Since it's xmas, I don't have that much to do right now, so...

I've been thinking, but with SOOOO many small web hosts starting up, the market is just crowded and it comes to a point that when the prices are extremely low that you only make like $1 per client, per month, if even that... is it worth the hassle of all the time that you put into the site? All hosts must get loads and loads of support requests and sales questions, and these are usually answered by a one-man operation. I've got nothing against being a 'one man operation', but the fact that you spend all your time answering these e-mails for so little pay, is it really worth it??

Alan

When I opened my hosting compnay few months ago I decided o get some of my friends on it. They all wnated to do it with no pay. So all I do is set up the accounst and design the web pages well my friends or tech help out everyone. And I hear we have good customer support.

LOL, I've just thought... wouldn't it be nice if you could setup the perfect web hosting company, where you've got a support database of all the questions and answers that the clients need and then you don't get any support requests, everything just runs very smoothly, now that'll be nice :D... but not according to the good old Murphy's law.

Alan

I'm in the same boat. I've got 500 megs of space and I can pretty much stack domains onto it for free so I've been looking to maybe resell some of this out but it will cost $10 /month just for the merchant account and then loads of time just answering emails. There's heaps of hosting companies out there already offering cheap cheap prices starting at about $5 /month for a few hundred megs and unlimited email. Has anyone started up a new hosting company recently (within the last few months) and still thinks it's worthwhile?

No.

But it's probably just me.

I personally think the market is saturated. We started out a month or so and business has been slow to say the least.

Being a web hoster, is in my opinion your FASTEST method to becoming very rich.

Let me still tell you that you will not make your million within your first 6 months or 12 months, it will probably take 2-3 years of experience at LEAST in the web hostin business to make very good money or unless you already have a big capital.

other then that, if you have the experience, know the word customer support, know the word profit margin, web hosting is a dream come true.

There has not been a more easier service to provide then web hosting.

I would like to learn some of the tricks of the successful guys. As I've been building my business model for such a venture it's turned out that with my research and projections (naturally there is probably a significant margin of error here) it will take me 16 months just to meet my current income. After that the margins will drop significantly because it'll be real hard to handle support and administration with a one or two man operation.

I'm still crunching my beans and looking more and more into building a server farm and providing several niche services. It seems that it is easier to market to a specific customer base rather than the entire world. Most of the entire world doesn't want to pay attention to normal advertisements, but if you can demonstrate a service that someone needs specifically, they'll pay attention. Maybe my research is just totally flawed too!

Scott

The problem is how it is so easy to start. Any jabroni off the street not even knowing about hosting could start a hosting biz.

It's true that anyone can start a web hosting company, even I was thinking of starting one, a high class one of course, using servers at Rackspace. But it just didn't seem worthwhile to be spending all that time answering those e-mails. If I could have the web hosting company, get the profits without answering the large amounts of e-mails then sure, I'll be in it straight away, LOL.

With so many hosts, it'll be nice to have one host who just looks after their clients, as I've seen with many, MANY people... they go with one host, a month or two later they move to another host and so on, and the point is?? Why not just find one of the best web hosts and use them, pay the little extra and it'll save you a lot of time from moving your sites everywhere and losing traffic while moving DNS etc.

Alan

Originally posted by ho247
Since it's xmas, I don't have that much to do right now, so...

I've been thinking, but with SOOOO many small web hosts starting up, the market is just crowded and it comes to a point that when the prices are extremely low that you only make like $1 per client, per month, if even that... is it worth the hassle of all the time that you put into the site? All hosts must get loads and loads of support requests and sales questions, and these are usually answered by a one-man operation. I've got nothing against being a 'one man operation', but the fact that you spend all your time answering these e-mails for so little pay, is it really worth it??

Alan

Well

I could have a real job. And have to own an alarm clock. And put my son in daycare. And wear something besides ratty shorts and worn out tank tops and t-shirts (and don't even mention socks and shoes!!). Of course a real job would likely require a second car, and second car insurance, and daycare bills, and let's not forget "lunch with the guys" every day or at least several times a week.

