Originally Posted by ldcdc
A danger with master resellers is that you may be getting your account from a super master reseller, which gets his account from an alpha master reseller who's got it from an unlimited everything provider. Not a position you really want to be in.
Some providers do put their resellers on separate servers which helps solve that dilemma. As long as you put restrictions in place, you can run this setup without issues. Do have to admit, the software was not good a while back but things are much improved.
Offering your resellers to create unlimited resellers for example is a very bad idea and not something we personally do. This setup is best to get you started at a good affordable price, however if you manage a lot of resellers a dedicated server is highly advised.