I know this must seem like a dumb question, but can someone please explain it to me? From what I can see you are buying web hosting and selling it on for profit, but can people use it for their own personal websites instead of selling it on?

Yep, absolutely. Its effectively, multi-control-panel / hosting plan hosting.

 

You buy a big chunk of a shared server, then do with it what you please in terms of splitting up the space and traffic allowances, email accounts and anything else :-)

 

You can resell it, or use it for your own websites, as each will have its own control panel instead of trying to share 1 control panel and allowance allocation for many websites.

Reseller web hosting, is selling web hosting to your customers under your own brand when the web hosting is provided by a larger company. This larger company is selling you a large web hosting account which you then break apart to sell as smaller quantities to your clients.

but can people use it for their own personal websites instead of selling it on?

 

Surely reseller hosting package can be used for person use.. their is no compulsion that you sell the space.