Why, I just realized I'm saving thousands being unemployed er I mean self employed! Heck if my wife gets self employed we'd be rich on all the money we're saving!:D

Originally posted by CLEARVERT
Being a web hoster, is in my opinion your FASTEST method to becoming very rich.

Let me still tell you that you will not make your million within your first 6 months or 12 months, it will probably take 2-3 years of experience at LEAST in the web hostin business to make very good money or unless you already have a big capital.

other then that, if you have the experience, know the word customer support, know the word profit margin, web hosting is a dream come true.

There has not been a more easier service to provide then web hosting.

Nope, the web hosting industry is not the fast method to become very rich.
Done correctly, it can be profitable, but this requires A LOT of hard work, and time, and more than 2-3 years.

It's not just about a large amount of capital, it's about carefull planning, and good running of the company - that means you will have a much greater chance of success.

And current profit margins are slim with hosts undercutting each other right left and centre.

And once your a multimillion pound company, rough seas still lie ahead - look at what has happened to Verio; they have had to close a large number of datacentres to keep out of the red.

Regards
Matt

So whats the easiest way to be rich in the internet industry?:confused:

:P

Originally posted by dominet
So whats the easiest way to be rich in the internet industry?:confused:

:P

Hmm I'd say
1) Graphic Designer
2) Hosting
3) Programming

i am looking into starting my own email/hosting company.The one problem is time.I dont have the time and i dont know anyone who would be interested in helping me.

I agree... web hosting industry is just hard work, loads of time is needed and commitment.

MrLister, I like your list, but it doesn't really suggest that they are the easiest to become rich, if you've got the skills, you might not have the jobs... so they would only be true if you've got jobs/clients. For example, the hosting one, if you've got no clients, then you've got no revenue.

I don't thik that web hosting is such a big earner, there's just too many of you out there in the web hosting market. The only big earners are sites that are UNIQUE, ideas that haven't been done before, therefore, there won't be any competition.

Alan

I agree with Alan. A lot of people are differentiating only on cost. I don't think many hosters out there have taken any marketing classes. One thing you learn is that there are many more differentiators.

Now, back to thinking about those differentiators ... :bawling:

Originally posted by dominet
So whats the easiest way to be rich in the internet industry? First, you travel back in time a couple of years...

LOL, definitely! I love to remember how the Internet used to be, well how much you can earn with doing so much less compared to today :D.

It just ISN'T worth it anymore!

It's quite funny though, seeing those people who don't even know much about managing a server are running a web hosting business. All just in it for the money (well the little money anyway, LOL).

Especially with the people on the Internet today, they'll all very fussy... if there's one big problem with a host after say a few month;s of hosting with them, then that'll be it, you'll lose a client just because of one little hiccup.

Alan

Originally posted by JayC
First, you travel back in time a couple of years...

well i only got the internet this past summer so i cant really talk about the old times!!!...although i really wish i could

The fastest way to make money in the internet sector is to offer a product / service that is unique - no one has offered it before, and there is demand for such a product / service.

The difficult think is thinking up this product or service.

Regards
Matt

i have a few unique idea's in my head

Like what...? :D

trying to steal my ideas eh..lol


well when it comes to selling products online i have a product that could help anyone who has ever had a cast.

and my website idea's are top secret...lol

unique ideas really do not make money, the ideas that do make money are already proven ideas that are improved.

if its unique, it has a high failure rate.

If you think web hosting is not an easy business, you have not went into the real world yet :)

recurring money, easy service, like a golden egg tat plopped in 100,000s of peoples lap.

Originally posted by CLEARVERT
unique ideas really do not make money, the ideas that do make money are already proven ideas that are improved.

if its unique, it has a high failure rate.

If you think web hosting is not an easy business, you have not went into the real world yet :)

recurring money, easy service, like a golden egg tat plopped in 100,000s of peoples lap.

Notice I said a unique idea that there was demand for.