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Thinking about starting my own web host company

Discussion in 'Web Hosting' started by moonie, Mar 31, 2009.

  1. moonie

    moonie Regular Member

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    Hey everyone,

    If anyone could offer some words of wisdom before I go ahead and do this, I would be grateful.

    I am interested in starting up my own internet hosting business. I found startyourserver.

    My plan with Bluehost is about to expire in 15 days. I obviously need a new host and was wondering about just getting a host (Bluehost, Hostgator) or getting a server and just having my host on there AND my hosting business.

    Is this a good idea? Profitable at all? I am not sure about what to do.
     
  2. thxflash

    thxflash Power Member

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    Hello. I would look into this more. It is a very competitive niche. I am elite with SEO work and I had a hard time breaking the niche. It is possible, you just have to have really low rates. And low rates=more customers<profit. I wish you the best luck though!
     
  3. moonie

    moonie Regular Member

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    Yeah. I can imagine. I saw your Web Hosting thing.

    I am not sure if I want to get started at all. I was just thinking that if I need a new host, I may as well look into a server too.

    Very double minded...lol

    And best of luck to you!

    Heres to a lot of sign ups!
     
  4. thxflash

    thxflash Power Member

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    I barely make it...I would post the rate but I already have an infraction. Ill PM you though. It's almost nothing. But you would be better off selling cPanel reseller hosting.
     
  5. blackhataffiliate

    blackhataffiliate Senior Member

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    Dude I have looked in to this as well and I just cant find enough profit there to make it worth my while. Good luck with your endeavor and check out PingZine magazine as a possible reference.
     
  6. 4alllifestyles

    4alllifestyles Junior Member

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    There are generally four kinds of hosts (and many variations of the four)

    Cheap - no frills, no support, etc
    Okay - Good Price, a decent panel
    Good - ala Hostgator, good service, good support, decent prices
    HandsOn - A little pricey but terrific service, tons of support, serious admin panel (cpanel and plesk arn't serious), very hands on with you.

    Being a web host is a very tough business... I'm in the HandsOn catagory but that's just me. There's a bunch on here that do one of the four basic kinds of hosting and some of the larger hosts are very good as well.

    If your not prepared to either be very very low priced or invest a whole crapload of money it may be better to go with an established hosting provider.
     
  7. bpaw

    bpaw Junior Member

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    I don't agree that webhosting is a niche, it is an industry. You have to find a niche in webhosting so you differentiate yourself from the thousands of other hosts. I use to operate a profitable web hosting company but as many will agree with, it is very saturated. Competition is pretty insane so you should have a very solid business plan.
     
  8. thxflash

    thxflash Power Member

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    It used to be an industry until everyone found out it was profitable. That was in the beginning.
     
  9. exeQutor

    exeQutor Registered Member

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    My advice, use VPS for a start from a mid-range provider that offers mid-range services. You can get a high-end VPS package with cPanel/WHM, 1GB/2GB(Burst) Ram, 50GB DS/1TB BW, all for $30 or less. Just look at WHT offers. I got one for $29.95 only with ClientExec last month. High-end VPS is better than low-end dedicated server.

    Use VPS, and not reseller/master reseller/alpha reseller, so you can move your clients with you when you're ready to expand to a dedi.

    You can double the budget I mentioned above and get an offshore VPS. Offshore hosting sells like crazy nowadays. Resell packages for cheap, but be sure to estimate your resources, especially BW (bandwidth). If you can get a Hybrid VPS, then better. You can then move to a dedi when you have the budget.

    But all these won't go in just a day. You can see your hosting company grow in a month or so depending on your strategy.
     
  10. ashilicious

    ashilicious Junior Member

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    I wouldn't let competition stop you after all, how many awful providers are out there with clients looking around for alternatives?

    Not to mention the small fact of the millions upon millions of websites that will be coming online in the next few years.

    If you are just 5% better than your competitors then you will be making money. Not to mention the fact that most of your competitors have no idea about a good value proposition or professionalism in their marketing

    Go for it IMHO... I might just join you.

