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Anyone thought of starting a web hosting business?

Discussion in 'General Business' started by soufulow, Apr 9, 2009.

  1. #1
    Source: http://www.hostingdiscussion.com/web-hosting-business-legal-issues/19794-new-web-host-tips.html
    SEMrush
    I read this forum post about web hosting business not long ago and was convinced that web hosting is still very profitable (even though it's competitive). What's your comment regarding on this? Is there anyone who've been thru the process and willing to share some thoughts for the new comers?
     
    soufulow, Apr 9, 2009 IP
    SEMrush
  2. Kwaku

    Kwaku Well-Known Member

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    #2
    Hosting is hard work because of the competition, but it works and works fine IF you can do everything yourself. In my experience, if you are a one-person host, you'll be profitable; you can even make a very good living (I was up to about $4k/month profit doing it). But if you need other people (notably admins), your margins will drop to nothing or beyond nothing (making losses).

    The fun thing about hosting is that you get to meet only business people which will grow your network and will get you webdesign, programming, writing and other custom jobs which can make your margin a lot larger so you can hire people. It is possible to do this with only hosting, but only a few businesses do (compared to the whole hosting landscape).

    If I would start it again (I sold it), I would probably just do everything alone again. It is nice because the clients will love you and you can 'steer' the amount of money, love and work; work harder and you'll get more money and more satisfied customers.

    On forums (like this) people dream of working very little, outsourcing everything and sitting on the beach (or whatever ; something non-work you like doing); in reality almost no-one can, and won't be able to until they are 65 and even then probably they cannot. It's called life. I rather have a steady income and work hard than hang around forums and looking at (fake) success stories. The hosting business is a good, way to make a larger income than by far most people here and to make it superstable.
     
    Kwaku, Apr 9, 2009 IP
    jacobbannier likes this.
  3. mentos

    mentos Prominent Member

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    #3
    Theorycally it easy to say then done.
    I personally have owned and operate a new hosting company.
    Its easy to drive new client.
    But the hard part is keep the customer stay loyal to you.
     
    mentos, Apr 9, 2009 IP
  4. eFishy

    eFishy Guest

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    #4
    I am currently running my own hosting company.
    Its alot easier than it sounds and you need alot of spare time!
    also money really really helps :D
     
    eFishy, Apr 9, 2009 IP
  5. LaneHost

    LaneHost Peon

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    #5
    If you work hard, a hosting business is just like any other business is more then possible. :)
     
    LaneHost, Apr 9, 2009 IP
  6. ActiveFrost

    ActiveFrost Notable Member

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    #6
    Do I have to buy my own box ( private server ) or it's pretty easy to start off with a reseller account ?
     
    ActiveFrost, Apr 9, 2009 IP
  7. Whippet75

    Whippet75 Well-Known Member

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    #7
    First start with a reseller, then upgrade to vps and then dedi box and then another dedi box, and then a rack, and then a cage, and then a datacentre.....lol
     
    Whippet75, Apr 9, 2009 IP
  8. ActiveFrost

    ActiveFrost Notable Member

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    #8
    Xe, ok ! Any suggestions on where we can get a "good" reseller accounts ( kind a stupid question - no one wants to share his goodies :D ) ?
     
    ActiveFrost, Apr 9, 2009 IP
  9. TheHostingPalace

    TheHostingPalace Peon

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    #9
    Agreed.

    Basically start with a reseller account and when your business gets more people move to a VPS etc. You have to kind of pick a target market and have a lot of time for trouble tickets etc.

    If you're not technical then yes you need somebody that is which will drop your profits. It's always good to weigh your options.
     
    TheHostingPalace, Apr 9, 2009 IP
  10. BlackhatVault

    BlackhatVault Banned

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    #10
    Of course you start with a reseller account, but it's risky too. First off you'll have to find a reliable host which doesn't close your reseller account for "overselling" even though they give you "unlimited bandwidth and gB" (nothing is unlimited).
    But these days a lot of the free hostings are giving out thousands of free megabytes space and bandwidth, which makes it hard for the paid services. But still, as already said here, anything is possible as long as you work hard.
     
