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View Full Version : Starting A Hosting Company


vandelay
02-02-2006, 05:04 AM
Hi there,
I only discovered this forum 2 days ago, Ive been reading a lot of old posts and doing searches and I have come to the conclusion that Httpme is a well recommended host.

But Im a bit concerned about costs, to me it seems hard to become profitable.

For example the Plan 1 is $35 for 2gb storage and 20gb bandwidth and you can host 50 domains. Lets say I do host 50 domains so that equates to 40mb storage and 400mb bandwidth for each of my customers.

Say if I charged $5 per account I would make money yes, but no one in their right mind would go for a deal so crap(I know I wouldn't!). Youd have to be a douchebag to pay $5 for 40mb storage and 400mb bandwidth!

Please tell me I'm missing some vital piece of the puzzle here!

Cats-Computing
02-02-2006, 05:45 AM
Don't try and compete on price - you will have to offer something the big guys can't, find your niche market.

SSHocker
02-02-2006, 06:00 AM
If you intend to make your income solely from hosting, you might want to consider going with dedicated servers, it's capital intense for sure. If you want to make the money you have to outlay capital first.

With all the competition out there these days, you will find it hard going buying your bandwidth and space at those rates.

If you want to make good money out of hosting, its there, but view it as a long term thing. If you are expecting to make money in this game fast or with no capital, you might be in for a rough ride.

As Cats-Computing mentioned, you will do better by offering niche services, especially with your local market. Good service always is always a winner.

Oh welcome to WHT :)

bluedreamer
02-02-2006, 06:03 AM
For example the Plan 1 is $35 for 2gb storage and 20gb bandwidth and you can host 50 domains. Lets say I do host 50 domains so that equates to 40mb storage and 400mb bandwidth for each of my customers.

How do you come to that? 800mb for each domain hosted, that is an aweful lot considering that most sites probably only use 10-50mb. I did a greakdown of disk usage for all my hosting customers the other day, approx numbers...

0-25mb - 26%
25-50mb - 38%
50-100mb - 22%
100-250mb - 9%
250-500mb - 5%

And only 10% of them burn more than 2.5gb per month.

vandelay
02-02-2006, 07:40 AM
I hear ya, its all about local niche markets and good customer service.

Running my own server is a bit out of my league though.

HosteXel
02-02-2006, 07:55 AM
There are some amazing Shared Reseller deals out there. Heart Internet offer the best value and most popular package available in the UK. Their particular package impedes no limits on you either.

AcidNet
02-02-2006, 08:52 AM
I was with heart Internet, they do offer a good deal. But UNLIMITED does not exist, also they use there own control panel so you are limited in what you can do.

Lpal-Jay
02-02-2006, 12:27 PM
well how about this. you don't have to sell all 50 domains, you can sell less say like 20 (with them getting more space and bandwidth) and try make a bigger profit and then when you need the space and bandwidth upgrade. Just an idea really, but i think you can get a better plan with "unlimited" domains.

build-a-host
02-02-2006, 03:30 PM
Its not always about the price, the quality should be taken into concideration also. "You get what you pay for" , in most cases!

repoman
02-02-2006, 03:46 PM
well, to be truthfull the deal you got, isn't the best,

c3r3br0
02-03-2006, 03:46 PM
You don't want to handle 50 domains by yourself.

Try to get 5 clients and treat them well, and setup your plans/prices to double your money. Now, this is not something you'll be able to do on the Internet, you'll have to some real-world selling.

webbist101
02-03-2006, 03:48 PM
Web hosting is not all about the price. Yes, there's those come and go hosts out there that will offer a million GBs for $3/month, but don't make yourself one of those. Remember, you get what you pay for. If you can offer the quality worth of what you're offering, then you should have no problems.

DreamHost-MikeS
02-03-2006, 05:25 PM
Say if I charged $5 per account I would make money yes, but no one in their right mind would go for a deal so crap(I know I wouldn't!). Youd have to be a douchebag to pay $5 for 40mb storage and 400mb bandwidth!

There must be a lot of douche bags on the internet, then.

For only being on this forum for two days, you certainly have embraced the 'new user' mentality that you should get as much for as little possible, with the best level of customer service.

Spend some more time reading the forum before you take the plunge into the industry. Look around and you'll find that hosts charge a variety of prices for their services, and successfully.

Shaw Networks
02-04-2006, 04:52 AM
If you've found a host that you're convinced is of quality, then I would recommend that you go with that host rather than fret over the slight extra cost. As you'll find from countless searches on here, hosting customers that go for the cheapest host continually get burned.

PickleZone
02-04-2006, 03:43 PM
Hi All -
I have to agree with a number of recommendations you've received:
- It's not about price... it's about service
- Find a niche for your brand of hosting

My experience as Managing Director for three different hosting companies -- all through different parent companies for the rack hardware -- is:

a) Most potential clients in small business don't even know what "hosting" is, and they don't care. They just want a website.

b) Since hosting fees have come way down, and most competitors do not charge set-up fees, it's tough to get a good return on the cost of advertising and signing up new clients.

c) How will you be compensated for technical support "hand holding"? You know... when the client doesn't want to read all the support documents, but wants you to walk them through their hosting controls? Get a strategy for this where you either get paid, or get a reseller plan where support is provided.

Best of success -
Scott

MarkTDedi
02-05-2006, 02:36 PM
Yes httpme has got a very good reputation around these forums.

They have an extensive amount of good reviews and have proven to be a good host.

ACACIA
02-06-2006, 04:57 PM
0-25mb - 26%
25-50mb - 38%
50-100mb - 22%
100-250mb - 9%
250-500mb - 5%


Very nice info :)

Thank you so much

ldcdc
02-07-2006, 10:19 PM
But Im a bit concerned about costs, to me it seems hard to become profitable.Could be that you're necessarily part of their intended target market. AussieBob who founded Httpme saw a need for multiple domain hosting bck when he designed the brand, and I believe he even said once that many of Httpme's customers are in fact web developers and websites owners, not resellers per se.

For example the Plan 1 is $35 for 2gb storage and 20gb bandwidth and you can host 50 domains. Lets say I do host 50 domains so that equates to 40mb storage and 400mb bandwidth for each of my customers.Be smarter that the many others and find a way to make the customer see value in the service itself. If the numbers are not your offer's strong point, don't present them as such, don't make them the focus of your marketing effort. Your so called Unique Selling Proposition must be something else.

AnmolTech
02-08-2006, 08:42 AM
Yes httpme has got a very good reputation around these forums.

They have an extensive amount of good reviews and have proven to be a good host.


Their prices are not cheap though --- yet they remain profitable.

Any thoughts on this anyone?!!

layer0
02-08-2006, 08:52 AM
Their prices are not cheap though --- yet they remain profitable.

Umm...yeah...isn't that normal? Of course they will make profit with their higher prices - what's odd about that?