reseller hosting business

Discussion in 'General Marketing' started by Arians, Apr 14, 2007.

  1. #1
    1- is reseller plan for starting a hosting business is good?
    2- is it profitable?
    3- what is the future of webhostingbusiness?
    4- and how i can spread or advertise my business except SE, and dir
     
    Arians, Apr 14, 2007 IP
  2. Sam Baker

    Sam Baker Peon

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    #2
    1- I think you might get more customers if you advertise that you have a server for your customsers hosting.

    2- It really does depend on how much the server is per month and how many customers you need to repay each mont

    3- I think their are too many web hosters, but then again, I think the cheaper you charge (the more you give), the more customsers that gets you, and if you add all of the many customsers that are attracted to the low price and good plan, you'll make a profit

    4- You could somehow host some popular sites, or upcoming sites "for free maybe" and tell them to put an image on their footer.
     
    Sam Baker, Apr 14, 2007 IP
  3. JochenVandeVelde

    JochenVandeVelde Peon

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    #3
    The Web Hosting industry is very tough, 90% chance you won't make it and you will have to quit within a couple of months. To have success you need unique ideas so you can convince people to host their website with you instead of with another hosting company.

    I'd personally go for you own servers (buy a couple and put them in a datacenter near you) because you will then have much more control than with a reseller plan.

    To have a profitable business you need alot of clients. Let's say you offer hosting at $10/month, if you start off your first month with 10 clients (wich is pretty good for your first month in hosting business) you earn $100. You will have to pay let's say $30 for having your server(s) in the datacenter. So your profit is $70. If you get 10 new clients every month you will earn about $1000/month within about a year. Doesn't sound very good, does it?
    Ofcourse you will need more client signups than 10 every month to make it out there from thousands of other hosting companies.

    If you still want to start a hosting company after reading this, this means that you are very optimistic and have a good feeling for the future, wich is very good. So if you still want to start a hosting company after reading this, you should really do it, if you don't want to do it anymore, you're completely normal.

    Some green rep would please me now :p
     
    JochenVandeVelde, Apr 14, 2007 IP
  4. jmweb

    jmweb Peon

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    #4
    While I agree with some of the above post, I do not agree with it all.

    Yes it is a hard business to currently to get into if your just starting out. The word cut-throat explains it for new people. I've read for the last couple years it is typical to take 4-6 months to get your first customer (which is scary).

    Is it profitable? Yes, if you know exactly what your doing. If your making it up as you go, a job at McDonalds would be more profitable and less time consuming.

    As for how to start, well first you need to register your business, then go with a reseller account. Avoid a dedicated server when your starting out or else your cost will balloon, extremely fast.

    It is normal for companies to go out of business when trying to make a go at hosting. Not many companies make it and a lot of people just end up wasting their time.

    Consumers know that there are a lot of hosting companies out there, and some are educated on what to look for, however a lot are not. Be prepared to have some people try and use this to their advantage, for instance the other day we had a shared hosting customer demand we give him root access to our shared server or he is going to cancel. Well, of course we won't give him root access, but we did help show him "the light".

    If you can make it through a few years of hosting, you'll do fine but getting there is the problem.
     
    jmweb, Apr 14, 2007 IP
  5. AlexandraUK

    AlexandraUK Banned

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    #5
    boy, you'll need a lot of money and time on your hands to make it in the hosting business

    I have a friend doing this and I know what's involved....
     
    AlexandraUK, Apr 14, 2007 IP
  6. prestons

    prestons Peon

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    #6
    Hi,
    I have been in the hosting game now for a few years and I must admit that at the beginning a lot of mistakes was made but you only learn from your mistakes and I have now built a web design and hosting business to run very profitable.

    See my answers to your questions.

    1- is reseller plan for starting a hosting business is good?
    Yes, as it has a very low startup cost BUT you must only use companies that you have heard of. Do not try and look for the cheapest, you will find that three months down the line they have gone. Pay a little more and get quality and service.

