How to Start Your Own Hosting Company

Hey everyone,

I decided to post this thread on how to start your own hosting company since many people have been asking me. This will include some tips on what to look for when starting up your host.

To begin, I strongly recommend reselling off a provider than getting your own server. Starting your host from your own dedicated server or even Virtual Private Server (VPS) can be costly and troublesome if you have no server experience. By reselling from an existing provider, they will take care of all the server management.

Different resellers offer different features. Start by comparing the packages between different providers and see if they offer you any extra goodies that you can offer to your clients, or even you can benefit from yourself. For example, some providers offer Softaculous (1-click installers for different website scripts). Some providers can provide website builders. You may also look if they offer cPanel/WHM hosting to see which panel you're more comfortable working with.

Since you will be reselling, I strongly recommend looking at provider reviews as this gives you feedback on their services. You will need excellent uptime since your clients' sites could be down if their server is having constant issues. You will also need quick support since if there is a client who needs a specific request on the server, you may need to request it from your provider. Hence, that support loop may take some time and you will need fast answers from your provider.

After deciding on a provider, you need to pick a company name. Ensure that it is unique and catchy, and that the domain is available. Short Top-Level Domains (TLDs) are preferred. Another feature to look for is if the reseller white-labels your nameservers. That way, you can give nameservers to your clients that will be unique to your domain. You may also purchase a dedicated IP address, but you could hold that off until later. Clients will not know that you are running off the reseller if your nameservers are white-labeled by your provider.

You will then need to setup your site after ordering the reseller hosting package as well as your domain. When setting up your site, you will need a script to manage your clients, support, and billing. WHMCS is a common option that many hosts use nowadays

WHMCS costs about $16/month for a branded license, or you can purchase an owned license for a one-time fee. However, one thing to keep in mind when looking for a reseller provider is they sometimes offer WHMCS to their customers with their packages. This can save you quite a bit of money especially since you're just starting.

This is most of the information you need to get started. After that, you will need to setup your billing panel to connect with your server and such. Again, some providers can do this for you if you get stuck.

Do not hesitate to let me know if you have any questions.

Best of luck to all of you,
Mike

 

People still want to start there own hosting companies these days????????????????????????????????????

 

Go for it if the condition of your area is business friendly

 

I agree with you that some start-up companies may not persist in the long run, but everyone has to start somewhere. Big established hosting providers were once small and new in the world of hosting. Just with any business, starting up your own host is an investment and there are risks associated if you don't put in the right amount of effort. Having a well-defined business plan is definitely part of the picture, and monitoring the effectiveness of your goals is as crucially important. I never said earning clients and their trust was easy, but if you put in the right amount of work you can get up there.

 

I think this is silly. Unless you are hosting a particular niche I can't see this working out... Maybe you should find an occupation where there is a strong need for a web site then build themed templates around that occupation then offer a specialty package. ie. Websites for hair designers.

 

I make a fair bit reselling hosting.. but if you haven't got the live support people can get tetchy

 

This was a friendly guide for people who are interested in starting a WebHosting provider. I offered some tips based on my experience and if you don't think this is the right business for you, then don't invest yourself in it

 

I appreciate that you are trying to help but people are just making the point that it is an extremely competitive market. NetStar's idea is the only way I think it could work as the packaging idea gives you a USP.

 

It is my pleasure I never said it wasn't a competitive market. But there are risks associated with any business. NetStar's idea may not be suitable for me, yet I did not oppose it. The WebDesign market is saturated as well, but if you think it's the right thing for you, then do it! Each business owner, whether prospective or existing, has an idea of what could work for him/her.

The sole purpose of this guide is not whether or not you SHOULD start a WebHosting business, but rather HOW to start a WebHosting business. Let me tell you there are at least a couple of people who messaged me on how my business got started, and so I decided to post a few tips in this guide. Whether or not someone is interested in such a project is up to their discretion, so I would appreciate if people stopped discouraging my good incentive.

 

Fair point, and I am glad to hear people are having success with it.

 

There is definitely a market for selling hosting on marketplaces, like on those fiverr alternatives and what not. I've done it a fair bit in the past myself, but as a reseller of web hosting you always run the risk of your provider pulling the plug at any time with no comeback..

Unless you have the cashflow to own or rent space at a datacentre, provide licenses, domains, dedicated servers, VPS, hire staff to run support, etc.. then I'd say its hard to run a sustainable hosting business as an individual, especially as you are always dependent on the middle man and can't scale and grow the business

 

I definitely agree with you. However, not all hosting providers started out with a data center. I'm just suggesting as a start-up to go with a RELIABLE reseller provider who has a good reputation. After growing from there, you can think about getting a VPS or dedicated server once you get on your feet

 

useful information, thanks.

I'd add that, as with most businesses, the technical (or product-creation) aspects are in reality a small fraction of what needs to be done. By far the most important part of the job is marketing. Without marketing money is unlikely to be made with this, or most other types of business.

So I'd advise being very sure you understand that before you start, for anyone considering this.

Chris

 

Keep in mind,

- There were merchant account providers before paypal
- There were book stores before amazon
- There were auctions before eBay

I don't buy the mindset, the landscape is too competitive.

If you want to do it, just make sure you build a better mouse trap, otherwise you will just be left in the dust. Fact is all the hosting providers today are the same old boring lame offerings. Offer something unique, competitive and give a reason people will buy from you.

Best of luck!

 

Well starting a web hosting company needs lots of work and resources. Web hosting industry is highly competitive and over populated. If you want to compete with Some giants in these industry you have to provide quality services to your customers at competitive price.

 

As with any business, there is most likely a niche already established for what you're planning to sell. As both of you said, it is a competitive market and there are companies out there who are now common. However, they all started out small.

I never said don't offer something unique, but please realize this guide is how to establish a foundation for your hosting business. A whole other series of tutorials would be needed on marketing and maintaining a client base. Nevertheless, I appreciate your contribution that may be valuable to potentially-interested individuals.

 

Everything is in demand so far you have a good marketing strategy.
Since population of India, China and few other countries can be the best target place since young population in the age group of 19- 30 is too much.

 

This is a good basic guide, it's definitely not easy to get started in the hosting industry but there's still space for plenty of new providers, you just have to put the effort in. It's certainly an industry that pays well if you have the right knowledge to back your business and push it forward.