New web host seeks advice from existing hosts.

S

Server Select

New member
Hello,

Let me introduce myself. I’m Eric Ellenbrook. I recently started my own hosting company. After researching, I found out it’s good to get your foot in the door by reselling, so that is just what I did. I’m have 9 clients. I’m ~$3 of breaking even with my $45/month bill. I have been around for roughly 3 months, so I don’t think I’m doing too bad! I don’t really know though., I could be doing bad. Hehe.

Moving on, I’m in need of some advice. I am getting fed up with not having control over my server, and not being able to guarantee certain things, and so on, and I’m really thinking about getting a dedicated server. This way, I can offer whatever uptime guarantee, certain features, faster support, etc.. However, I don’t know *nix, so that’s a small problem. I know some companies offer managed servers, and such, so that’s not much of an issue.

The main issue is this:

I don’t want to get on a dedicated, then fail, and be out a lot of money. So my main question is should I wait until I have more clients to switch over to a dedicated? Should I switch then try to get more clients? What is some advice you can give me into making the next big step? I feel very uneasy spending more money on something that is a gamble! I am not really a gambler, so it’s hard for me to make decisions about things like this. Any advice at all?
 
I was in your exact position just a little over 1.5 years ago Eric. I made the choice to wait and it worked out for me quite well. I decided to wait it out just for a little while longer, and I eventually merged with a new company and then was able to obtain my own servers. However, because of fair sucess, I was on the right track to buying into my first server without losing money and risking trouble.

I know that it's frustrating not having full control over your own server, but you need to make certain that you can afford the move both financially and securely. I'm going to let you in on a bit of a secret, all these places that claim managed aren't in most cases. You'd have to upgrade the management plans or spend a lot more in most cases for either an upgrade in service, or your own admin. Honestly, I recommend the latter route where you can purchased a box from SM (http://www.servermatrix.com) and pick up a decent admin for $50/month. I have two I can recommend that provided good service for the price back when we hired a few out.

You'll learn, or probably already have learned that just about everything you do in business is a risk. With this knowledge also comes the ability to weigh situations and pick the one that has odds in your favor. With the dedicated server option, are you certain that you won't fall flat on your face? Can you handle the load of probably paying a fairly larger sum as compared to what you pay now? Answer this questions and that will let you know about where you stand.

Finally, if you're unhappy with your current provider, you can always find a new one. There are many great companies out there, you just have to find them.
 
Denver,

First off, awesome name! :) Second, thanks for the reply. You gave me a lot of helpful information. I think waiting is my gut feeling. This will get me more established, and get more people to know about me! I'd love to read more replies, though. I want all of the advice I can get. I want to succeed in this venture.

Another question I have is advertising. Sure web advertising is good, but what are some good hard copy advertising medians I can use? ie, news papers, yellow pages, things like that. I'm curious as to know what are known helpers and what are known not to help with advertising.

Thanks so much for your reply, Denver. I hope for more from you and others. :)
 
Eric, definitely a great start for you to break even so fast.

I sometimes wonder what I would have done, how I would have entered the industry. My answers would be: I would have probably be following exactly your steps. Starting with a reseller account is what I recommend to most people who are curious about the business.

However, remember that web hosting is far from being a gamble. After all, it is a viable business model that works almost for everyone who applies logic and good management skills to operate such a venture. But I do understand the frustration and unwillingness to spend money, and Denver makes some great points. What I would personally recommend though is to stick with your reseller account until you generate enough profit in order for you to make that step with larger confidence. Until you have that cash to make the transition to bigger and financially exhausting operations in a safer mode.

That way you can certainly avoid unnecessary costs and put yourself and your clients in danger.

Hope this helps a bit. Good luck,
 
Eric, for local methods of hard copy advertising there are a few good options. My very first advice would be to get some good business cards printed up and ready to hand out. This can be done quite cheaply and will give you a professional presentation. Try to visit local businesses and let them know what you can do for them. You'd be suprised with how many think it would cost an arm and a leg to get online. They'd be quite suprised often you can establish a good website for less than it costs to make a yellow page ad.

Next, I would try some ads in the newspaper coupled with a few flyers either handed out downtown or even from business to business. As far as the yellow pages, you could try a listing, but unless you're one of the few locals, I wouldn't bother with a listing quite yet.

I hope that helps you out a bit more. Thanks for the compliment on the name as well, personally I like the uniqueness and I can't say I've ever been in the same room and had more than one respond to 'Denver'. ;)
 
NH-Benjamin said:
You have to spend money to make money!
Click to expand...
As much as I'd like to agree, I have to disagree :p There are a lot of things (real estate for example) that do not require a cent and you can make money from it. :)

"it takes money to make money" is a common myth in business. It does not always. though it probably does in the hosting biz ;)
 
You must log in or register to reply here.

Supporters

Back
Top