What things should be noticed before starting a hosting company?

I think the country where you try to start the service is very important. If you are thinking to start hosting service for US/UK/English Speaking users, you are going in a very hard market. It is big market also, but very hard with all the estabilished hosting companies there are in the english market.

If you plans to start in a not developed country, it is a Bet. You can win if the country starts to grow, you lose if it doesn't grow. However you will need knowledge and stable organization there, because people want to speak by telephone, and people dislike to order this type of services by foreign companies.

The most problematic thing about hosting services, it is people haven't knowledge. A lot of people think, they can start a website, and they can make money, and they think they can start with 10$ per year and make 1 billion after 1 year. These are 98% of people that start a website. Well, the other 1% are the goods, people that just do websites for fun, and 1% of people that really earn some money bye websites.

Because many people aren't serious in making web sites, they goes for the cheapest price. And they also are the worst clients, because they haven't knowledge, and they will create "security" problems at the servers.

Usually people that renew domains, they do it, after failed with website, they renew for E-Mails. So it is all about e-mails. The success its there. Once people start to use an e-mail address, they are forced to renew. So good e-mail service is the secret for a successfully hosting company, but it is hard. You should have a separate Mail Server, a separate DNS Server, and if you want to do Linux and Windows, they are other 2 servers.

Hosting market is it a very hard market. There are a lot of things to manage. You need to earn money to pay bills, than you need to advertise your services in a working way, you need to deal with stupid people that put "bugged" scripts on your server and often they also claim "money losses" when they payed 10$ per one year, and they created thousand $ of damage with their stupidity. You must deal with fraudsters. And Internet is full of fraudsters. Last year I got called 4-5 times by local Police, for fraudsters using my services... You must deal with crackers that try to hack bugged script installed by clients and try to send phishing, or other spam, or try to attack other servers.

More restriction you put in your configuration, more secure are your servers, but less people is able to use your service, than less people is happy and like your service, and of course, the unique secure 100% server, it is the "turned off" one.

I do hosting services, and domain registration, I can say if could back in the past, I wasn't going to do this job again, too many people that doesn't know what they do, and most important thing, they don't want to pay for professional sites because they think they can do by themself. And they are 98% of your clients. I earn money also by selling advertising, links, banner spaces, adsense, that type of things, and I can say, I'm more happy with that, because I have zero problems with advertising. That isn't the same with hosting.

And I manage around 1600 domain names and an equal number of hosting plans.

 

Make a good affiliate program - that'll get your banners all over the internet

 

Great post nimhost and xuncoder...

 

thx boss

 

Here is some TIPS :
1- Look for the prices and put a cheap price . most of the new webmaster are looking for the cheapest host .
2- Make an offers from time to time to again more customers
3- You must hire people with great experience in this field .
4- try to offer free service like script installing and such stuff

 

Why peoples mostly believe on Hostgator, Godaddy, Hostmonster, etc etc. Even lots of hosting companies are present with better service and speed....

I think its hard to believe on New host? How we can remove all this.. So peoples believes on us.
What we should do to make a trust on us.

A company registration proof, BBonline, Etrust etc etc how much its works?