How do I start a web hosting company?

  • kanexpo
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Post 3+ Months Ago

I was wondering how can one set up such a business? Web Hosting. I guess you need to buy Servers or so...can anyone quickly tell me how. thx
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Post 3+ Months Ago

  • Uncensored-Hosting
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Post 3+ Months Ago

The market is saturated. If you are going to enter this arena it is best that you have an established market base. Eg: Webdesigners are very well suited to adding this service. Their customers will need hosting and they are now best suited to filling that need. Anyone without a market base will have to compete with bigger and/or better advertising budgets.

Invest in a large reseller and/or Semi-Dedicated plan first. Be sure to pick a host that offers fully managed scalable services. This way you can learn as you go. Then study server administration, management and security in the OS's you intend to offer. Use the first six (6) months to a year to make sure you want to deal with the issues of running your own business, and/or providing your customers support. When/if you are ready you can make a smooth transistion to your first fully managed dedicated server. As your expertise and experience grows you can move on to semi managed and/or unmanaged services.

kanexpo wrote:
I was wondering how can one set up such a business? Web Hosting. I guess you need to buy Servers or so...can anyone quickly tell me how. thx
  • CartikaHosting
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Post 3+ Months Ago

Quote:
can anyone quickly tell me how


There really is no way to quickly describe how to start up a web hosting business. Contrary to popular belief, this isnt an easy industry.

If you're just starting out, I would opt for a reseller account and grow from there...

However, the best advise I can give you is not to get caught up in the pricing game. The market is saturated with hosting providers offering enourmous plans for next 2 nothing. This is 1) a bad way to build your business and 2) is really tough to compete against.

Pay the $'s for a quality provider and build your business on a solid foundation. Also, try separating yourself from the masses and sell based on value vs price - I think you will find this a much more enjoyable and profitable road to success...
  • davidaus
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Post 3+ Months Ago

Yups, i agree with you cartika, web hosting industry isn't easy.
  • kylebacc
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Post 3+ Months Ago

Uncensored-Hosting wrote:
The market is saturated. If you are going to enter this arena it is best that you have an established market base. Eg: Webdesigners are very well suited to adding this service. Their customers will need hosting and they are now best suited to filling that need. Anyone without a market base will have to compete with bigger and/or better advertising budgets.

Invest in a large reseller and/or Semi-Dedicated plan first. Be sure to pick a host that offers fully managed scalable services. This way you can learn as you go. Then study server administration, management and security in the OS's you intend to offer. Use the first six (6) months to a year to make sure you want to deal with the issues of running your own business, and/or providing your customers support. When/if you are ready you can make a smooth transistion to your first fully managed dedicated server. As your expertise and experience grows you can move on to semi managed and/or unmanaged services.

kanexpo wrote:
I was wondering how can one set up such a business? Web Hosting. I guess you need to buy Servers or so...can anyone quickly tell me how. thx


That's not quite right. You would never want to start with a large reseller plan. And a dedicated server? Don't even dream for now. Trust me hosting is hard as hell to get into. Your going to want to SMALL but QUALITY reseller plan to start out with. One that you can gradually get bigger with. Then, when the times right, you get a VPS (virtual private server). THEN MAYBE if you fill that up you can get a dedicated server, but even then, you may just wan to get a larger VPS.

At any rate, you need to look for a host that isn't selling the world for $2.99 you know? In the hosting business, like many others, you get what you pay for. I can't think of a better example for this saying than the hosting industry.

As for the business startup itself, you don't need a whole lot. A site, MAYBE automation software, a paypal account, a 2CO account. just a few things, other than that, the hosting business isn't that hard to startup. It's staying alive that's the hard part :)
  • pedrotuga
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Post 3+ Months Ago

i have two friends in that business.
About the servers... well, they just rent it... it is somewhere in a datacenter in the US... they live in portugal and have never been in the US.

The market is absoluted saturated online. They have their own base of clients mostly composed by company owners that don't know how to use a computer and would just pay somebody like them to have a webpage online no mmater how much does it costs, or if it looks good, or if its funcitional, etc etc...
Basicly they find clients rather among the neighbourhood than online... thats wise if we think that internet-analphabets don't know anything about webhosting prices.
  • MonsterCreek
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Post 3+ Months Ago

the market is saturated but if you do it correctly by offering quality hosting you'll make money. just market your hosting company correctly. it isn't something for beginers though.
  • musik
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Post 3+ Months Ago

kanexpo wrote:
I was wondering how can one set up such a business? Web Hosting. I guess you need to buy Servers or so...can anyone quickly tell me how. thx


It is a difficult business to be in, from my experience it is much better to be a designer and have your own hosting you sell to customers, and if you get other sales, great, if not, you're always steadily increasing your customer base anyway through your design customers.

