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Relatively easy $0 > $20,000 -- Hosting Business in a Box

Discussion in 'Making Money' started by bryanon, Feb 14, 2011.

  1. bryanon

    bryanon Executive VIP Premium Member

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    To celebrate all things beginning with 5 (my 500th post, +50 rep count, 5th Valentine's Day that I've absolutely hated (kidding, I've always hated them), 5 bottles of beer on the wall .... I digress), I decided to share a shit-hot (pardon my French) method that has MASSIVE potential if done right.

    I'm not going to bore you guys with newbie-directions. Instead, I'll be extremely straight-forward and urge you to ask questions if anything needs further clarifications. I can't guarantee that I check the thread 24/7 but I'll try and take a look every now and then to address any questions.

    So let's get started!

    SUMMARY

    There's two parts to this business. What you'll be doing first is creating a Web Hosting Company (don't worry - getting this done actually takes less than a day!) and then creating websites which you will give away for free or sell for extremely cheap.

    The "catch" is that those buying your websites will HAVE TO use your hosting (and obviously pay you a monthly fee for it) _or_ pay you a $100 "transfer fee".

    A quick calculation shows that if you go ahead and give away even as little 50 free sites and put them all on a $7/pm monthly hosting plan then you'll be making $350/mo. But the best part for those who are after quick cash is that hosting companies sell EXTREMELY well on Flippa and other marketplaces, and a hosting firm that's made $350/mo for even a few months in a row can easily be flogged for $5k+.

    Do it for 4 months in a row, 50 sites a month, and you'll be able to flip the business for a cool $20k :)


    STEP 1 - ESTABLISH YOUR HOSTING COMPANY

    This is actually the easiest part.

    If you're even a little bit tech-savvy then setting up a VPS and installing WHMCS is ridiculously easy. And voila - you've got yourself your own hosting company. Just make sure that the packages you set up aren't overly generous as you don't want your clients to drain your whole VPS. A good think is that the sites that you'll create will be relatively simple, and hence don't require a whole lot of disk space.

    But if you're lazy then there's a few other options. A lot of companies offer reseller hosting (google it. Or check out webhostingtalk.com), or you can even go with http://www.resellerspanel.com/ who give you a complete white label solution for free - but for a hefty % of your profits of course.

    If you struggle getting the website of your hosting company designed then take a look at the Template Downloads section here on BHW. There's a ton of website templates and you can quite easily find one that fits a hosting company. Or if you opt for ResellersPanel then you can use one of their stock ones.


    STEP 2 - CREATE THE SITES

    I'm not going into great detail about it so use your imagination!

    Simply put - pick ANY niche, choose a template and create a site. If you use WordPress then it shouldn't take you more than half an hour to get a new site up and running. If your host runs Cpanel (which it should) then installing WordPress takes about 7 seconds. Finding a free template and uploading it takes about 15 minutes. Finding (scraping) content and uploading it takes another 15 minutes.

    You don't have to worry about duplicate content either. After all, you're giving the sites away for free!

    Ah, yes - and sites selling PLR products tend to do extremely well ;)


    STEP 3 - SELL THE SITES

    Got your hosting company and the sites? Awesome. Time to list them for sale!

    Once again, your options are pretty much endless.

    If you want quick results then you can do eBay (1p starting price), Craigslist (either "giving away an established website for free" or just sell them for $25 a piece), even webmaster forums.

    You can also do Flippa, however due to the listing fees you have to be careful not to allow your margin to go into negative.

    A _fantastic_ way is offering these sites to offline leads, however it does involve quite a bit of more work. The up side though is that by doing this you will be able to offer far more upsells than just hosting - and charge more than your online leads would pay you.

    P.S. When listing on eBay be sure to use attractive images (within eBay's TOS, of course). Sexy-looking girls tend to do wonders to your listings ;)

    That's it. Enjoy!


    OTHER IDEAS

    - If you can't be bothered to set up your own hosting company (which really doesn't take all that much effort) then you can also refer your clients to another hosting company using your affiliate link. The downside though is that you will lose a good two thirds of your overall profit as you won't be able to sell the business down the line.