    2- is it profitable?
    Very much so BUT you will never make any money by trying to sell hosting as a single service. You need to package the hosting in to other services that you offer.

    3- what is the future of webhostingbusiness?
    Who knows, but the internet is only going to grow and grow and there are millions to be made from hosting. The problem is most people who start hosting businesses fail in the first 6 months because they have no idea about marketing.

    4- and how i can spread or advertise my business except SE, and dir
    Do not put all your money in to one single form of advertising. Spread your budget in to both online and offline promotions.
     
    prestons, Apr 14, 2007 IP
  7. Arians

    Arians Peon

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    #7
    but from where i should have to start. what kind of knowledge i requires? ( which programming languages and few other stuff
     
    Arians, Apr 15, 2007 IP
  8. 8everything

    8everything Peon

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    #8
    You don't need programming seeing how reseller host companies make it easy for you! (you're not going to build sites for them are you?).

    Anyways, just a piece of advice: there are so many hosting companies out there.. you might want to look into how you can make your company unique and different from others! (my suggestion: work with a websitedesigner and collaborate on services)
     
    8everything, Apr 15, 2007 IP
  9. Jasonb

    Jasonb Well-Known Member

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    #9
    to be honest it can be profitable but unless your an amazing at SEO and online marketing and have some unique features that are offered then its hard to make big money from the industry. at the end of the day the industry is way over saturated and with the likes of Hostgator.com, Greenlush.com, Mediatemple.com, Fasthosts.com, 1and1.com, Godaddy.com, Dreamhost.com ect... There are hundreds upon thousands of quality web hosting services already youll need something pretty unique to make a ton of cash
     
    Jasonb, Apr 15, 2007 IP
  10. prestons

    prestons Peon

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    #10
    You should start by first purchasing a reseller hosting account and learning all the features that it offers. You do not require any programming knowledge to run a reseller account but you DO need to be aware of all the different functions.

    Remember that the most important thing about running a hosting company is SUPPORT and if you do not know the answers to your support requests then you are never going to make it.

    At the start you will get support reqests like "How do I upload my website?", "How do I set my email up?". It does not matter if they have a full Q&A in front of them as most people do not bother to read and it is easier for them just to ask you.

    75% of all my support questions are already displayed in a support database so take a little time to get to know everything first.

    Do NOT try to market just hosting as you will find yourself spending more money on advertising than your income. Unless you have a very good service that you can offer besides the hosting do not start.
     
    prestons, Apr 15, 2007 IP
  11. jmweb

    jmweb Peon

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    #11
    Prestons: That is a bit incorrect, the reseller should be aware of some of the basic knowledge of programming. If your not familiar with it then what will happen is, a customer will contact the reseller regarding the issue and the reseller will contact us, being the middleman. While we don't have a problem being asked, it will only hurt your customers experience with the reseller.

    If the customer finds out, or if your not available when we reply (20 minutes later) then you are only delaying the end user or customer.

    Take a look around for some basic FAQ's and read them over, basically learn as much as you can about hosting before you start. Customers will not appreciate telling you how to check basic functions such as phpinfo if you're not aware of how to do it.
     
    jmweb, Apr 15, 2007 IP
  12. prestons

    prestons Peon

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    #12
    I do admit that knowing programming is very useful and in some cases a must but you can still start up without knowing this BUT you must know about your own hosting service. The programming can be learn't as you go along at the start.

    Most hosting companies already know programming because they also provide web design/programming services so this is not an issue.

    As there are so many different aspects to programming it is only going to confuse a beginner to try and learn too much too quickly. When they have learn't all about their hosting functions then they will soon learn what they need to learn by all the support questions that they are asked.
     
    prestons, Apr 15, 2007 IP
  13. Paukz7

    Paukz7 Peon

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    #13
    Well few days back I started my webshost, well actualy it's very hard I have got one sale in my first 4days and than only for $16.95 for 1month!
    If you don't have much funds and info about how to make this all up better don't start
     
    Paukz7, Apr 15, 2007 IP