If you have dreams of it being a quick money making industry you will be sadly disappointed, it takes a long time to build up a reputation unless you have funds for a lot of advertising and can saturate the market.

I am not convinced 'quick answers' are going to get you anywhere and it comes across as though you have not even created a comprehensive business plan as a foundation for your desire to start a business, without this you risk becoming another fly-by-night hosting company, and there are already too many of those...
  • yuriythebest
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Post 3+ Months Ago

not that I have any experience in we hosting (just from the consumer side), but I sure think the best way tro earn money is through carefuly managed free hosting with banners. SUre there will be all sorts of problems like settng it all up in the first place, self-promotion, spam, etc, but in the end it would be like getting money not just frome one website, but from countless ones. The trick will be setting the right space and bandwith ammount and the inactivity limit. Then simply submit your engine to countless free isp guides like clickherefree.com and you are all set!
  • rDolay
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Post 3+ Months Ago

Quote:
was wondering how can one set up such a business? Web Hosting.

:lol: kanexpo is asking that question, not asking how to run a web hosting business or how profitable is it, just asking how to setup!

It depends on your pocket money kanexpo :oops:
, according to it first decide what type and how you can provide hosting accounts: from your own builded datacenter, leased racks or by reselling..
Then apply for your business.

Reply seems so easy but the qustion also asked so easily too.

When it become about the success, it is not impossible but do not dream any profit at least for the first 2 year.
  • musik
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Post 3+ Months Ago

dolay wrote:
Quote:
was wondering how can one set up such a business? Web Hosting.

:lol: kanexpo is asking that question, not asking how to run a web hosting business or how profitable is it, just asking how to setup!

It depends on your pocket money kanexpo :oops:
, according to it first decide what type and how you can provide hosting accounts: from your own builded datacenter, leased racks or by reselling..
Then apply for your business.

Reply seems so easy but the qustion also asked so easily too.

When it become about the success, it is not impossible but do not dream any profit at least for the first 2 year.


I am not aware if you run your own web hosting company dolay, but if you do then you will know that there are all kinds of facets to owning a web hosting company, and it is not as straight forward as 'applying for a business name - buying some hosting to resell - build a website - put up a few posters and they will come in millions'.

I don't see that anyone has gone off topic and all replies have offered a lot of advice.
  • Casey
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Post 3+ Months Ago

I've been in the same situation, and here's a little advice:

If you're new, start a shared reseller program. You won't intially have to manage the server, and they are very cost effective. You need to shop around carefully for one which offers a plan which could be profitible for you. I can give my host's name if you PM me (I don't want to post it for everyone) They usually run about $20 per month

Next, once you establish a solid client base, I recommend purchasing a server and renting a co-location facility. Colos are connected to internet backbones so they offer you the power of a multimillion dollar facility for a small monthly fee ($60-70?)

Also, find a niche. You need to seperate yourself from the competition somehow.

Develop a business plan. This is more important then you think.

It's also very hard to get your foot in the door if you aren't a web designer, as you will incur a monthly loss until you have enough clients to cover your variable costs.

I can give you more detailed info, but I'm getting tired of typing, sorry...
  • Psilokan
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Post 3+ Months Ago

Just my two cents here, start small and build up. Myself I offer hosting to my clients, as almost everyone who wants a website needs a host as well. Right now I just add them to my plan at my webhost, but once I get some more clients I would like to upgrade to a dedicated server. One that is managed for me, but I have the ability to log into and manage myself if and when I need to.
  • Axe
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Post 3+ Months Ago

Honestly, if you're asking how to get into a particular business (any business), you're not ready to get into that business anyway.

Just do whatever you're doing, and then look at things you can do that you already know something about.

If you want to learn about web hosting, simply hit Google and start doing some reading.. then spend a few more months doing more reading.

If you enter any business (even if the market isn't as saturated as web hosting), you're doomed to failure if you choose to enter into it before you know anything about the subject.
  • Casey
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Post 3+ Months Ago

Quote:
Honestly, if you're asking how to get into a particular business (any business), you're not ready to get into that business anyway.


I don't think that's really true. I think kanexpo's first step should be to ask people who are in the field (kinda like web hosts on a message board :) )

I mean, I'd like to get into Real Estate, but because I don't know how to get started doesn't mean I'm going to turn away from it and never look back.

