The best way to start your hosting business?

Company:
For starters make sure you go with a company that has dependable servers that you can offer to your hosting clients and potential clients. Make sure you are able to have a support system inwhich your clients are able to contact you within a short amount of time whether it be a support number, email address or trouble ticket solution. If you provide great service your company will eventually spread like wildfire. Word of mouth is powerful in this industry and people are fed up with hosts that don't provide the service that they are paying for.

Marketing:
Make sure you have some sort of marketing budget that you spend every month. You need as much exposure to your hosting brand as possible. Advertise locally and on the internet. In the local market walk into small business shops (storefronts) and let them know who you are and what kind of service you can offer them. Most importantly explain to them how they could benefit from having a website online. If you have the budget to do so get some professional information packets printed for your company that you can give to people. Find a list of businesses addresses in your area and mail them out. Internet wise you are appealing to the global market. You have to be smart about how you advertise online. For each sale that you get make sure to come up with some sort of percentage basis on how much you would like to put back into advertising your company. If a new customer is paying $30.00 a month for hosting and you are profiting from $10 of those dollars take around 60% of that profit and recycle it back into advertising on google adwords or purchasing backlinks to your site. Definitely make sure to post often on forums and make sure they you have your hosting company website listed in your signature!

Hope this helps a little! :)
 
TheReason said:
Company:
For starters make sure you go with a company that has dependable servers that you can offer to your hosting clients and potential clients. Make sure you are able to have a support system inwhich your clients are able to contact you within a short amount of time whether it be a support number, email address or trouble ticket solution. If you provide great service your company will eventually spread like wildfire. Word of mouth is powerful in this industry and people are fed up with hosts that don't provide the service that they are paying for.

Marketing:
Make sure you have some sort of marketing budget that you spend every month. You need as much exposure to your hosting brand as possible. Advertise locally and on the internet. In the local market walk into small business shops (storefronts) and let them know who you are and what kind of service you can offer them. Most importantly explain to them how they could benefit from having a website online. If you have the budget to do so get some professional information packets printed for your company that you can give to people. Find a list of businesses addresses in your area and mail them out. Internet wise you are appealing to the global market. You have to be smart about how you advertise online. For each sale that you get make sure to come up with some sort of percentage basis on how much you would like to put back into advertising your company. If a new customer is paying $30.00 a month for hosting and you are profiting from $10 of those dollars take around 60% of that profit and recycle it back into advertising on google adwords or purchasing backlinks to your site. Definitely make sure to post often on forums and make sure they you have your hosting company website listed in your signature!

Hope this helps a little! :)

By the way pretty nice info about marketing, also it is possible to make 4p analys and SWOT ;)
 
niyogi said:
I say just grow organically and don't get greedy. Slow and steady wins the race.

Roj
In short that is the best plan to apply to any business. Growing slow and steady allows your to make better decisions and apply them effectively. :)
 
Eltahost said:
By the way pretty nice info about marketing, also it is possible to make 4p analys and SWOT ;)

Actually there ate 7P's in marketing, otherwise known as the 'marketing mix'. You also need to remember STP (Segmentation Targeting Positioning - meaning where you wish to be in the market, i.e if you are a niche host where on the ladder you want to be, at what time)
 
The best key factor you should start!! START LOCAL!!! That will be your best business and the best way to start off.. WOM is the best marketing tool you can have what so ever
 
Research, Research, Research. Market, Market, Market. Patience, Patience, Patience. If you can do that then you are off to a good start. Advertise locally too!

Good luck!

Ryan
 
TheReason said:
In short that is the best plan to apply to any business. Growing slow and steady allows your to make better decisions and apply them effectively. :)

This is something I don't think may folks can understand and it may be one of the best things you can do.

We have halted sales a few time to ramp up to meet the needs of the business.
 
ontime said:
This is something I don't think may folks can understand and it may be one of the best things you can do.

We have halted sales a few time to ramp up to meet the needs of the business.
Sounds like it has done pretty well for your company. It is also sounds like your company is gaining enough footing to have "staying power".
 
TheReason said:
Sounds like it has done pretty well for your company. It is also sounds like your company is gaining enough footing to have "staying power".
Well only time will tell but as it stands we are doing well for a newer hosting company, outpacing our 12 month business plan by three months.

But the real testament to how we are doing can only come from the clients we host and support.
 
ontime said:
This is something I don't think may folks can understand and it may be one of the best things you can do.

We have halted sales a few time to ramp up to meet the needs of the business.
horrible horrible horrible you should never ever do this you should always plan ahead and make sure you can always take on new clients ect.
 
Good marketing and sales team is the corner stone to any profitable business.

search google for marketing guide 101 for some great tips and advice.
 
Most new providers tend to offer local development services and obtain clients this way to fund the service and then tend to approach the hosting industry when they become financially sound through their current clients. Also setup a well detailed website and make sure you have a good technical support plan. Good support ensures customer satisfaction which is important to retain existing customers and gain new customers. Select a proper advertising media. Things like banner ad, word of mouth, buiness cards, link exchanges etc work effectively.
 
Definitely take it slow and remember its okay to be choosy with what type of clients you want on your server. Do not overload your server with accounts. Just because your server can hold 600 accounts doesn't mean you should fill it with 600 accounts. Balance out your load by evaluating new client sites to see how much of your resources they consume. Do not fill up your drive space to the brim as you will find yourself desperately trying to make room later for things. Definitely do as the other guy suggested, close the door to sales periodically (do not take on new clients) until you know you have your rear financially covered and can support the individuals you gave your word to.

Lets not forget about being real with the people you deal with, treat them as a human and how you would want to be treated as a client of your own service. Things looking fiscal for you? Have excess profits to burn on a new server to add to your arsenal? Think again, and coast out before getting yourself in a rush to expand.

Organic growth is key.;)
 
hostivo said:
Research, Research, Research. Market, Market, Market. Patience, Patience, Patience. If you can do that then you are off to a good start. Advertise locally too!

Good luck!

Ryan

Couldn't have said it any better myself. I would say that when starting a hosting company, we spent 75% of our time Researching and after that, the rest was cake.
 
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