Start a hosting company

perfvps

New member
In our days are a lot of hosting companies. Does it really worth it to start a new one ? Which are the chances to have success ?
 
Yes it is! But RoI will be slow and low, unless you are able to crack a niche market. Question is whether you want to start part-time business or full time business ?

Unless you have a huge investment to be spent on marketing & support and understand the hosting business, its better to start small. However small you may start, you would need at least $1000 including budget for 6-9 months, till you turn operationally profitable or at least breakeven.

You may choose one of the many providers (reseller, vps & dedicated) who provide end-user support for their resellers. Identify the best among them and start. Choose the one with good reputation and do remember that all three types of hosting need not be at the same place. Always choose managed vps/dedicated, regardless on how good you are at technical side. Route your support directly to the provider or have a help while you are sleeping. Don't ever compromise on support.

Don't hesitate to switch providers, if you find recurring issues.

Use forums and social media for your marketing and discover some guerrilla marketing tricks.
 
Yes a lot of new hosting companies come up each day. From building a professional website to having a secure billing system, legal requirements, marketing etc. is involved.
 
Your success will mostly be related to your business plan and if that plan is working. There are many variables when it comes to a hosting business such as the niche market you are targeting, how much competition, what differentiates you from your competitors and is your marketing plans working to get your business in front of your target audience.
There are many more variables, but at a high level, those are good places to start thinking of a business plan.
 
There are lots of candy companies, do we need a new candy company? Yes, if the market demands it!

If you see something that a company is not utilizing to it's fullest potential, and you can deliver it at a price that people will purchase, then there's no reason NOT to start the company/product.

Keep in mind, depending on the business, you don't necessarily have to make money initially - but that'll be determined on how big of a floating fund you have (personal, bank or investor) and how long before your ROI.

At the end of the day, you shouldn't let competition be the reason you don't start - unless of course you don't believe you can be as good, or better than them. In that case, yes, forget about it.
 
Web Hosting is a profitable business no doubt at all, but it depends how you start up your hosting journey and implement the ideas. It takes few months or a year to generate the revenue you are expecting. We have seen lot of hosting companies coming and out in just a few months because they could not survive in the market, you need to make plans and work on it day and night. There are several articles in the google you can refer how to grow your business online, but at the end it totally depends how much time you spend and work hard to achieve the goals.
 
Yes, youare right, there are a lot of business in this world, but you can succed too, if your business plan is well-based
 
Web Hosting

This is an industry were you can rent your servers and get paid for it. Web hosting has set up some trends in the growing make. Starting a web hosting and achieving the success would be a greater challenge.

Completely Depending on the plans you are executing on your business, IF you do not want to invest on the servers, and also do not know how to manage servers then RESELLER hosting can get you in the this stream
 
I think it's worth while getting into the business if you know and understand your target market. If your going into business to just get anyone you may have a harder time with that.

Just something to keep in mind.
 
Indeed! You must know your target market and what makes your company unique. It involves a lot of hard work but it can be very rewarding when done properly.
 
You can definitely start a new hosting company though there is immense competition.

Few things to notice -

You should be able to differentiate your business from others. Try to find out the gaps in the current industry and introduce solutions to it.

You should have an alternative source of income. Do not completely rely on new business.

You must have an expert team.
 
It can be very profitable, I have been in the industry for 20 years.
There are around 2 billion websites and counting and they all need hosting
Web hosting is a very competitive industry but if you do it right and treat your customers well you can do very nicely
Start small and grow your business as you get more customers. Start with a simple reseller account and upgrade to a larger plan as you go. Once you have over 500 to 1000 customers move to a dedicated server. This will give you more control and be cheaper but you do need the knowledge to self manage a dedicated server with root access and install all software yourself or hire someone to do it for you and learn that way too
You can use one of the many templates available to build your website also. Make sure it has a clean look and is nice and easy for your customers to navigate around.
 
Yes, there is many hosting companies but we are not all the same. Each has different clients.

* get servers and find where you will place it maybe collocation what the best fit you
* you can become RIPE member to get own IPs or you will lease
* make a web and start to find clients who looking for servers as you offer.
 
The server business is in saturated condition I guess. However, you can shine in any business with new innovations in your service.
 
Hosting Company

Starting a web hosting company is not easy because you have manage server domain and other stuff also provide the customers services. if you have a good team or friends who have hosting knowledge then you start a hosting company. but remember there are too many competitor in market who are providing best hosting services for years.
 
I would say that you need at least one member of staff who knows absolutely everything and how it all ties together in its entirety.
If you don't have that you really shouldn't start.
Once you have that you need to set about teaching others what you/they know, not necessarily the same things, as they can teach each other.
It's a very hard life to run things as a single person unless you are honest with your customers and say, "no support when I'm asleep"
 
It's a very hard life to run things as a single person unless you are honest with your customers and say, "no support when I'm asleep"

I ran mine for 18 years as a one man band, all my clients were made aware of this and that i was available from approx. 8am til midnight, but if i was contacted by a client and 11:50pm i would not say sorry contact me in the morning, i would help them out even if it mean me staying up until 5am or longer.
The longest i stayed up for without sleep was 42 hrs and even then i just slept my normal 5 hrs before i woke up again.
 
I understand what you are saying, but I'm either making enough money to hire someone, or it's not worth the mental health issues that arise from staying up all hours.

Your customer suffer either way!
 
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