But I think what Axe is trying to say is that if you rush into this, without careful contemplation, you will ultimatly lose money. You honestly need to know a LOT about Linux administration, networking, business, and more. If you don't have any formal training, you'll probably want to at least take a few classes somewhere before you even attempt to host sites.
  • Axe
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Post 3+ Months Ago

If you're still at the stage where you're asking how to get into it, you don't know enough to get into it, basically, yeah, don't rush into it.

Best way to break into any business is to go and work for a company for a couple of years that's already doing it.

Learn what works and what doesn't. Learn from their successes and their failures so that you don't end up making the costly mistakes yourself.

There's probably not many classes on running a hosting company, but a good place to start would be to setup a Linux box at home. If you're on broadband, put a site on it.

Try to keep the box secure, up and running, and quick. Try to hack it from another machine on your LAN to try and keep it secure.

That's about the cheapest way to learn how to do it without making too many costly mistakes. Because if you go out and lease servers, or colocate boxes, and all your clients' sensitive data (credit card details, customer databases, etc), fall into the hands of somebody malicious, you're the one responsible, and that gets REAL expensive in court.
  • sannsar4
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Post 3+ Months Ago

get the think of an expert and be shure of what u du man thats more important as for hosting there are too many hosting companys you have to had an strategy to survuve if not :( ure down
  • kanexpo
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Post 3+ Months Ago

thanks for all the great infos.

right now i am thinking of buying a reseller plan for 300$ the year. All the features are great, and unlimited mostly.

Its a reseller plan, which i am so tempted to buy (eventho it might have no use at all)...

it has 12,000MB - 100Gig bandW.

I might add my own pages to it, but... do i really need it? I dont know, and getting into the host business is a pain. the competition is too big.

But besides of goign into business with that, i am so addicted to looking at host plans!!!! i always look at those host plans and buy useless domains. I need help! What can i do? I love looking at hosting plans. Maybe its a sign that i would like to be in that business...
:shock:
  • Mr.X
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Post 3+ Months Ago

Well I dont think you can become rich with a hosting site, because the most people dont want to pay for it. They scan for ftp pubs and tag it and put their site on it. And there are a lot of good free hosting sites (a lot of space no banners etc etc)
  • Axe
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Post 3+ Months Ago

Most professionals DO know that they should pay for it. Companies do not want to be on some free random hosting space Mr.X.

They want support, reliability, and somebody accountable if their site goes down.
  • placid psychosis
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Post 3+ Months Ago

The goal of any true professional is not to get rich anyway. If you want to get rich quick, invest in lotto tickets, and good luck.

A true professional will start a business because that is what they are driven to do. The business will often become that person's "baby", and if properly tended can become VERY successful in the hosting field.

A recent example would be RackShack, now EV1 Servers. I was with these guys when they only had a handful of customers, and Robert Marsh tended to it and grew it into one of the larger, more successful Internet hosting companies out there.

If you focus on quality service and awesome tech support, you can actually get pretty far in the industry without having to drop your prices to razor thin profit margins. Trust me, serious businesses know that sometimes the extra few dollars is greatly worth it for quality.

Just bear in mind not everyone counts fame and fortune as success. Many just like to see thier "baby" survive and grow into a mature entity (which can be years down the road). The money is just a perk.

But no, you're not going to make much by hosting personal sites. This is why the personal site market is saturated with crap service and advert-laden sites. It's just not profitable.
  • mabdr2
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Post 3+ Months Ago

It takes a lot of work.

I personally put in about 16 hour days to get our company growing. Never ever think that you will be an overnight success. It takes going out to conferences, meeting people in your geographic market, gaining their trust, and above all NEVER letting them down.

When you make a promise to them, match or EXCEED their expectations.
Go the exta mile when trying to get someones hosting business.
  • cpserveradmin
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Post 3+ Months Ago

Hi :)

As it's little difficult business technically for a newb, I would suggest to outsource the technical support for it. The cPanel Servers are easy to troubleshoot and admin comparitively others. If you go for any cPanel server then it will be easy to start selling the hosting plans to the customers. You just need to manage your site that will let client know about your web hosting plans and also need to manage the billing/sales area for those too. It's easy to do so.
I'm a RHCT ie. RedHat Certified Technician having Advanced Intermidiate knowledge of webhosting technical support. I'm working with a web hosting technical support provding company since last 2 1/2 yrs.
I'm very familiar with web hosting technical issues and able to manage the cPanel servers very efficiently.
For more details, I would suggest to contact me at cpserveradmin@gmail.com and I'll be happy to provide you more info on web hosting business/technical support.


Thank you .. !

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