    - Bear in mind that you will get extremely hot leads out of this thing, and selling them just hosting would be a crime. For maximum profit, you should put together a full upsell portfolio. And don't worry if you can't perform any services yourself. Just look around the services section on BHW, doube the prices and re-sell those very same services! The possibilities are endless.

    Take care!
    Bryan
     
    • Thanks Thanks x 46
  2. nomorept

    nomorept Junior Member

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    man ur a genius person :p
    cheers
    loved the idea
     
    • Thanks Thanks x 1
  3. SuperBlackHat

    SuperBlackHat Power Member

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    interesting method
     
  4. nomorept

    nomorept Junior Member

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    I understand it but when you give the site for free, you mean you give them the username and password of the account of the site?
     
  5. nomorept

    nomorept Junior Member

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    and btw getting domains for your sites isnt free :S:S
    please elaborate more
     
  6. bryanon

    bryanon Executive VIP Premium Member

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    Yep, that's the easiest way of doing it. You would, of course have to push them the domain name as well because you're 'selling' the site, rather than renting it.

    Use your creativity.

    You can go with free domains, such as .co.cc, or you can use hyper-cheap .info's. However, if you have the upsell process right then the $7 you spend on each domain should be the least of your worries.
     
  7. nomorept

    nomorept Junior Member

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    I do understand and I dont want to seem as if Im asking to be spoonfed but you urged us to ask..hehhe (thanks alot btw)
    anyway, but why would someone take a free site that has a few blog posts and keep on renewing the hosting each month?:S
     
  8. bryanon

    bryanon Executive VIP Premium Member

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    For the very same reason why most black hat techniques that involve social engineering work. And no, I will not spell it out for you. I'll give you a clue though - the world population is 6.9 billion people ....
     
  9. aimndfire

    aimndfire Junior Member

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    Ahhhh I've been using this method for a while.

    What you can also do is offer one time packages for making money =]
     
  10. whatisthis

    whatisthis Registered Member

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    ...5 bottle of beer on the wall... -chuckle out loud

    Hey, I like the idea a lot. Used to make great money on eBay selling WP sites.

    Since this is dependent on the hosting, etc. up-sell, any advice on handling that point?

    Gonna go build a 2 or 3 right now.
     
  11. whatisthis

    whatisthis Registered Member

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    What do you mean, please.
     
  12. macdonjo3

    macdonjo3 Jr. VIP Jr. VIP Premium Member

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    Someone skipped math class in grade 5. :p

    Ah, jk Bryan, good post! :)

    Macdonjo3
     
  13. hurley

    hurley Newbie

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    What's the best way to phrase this in your opinion....I can't seem to think of anything that makes this sound worthwhile (aside from getting a free website)

    ------

    best post i've read in a LOOOOOOOOOOONG time as well btw.


    Additional posts on this topic:

    I can't post links so just search for the title which is posted below...

    ** Make $500/day giving people free websites
    ** "making money giving way free websites" MY STORY
     
  14. simasas

    simasas Newbie

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    Omg, its realy amazing, thanks. You are my HERO :D
     
  15. cyberflax

    cyberflax BANNED BANNED

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    Really nice share mate.
     
  16. SEOpie

    SEOpie Registered Member

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    great idea.. never thought of that :)
     
  17. Coastal

    Coastal Registered Member

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    Good post seems like something that could make some $$$.
     
  18. $ThisIsTheLife$

    $ThisIsTheLife$ BANNED BANNED

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    Yeah this method has potential with a few tweaks

    Good ob buddy
     
  19. OnlineGodfather

    OnlineGodfather Senior Member

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    Idea looks great but execution of it takes some time, its not that easy and you will have to work for it. But if you do it right you will get your reward at the end :)
     
  20. bryanon

    bryanon Executive VIP Premium Member

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    Absolutely!

    Then again, show me a turnkey idea/strategy/method that has the potential to generate five figures, yet doesn't require a fair amount of work to be put into it? ;)