How Can A Host Make Any Money These Days?

May 17th, 2007, 11:30 am

With the low costs of hosting is there any room for profit in hosting anymore?

May 20th, 2007, 3:22 am

Hard to say. With the level of competition, many hosts are going bust.

May 20th, 2007, 4:59 pm

Sure there is. You're failing to realize that there are two types of business as far as price goes. There are the undercutters that provide piss-poor service and little guarantees but a dirt cheap price, and then there are the luxury/premium sellers that charge more but offer support, guarantees, and more.

TextDrive.com is a great premium host.
DreamHost.com is a great cheap host.
RackSpace.com is a great premium dedicated server host.

There aren't many business models that don't require a considerable amount of cash up front to start. Hosting isn't one of the ones that doesn't require cash. Sure you'll need to pony up the cash for some servers, infrastructure, system admins, customer support reps, a website, insurance, etc. If you do things right though, word will spread and you'll grow.

If you're talking about reselling space from some mass shared-hosting provider, then no, there's not really any money to be made. There's no difference between $10/month for 100GB of bandwidth and 20GB of disk space at company A and $10/month for 1000GB of bandwidth and 200GB of disk space at company B if they're the same company otherwise because most people won't use it anyways.

I own my own servers to host my websites, but I actually use dreamhost for bandwidth intensive stuff since they're great people and offer me premium level-3 bandwidth for less than I can get it here in Tucson.

May 24th, 2007, 5:56 am

I think dreamhost.com is suck for now

May 24th, 2007, 10:45 am

If you provide excellent service and excellent support; I mean really above and beyond, your customers will love you and recommend you to other people. Slowly your business will begin to grow and gain momentum. It won't happen overnight (usually) but it will happen.

May 27th, 2007, 3:40 am

cyberblue wrote:

I think dreamhost.com is suck for now

You had a bad experience with them?

May 27th, 2007, 4:47 am

Though there is huge competition in hosting business but host which provides you quality service can only sustain in the market.
Though some cheap host oversell their hosting packages for making money there are many webmasters who don’t fell prey of such host.

June 1st, 2007, 10:15 am

There is actually an overwhelming market for hosting customer's each and every month, however there are a ton of hosts out their now, competition is harder, but how you market your site will be the deciding factor (as well as good support/reliability!)

June 3rd, 2007, 6:31 am

Hello,
In USA there are too many Website hosting companies, maybe you should look around another countries...

June 4th, 2007, 9:21 am

TechNews wrote:

With the low costs of hosting is there any room for profit in hosting anymore?

definately yes.
for example hostgator is having 100+ staff, and 2000 servers currently.
with own office tower at houston, texas