (similar to cPanel but for Web Host management). This allows you to split your one management account into several smaller accounts which are then run exactly the same as if you were selling hosting space on your own server, no difference. You can alter the account size, have predefined account types and sizes, have bandwidth reports on client accounts etc, some even have built in API's that allow you to have a website running the backbone programming of the webhost so that everything is set up and paid to the web host, and they pay you your markup profit (kinda similar to affiliate I guess).
Primehost is good, from memory, but at the moment I use Hostgator.I have only had a couple of issues, and they wer resolved within 5 minutes using the online help which is brilliant for me in Australia and they are in USA.
I buy a certain size for $30AUD/month, and have a max of 40 accounts that I can put onto that (due to the size I have set for my accounts). Those $40 accounts are charged at either $9.95/month without ongoing maintenance, or $19.95 with ongoing website maintenance. Do the sums. It works out beautiful, as I said, very similar to the upselling extended warranties. I find working on 20% of sales return with issues, and create your markup from there.
Don't think you can go off and earn $1000's from just selling hosting. Bear in mind, that I charge $9.95/month for an American webhost. If a client were to get from anywhere else they could get the same package for around $2USD per month. The idea, is offering an extra service for $10/month called maintenance, in case anything needs to be changed (ie some content, image placements, change of html/css colours or fonts etc - no template or flash redesigns though!) and because although CMS can be user friendly, "they are business owners, not internet geeks. Why should they learn how to use a CMS system). I install a free CMS system called SnippetMaster on all my accounts, and use it myself if content needs to change, so I dont waste time altering html and uploading files etc, and if the client wants to use the CMS themselves they can, but it only changes text...so if they want an image inserted, or if they destroy their site from using the CMS, I am here to the rescue...for $10/month.
It certainly isn't a rip off, and in Australia, general hosting is a minimum of $300pa for less service than what I deliver. So, as I said in another one of my posts, its ok to charge what you want for your products or services, but you must give a reason for why someone would pay that price, and I obviously give a good reason.
Hope that helped.