    BlackhatVault, Apr 10, 2009 IP
  11. candychip11

    candychip11 Peon

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    #11
    starting a webhosting business from next friday named pegor
    already ordered a domain for over $1000 :)
    & already paid for the promotion to the famous seo copmpany

    Starting webhosting business from 1st of May 2009
    Hi,
    i am starting new webhosting company from 1st may 2009
    i have already ordered a domain
    Pegor.com
    this was already registered so i order it for $1000 to its current owner :)
    i know its not worth much but
    last time when i checked whois , this domain was unregistered
    i forgot to register it and paid over USD 1500 for the promotion of this domain
    to the famous SEO company,
    i will get the domain till next friday
    and start a completely new and awesome hosting Service :)
    which will be based on fastest web servers

    Thanks
    Regards,
    Candy Chip :)
     
    candychip11, Apr 10, 2009 IP
  12. LH-Danny

    LH-Danny Member

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    #12
    To start with, I'm not going to tell you to start a hosting company, and I'm not going to tell you not to start one - but heres some little hints and advice.

    My company has been around for 1 year and 3/4 months now, and we're running solid; it pays for itself now, without me having to rake in my own pocket - but I'm still making negative figures from the amount of money I spent in the beginning to get everything running. It's not a company where you can set up over night and hope customers will find you, then order from you after looking at your website for a few minutes.

    You need to find a niche - I know you have more than likely heard this too many times by now, that you start dreaming about it - but it's the truth. Offering hosting to the 'general' public, with no niche will get you no where. That's where you have to find a niche that has barely been touched by anyone else; you will also need to offer something that other companies don't, for example: what can you offer that other companies like HostGator, Dreamhost, Lenohost do not offer.

    You're going to need a large budget to start. Even if you only advertise to local companies, you still need a budget, it's no good just turning up to their office with no information. You will need information leaflets etc, but have more than 1 copy, so they can take one if needed. Bearing in mind, you're more than likely better off starting in your local area... Think, how many hosting companies are actually based in your area?

    I've read a few posts up above saying to start with a reseller... That's a bad idea! If it goes offline, or theres a problem, or you need something installing, you have to wait until the host contacts you back. That's no good if your reseller accounts has gone offline, and your customers are getting angry. I recommend that you start off with a VPS, not too large though, you can upgrade later. If you start with a VPS, you can install what you want and run it how you want!

    And finally... WRITE A BUSINESS PLAN!!!
    The amount of companies that come into the market, without a business plan is unbelievable... and they will only last a month at the most. Write a solid business plans, and review it every month to see what can be changed or what needs changing. It's never too late to revise your business plan.

    I hope that helped, a little. If you want anymore advice, feel free to PM me. (I barely visit threads that I've already posted in)
     
    LH-Danny, Apr 10, 2009 IP
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  13. HumanVirus

    HumanVirus Active Member

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    #13
    Well you can get a good reseller account at hostgator.:)
     
    HumanVirus, Apr 10, 2009 IP
  14. Euphoria

    Euphoria Well-Known Member

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    #14
    I feel bad for you, your mind-set is fucking terrible, don't get me wrong you have the best EMPLOYEE/Small biz owner mind-set but that's it.

    You don't have a millionaire/ successful person mind-set. You won't become a millionaire cause you lack education. I wish you best of luck and keep working hard making us rich people richer!! THANKS BUD!
     
    Euphoria, Apr 10, 2009 IP
  15. ActiveFrost

    ActiveFrost Notable Member

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    #15
    Actually, he said the truth and I do believe that you can't just buy a reseller account and start getting thousands of clients ! By the first, business plan ( that's only for you so - form does not make any sense ) is a must or you'll have to spend more time on planning, support, calculations, new offers, etc. !
    Anyway, red blob speaks by itself ( you know what I mean ) ..
     
    ActiveFrost, Apr 10, 2009 IP
  16. Kwaku

    Kwaku Well-Known Member

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    #16
    Right. I don't have a millionaire person mind-set and I lack education. You're a riot. I'm willing to bet serious cash that I make more in 1 month than you in 1 year easily. I don't like making those kinds of remarks, but you seem kind of misguided making those remarks.
     
    Kwaku, Apr 11, 2009 IP
    Erzulie likes this.