I want to start a web hosting business. How do I start?

I always wanted to start a business, in the web hosting industry. I installed server 2003 on an old laptop I had, played with IIS and Active Directory.
I also played around with linux, and Apache. I’m more experienced on Apache, than IIS.

I want to manage customers, websites, and feel cool. I wanted a business like this since I was small.
I’m 17 now, a senior in high school. I want to do networking and security when I get older.

I would like to start a web hosting business. It would make me harder worker, and then money to look at and tell myself I did a good job.

I see web hosting companies all the time, not providing support all the time. :/ Once in a while, they log in to their support, then back out. I’d like to be the host that does provide support all the time. I sold Microsoft keys a while ago on eBay, and in two weeks – I managed to sell over 100 keys, and got ,200. I haven’t had one person say my support was bad. They all thanked me for helping them out right away, after buying the key.

So, anyhow, does anyone know where I can start to start my own business?
Should I buy a dedicated server, advertise, gain customers. Then when I get money, I can advertise more, buy a bigger server.
With more and more money, I can buy my own server and bandwidth and host at my house.

Does that how other businesses start? I have about 00 I can use to start my business, but I would only like to spend 0 of it now because I need to look for a car.

Chosen Answer:

Hi Billy. I used to have my one web hosting company. Even though hosting is a very competitive industry and is held by the main companies (host gator, godaddy, etc.), it is still possible to profit from this sustainable industry. You either need to be promoting to a niche group of people (small businesses, bloggers, etc.), our you need to have an outstanding service. You are on the right track with the Support idea, but keep in mind, your customers can be from anywhere around the world. Do you really want to be answering questions at 4 in the morning? Of course, there are ways around this such as getting a 24/7 support center, or there is an easier way which I’ll get to later.

There are two main ways you can start a web hosting company. The two ways are a reseller hosting company, or a from scratch company. Reseller hosting is very cheap and can easily get you into the industry without the huge tasks of starting from scratch. Although the money made from reseller hosting varys, reseller hosting gives you an option to grow your company whenever you feel it is time. Plus, you will already have some money and a good customer base by then, so it will make the transition easier.

If you would like to start reselling, go to resellerspanel.com. Most reseller programs charge you a fee to start, and you are not garunteede to make any money. Resellerspanel, however, is different. First of all, when you sign up for free, they give you a free website, domain name, and web hosting. Basically, you can sell different hosting plans such as shared hosting, semi dedicated, and dedicated. Resellerspanel already has established a “wholesale” cost. So let’s say their wholesale cost for shared hosting is a year. You, markup your own price to 0 a year. Now, you start promoting this plan on your website. You do not have to pay resellerspanel at all, however, when you make a sale, you keep the markup, and they take the “wholesale” to cover their expenses. Some cool features and support that resellerspanel offers you, is a free support system for your clients. Meaning, you will never have to be the support person. Instead, your clients call the phone number, and are directed to a 24/7/365 support system that is run by resellerspanel. They know everything. Also, to make your own promotional site look good, they let you brand the site with your own brand, making it look like you are not a reseller, but a well establshed company. As long as your clients keep renewing, you will make that each and every year from that one client. Think if you have thousands of clients.

2. The second way to start is the hardest way. I would not recommend it for people starting their company. You have so many upfront costs, that ads up to thousands if not hundreds of thousands of dollars. Still, your chances of making money is equal to reselling, I’d even say that you have a better chance making more money in reselling, since you do not have to take care of anything. If starting from scratch, a dedicated server is far from enough. Average companies that aren’t even well known, have their own data centers, filled with hundreds of dedicated servers. The big name companies have data centers in about every part of the world. You also have to pay for a support center, unless you want don’t want to sleep.

I would strongly recommend reselling at first, and then later, once you have a strain client base and some money to purchase your own servers, you can branch off into your own true company.
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on: 16th March 12

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3 Responses to “I want to start a web hosting business. How do I start?”

  1. Aaron Hockey says:

    Hi Billy. I used to have my one web hosting company. Even though hosting is a very competitive industry and is held by the main companies (host gator, godaddy, etc.), it is still possible to profit from this sustainable industry. You either need to be promoting to a niche group of people (small businesses, bloggers, etc.), our you need to have an outstanding service. You are on the right track with the Support idea, but keep in mind, your customers can be from anywhere around the world. Do you really want to be answering questions at 4 in the morning? Of course, there are ways around this such as getting a 24/7 support center, or there is an easier way which I’ll get to later.

    There are two main ways you can start a web hosting company. The two ways are a reseller hosting company, or a from scratch company. Reseller hosting is very cheap and can easily get you into the industry without the huge tasks of starting from scratch. Although the money made from reseller hosting varys, reseller hosting gives you an option to grow your company whenever you feel it is time. Plus, you will already have some money and a good customer base by then, so it will make the transition easier.

    If you would like to start reselling, go to resellerspanel.com. Most reseller programs charge you a fee to start, and you are not garunteede to make any money. Resellerspanel, however, is different. First of all, when you sign up for free, they give you a free website, domain name, and web hosting. Basically, you can sell different hosting plans such as shared hosting, semi dedicated, and dedicated. Resellerspanel already has established a “wholesale” cost. So let’s say their wholesale cost for shared hosting is $30 a year. You, markup your own price to $100 a year. Now, you start promoting this plan on your website. You do not have to pay resellerspanel at all, however, when you make a sale, you keep the markup, and they take the $30 “wholesale” to cover their expenses. Some cool features and support that resellerspanel offers you, is a free support system for your clients. Meaning, you will never have to be the support person. Instead, your clients call the phone number, and are directed to a 24/7/365 support system that is run by resellerspanel. They know everything. Also, to make your own promotional site look good, they let you brand the site with your own brand, making it look like you are not a reseller, but a well establshed company. As long as your clients keep renewing, you will make that $70 each and every year from that one client. Think if you have thousands of clients.

    2. The second way to start is the hardest way. I would not recommend it for people starting their company. You have so many upfront costs, that ads up to thousands if not hundreds of thousands of dollars. Still, your chances of making money is equal to reselling, I’d even say that you have a better chance making more money in reselling, since you do not have to take care of anything. If starting from scratch, a dedicated server is far from enough. Average companies that aren’t even well known, have their own data centers, filled with hundreds of dedicated servers. The big name companies have data centers in about every part of the world. You also have to pay for a support center, unless you want don’t want to sleep.

    I would strongly recommend reselling at first, and then later, once you have a strain client base and some money to purchase your own servers, you can branch off into your own true company.

  2. Yousaf Khan Jee says:

    Easiest way is to signup for resseler hosting, sing up @ http://bit.ly/9tUyp5

  3. benjamin says:

    Hello,
    A webhosting business is a tough one to crack. It has become very competitive with many new businesses who turn out to be scams. Thus consumers look for a reputable and long lasting host.

    This might be an issue for new companies however if your company is an honest down to earth company it isn’t impossible.

    You need to consider what do you want to focus on. It might be better to target a specific niche where you’re experienced in so you can offer your expertise as a bonus.

    You also need to consider pricing and with $200 it probably isn’t enough to start a webhosting business. You need licensing and server.

    I personally would start off with a reseller hosting on another host. This way some even have the option to offer customer support. Many people now expect 24/7 customer support even when you’re sleeping your customers at the other end of the world will still want their support.

    Please do get in contact with me at:
    benjamin_canada@yahoo.ca

    I’m confident I can help you out and give you more detailed advice. I have vast experience on web hosting and marketing. I’ve recently created my site for such purposes to share what I know:
    http://www.findahost.co

    Regards,
    Benjamin

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