How to Start a Web Hosting Business

Posted by Admin on 1/21/13 at 7:26 PM in ,,
Start Your Web Hosting Company in a Small Budget

Most of you, reading this article, will have your own websites hosted on some web-hosting retailer's server and know the basics of webhosting and how it works. If not, then you can just read our article on Basics of Web-Hosting and Associated Terminologies.

Today we shall talk on how to start a web-hosting business and be your own bosses. That's right, it time for you to host others websites and build your own online brand.

Starting a Web Hosting Business

Requirements to start your own webhosting business

Well the requirements are pretty basic. First and the foremost is a small budget, I really mean small. Then a proper business strategy to bring yourself some customers, asking two or three friends to sign-up for your service won't actually get you any profits. Third comes dedication and patience.

How to start a webhosting service

What we will discuss here is not something like setting up your own servers, hiring big head geeks, high profile networks etc. We will simply talk about something called Reseller Hosting. Sounds familiar?

Reseller hosting is a major online business trend through which possibly anyone can start and own a self web-hosting business. Big web-hosting companies out there offer a considerable amount of disk space, in their servers, and bandwidth for reseller hosting customers  along with billing softwares at a monthly fees. You get your own powerful control panel and they even provide free designs for your web-hosting website. That eliminates the entire 'know to code' thing, so this is what I meant by 'possibly anyone can start this business'.

Buy reseller hosting from the top-grade Hostgator at a 20% discount

How Reseller Hosting Works

The basic idea of reseller hosting is really damn simple. I'll give you ten chocolates for $10 and you do whatever you want with it. Business minded people like you and me think of selling these chocolates and making a profit. Right?

That's what it is, as said, they'll provide you certain amount of space and bandwidth in their servers and will charge you a monthly fees for that. What you have to do is, sketch out your web-hosting packages and plans, set disk space and bandwidth limits for each plan and attract customers. They buy web-hosting from you, you bill them monthly, you pay your reseller hosting provider their fees and you enjoy with the remaining profit!

If you plan to change your reseller hosting provider in the future, then all the websites hosted  by you will be safely transferred to your new provider without affecting any of your customers. So you've got flexibilty in choosing who does the back-end works for you.

But things aren't as easy as it sounds. There are thousands of webhosting providers out in the web world and it's upto you to make your customers know what they should buy service from you rather than the already established 1000+ others.

As every business has profit and loss, the same goes for this. If you don't get customers and if the monthly billing is less than what you pay your reseller provider, then you'll incur a loss.

Well, that's it. Now it time for you to test your business strategy.

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