I wouldn't say they aren't, but I would say don't hope to make a lot from them. Most newbies to the business only just break even then bail out because of the work involved.
There's so much competition these days in the web hosting industry. Do companies still manage to profit from selling web hosting anymore?
The big companies do profit, because of the sheer amount of customers they have. But the smaller businesses do not normally last for more than a year or so.
Hi, This one is quite funny and important too. When it comes to starting a company weather it be a hosting or development. It takes some time to get the grip in the market. There are a lot of marketting stratergies which can be adopted and done by your own which will help get better ranking and sales. Its an old saying "If its good, its going to work" so make sure the product is making some good impression and also providing something unique and productive. Be on the chair because the web is too broad and some buisness will definately come even if you are just a beginner. Best of Luck.
Tomorrow marks 14 years in the hosting business for us. Yes, you can make a profit at it. If not, why do it. It's a business like any other. Bella Mia, Inc. Born April 1st, 1997!
Go back 5 years and it was much easier, these days there are too many 15 year olds living off of "alpha master resellers", so those of us with actual servers struggle some times. Who ever invented master resellers needs to be shot >.<
To make the answer simple, if you have a unique business model, its definitely profitable.. If you try to copy others, things will most likely fail.
Yes, web hosting companies must be profitable, or else they will stop growing and other hosting company will beat them in terms of technology, infrastructure, and support.
It all depends on your client acquisition strategy. Resources can be acquired for cheap these days but marketing costs have rocketed. Hosting costs to end users are coming down continuously whereas online marketing costs are getting higher and higher.
With hundreds of new hosting companies popping up daily, web hosting has became a very competitive market. It can be profitable, but it requires a lot of hard work, honesty and patience. You have to find a niche, keep the clients happy, go beyond their expectations and build a good relationship with them so they recommend your company to their friends and family. Without the word of mouth, you'll end up spending a fortune on advertising and new client acquisitions, usually with poor results.