The reseller may rent a dedicated server from a hosting company, or resell shared hosting services. In the latter case, the reseller is simply given the permission to sell a certain amount of disk space and bandwidth to his own customers without renting a server from a Web Hosting company he signed for a reseller account with.
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Zamfoo WHMReseller is an Master Reseller plugin which enables a web server owner to make a new level of reseller hosting, called Master Reseller hosting.
There are various companies that offer dedicated hosting reseller programs. Some companies that offer dedicated hosting reseller programs online are 100TB and HostGator.
Master Reseller hosting kind of similar to reseller hosting.It allows you to create reseller accounts too, so you will be able to create reseller accounts to sell to customers, it's like having a dedicated server, but without the management and costs.
Some benefits to becoming an unlimited reseller of hosting include Unlimited Domains, Free WHMCS and Linux and Windows. You can learn more at the Reseller Club website.
Reseller hosting is available through Green Geeks, PRChecker, GoDaddy and HostGator. Plans can also be found through HostPapa, B2Evolution, RochenHost and many other hosting companies.