    Ash
     
    Last edited: Mar 31, 2009
  11. polymorphs

    polymorphs Newbie

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    Find a reason to differentiate yourself from the competition and as a way to get customers. I know people who basically 'give' away a fully functioning site at a very cheap price as long as you sign up for their hosting. So blog flip, with hosting thrown in, and before you know it you have a customer base on which to build
     
  12. davetheave

    davetheave Newbie

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    Godaddy has retail accounts, SOOO much cheaper and better than Bluehost and hostgator!
     
  13. mrsix

    mrsix Power Member

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    good luck buddy it's a damn cut throat business
     
  14. davetheave

    davetheave Newbie

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    Definitely agreed, but it's not very bad at all if you're a developer or designer for local businesses. They're happy to pay an extra few for the personal touch.
     
  15. magiklair

    magiklair Junior Member

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    it's a tough business, but I wish you well..
     
  16. valwardon

    valwardon BANNED BANNED

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    Tough nah . Not at all. I sold turnkey websites and auto blogs and backended my hosting and have plenty of clients. It is definitely not competitive. Across all my servers I probably have around 300 clients.

    If you advertise the same way as everyone else expect the same results. Try thinking outside the box to get clients.

    As for everyone else quit giving miss information and saying it is tough. As it most definitely is NOT. Hell I even SOLD an ebook and backeded my hosting. Which gave me about 100 clients just from one Ebook.
     
    Last edited: Apr 1, 2009
  17. str8thustler

    str8thustler Power Member

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    i design web sites and have been looking to get into web hosting problem is that there is just so much competition it almost makes it not worth it. Now if you design websites and can put all your clients on your web host and have them pay you monthly then its worth it.
     
  18. spaceinvader

    spaceinvader Regular Member

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    i was going to say the same when i read the OP, its a nice little earner if your making the websites and selling them the hosting too
     
  19. scb335

    scb335 BANNED BANNED

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    My 9 to 5 is as a service tech for a small host so I can offer this, if you just jump online and try to compete on price you will fail. The large hosts have volume on their side, and kiddie hosts buy giant reseller plans then sell accounts for pennies because they're happy making $100 per month selling accounts at ebay and to friends. You can't compete on price with these and stay profitable.

    The other problem is trying to compete on service and customer support levels because starting out you have no reputation or creds in the industry. It's a catch-22 for new hosts who want to charge reasonable prices and provide quality service.

    The one place where almost anyone can get in and make some money without having to kill themselves is by not competing online at all. Get yourself a VPS or even a large reseller plan with a quality host (don't grab some $5 per month account for this) and then sell "managed web sites with hosting" packages to local small businesses in your city or town.

    This is especially profitable if you can do design work too, but even if you can't you can always setup client's sites on WordPress and find quality themes to offer them. Set it up so that you'll do monthly/weekly/daily updates (price accordingly) to the site for them, and handle all of the hosting/server issues on their behalf for a flat monthly rate.

    Then just hustle to get local businesses online through you. I set my sister up with a VPS through my company in December and she's doing this very thing right now. As of last Sunday when I talked to her she has 11 clients paying her $75 per month for the service, she only has to put in about 4 hours per week on all of the updates (so that's like $825 per month for 2 days total work), and she also charged each of them a hefty setup fee for initially putting their sites online because she designed their sites for them too.

    If you're good at talking with people and selling you could probably do a lot better than that, my sister is a total geek who has trouble talking with people face to face, so I'm sure someone who hustled and could sell could have had 2 or 3 times as many clients as her by now.
     
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  20. spaceinvader

    spaceinvader Regular Member

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    ^^top advice :) ...i am going to do something similar, just hate having to put on that whole fake, over polite business persona tho lol... i had to do it for 10 years when i worked for a big company.. if i had someone polite to take my calls for me id be all set.. my politeness reserves have long since run dry, i can only be myself now, however rude that may seem to some:D