How to survive the first year offering web hosting services

SenseiSteve

HD Moderator
Staff member
So many entrepreneurs in the hosting industry start out on a shoestring because the entry to launch is so low. What do you recommend for them to stay afloat in their first year of hosting?
 
Start small

To start it is best to start off small with a reseller account and also a client management system like WHMCS.
The idea is to build up a strong client base and reputation, this will be a slow process (web hostings is not a get rich quick business), so take your time and don't rush things.
Maybe after 6 months look at a VPS (if you have no knowledge then get a managed VPS), but you could get a cheap VPS to learn on before getting one for production use.
If you feel you are not ready to move to a VPS then don't, just move when you are comfortable too do so
 
From my personal experience persists is key.
It all comes down to you personally.
Everyone recommends using reseller hosting which is great and affordable if your starting out.

I started off on a VPS because I wanted to push my skill set in that area so the VPS hosting option was the one for me. I wanted the hosting to be run and managed by me giving me more options on how we host and secure our servers. When using reseller hosting all of this is done by your host and doesn't give you much room for configuration. So you have to take these things into account before purchasing your hosting.

What do you want from your hosting company?
What makes you different from the others?

You have to look at cash flow and what you can spend, If you can't afford or don't have the patience or know how with a VPS or Dedicated server then reseller hosting is the next best option.
If you can't afford to keep your website online long enough for you to gain clients there there's no point even trying. Look at what you can afford and how long it will last you? How many clients/months will it take for you to break even?

One thing I've only just learnt is pricing.
Too Expensive and people don't want to spend.
To cheap and you attract the wrong attention.
 
Also one more vital thing

Terms of Service

Whether you start with a reseller plan or a VPS, look and read your host/provider TOS/AUP, etc. as these are what you have to follow and adhere to, so these are the same policies your own clients have to also adhere to and follow, so the easiest thing to do is copy and paste the policies you have to follow (making sure you change all references to your host/provider with you own business name).
 
The most important thing to do is scale everything, start with an inexpensive reseller account, start with free marketing by participation in forums, etc. then scale up accordingly. This way you will not feel like youre running a liability and always have a good feeling about your growing business. I had made a documentairy about my experience starting and ultimately being a successful host shown here ->
 
The most important thing to do is scale everything, start with an inexpensive reseller account, start with free marketing by participation in forums, etc. then scale up accordingly. This way you will not feel like youre running a liability and always have a good feeling about your growing business. I had made a documentairy about my experience starting and ultimately being a successful host shown here ->
Exactly and good Video.
I always tell people they should start small with a reseller account so that they can build up a reliable client base, a reputation and brand awareness
 

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