I someone were considering starting a dedicated and virtual hosting company, what would be the best suggestion for billing software and client control based software. I know there is a software called plesk, anymore suggestions?

Is there really profit to be made in virtual hosting, I mean accounts ranging from $4..95 to $9.95 can't do very much.

I would consider using CPanel over plesk, its a little more expensive but most users prefer it. www.cpanel.net.

No-one's saying that you have to charge $4 a month -- you'll find most hosts that do charge this amount won't be around too long. The important thing is to provide EXCELLENT customer support; people will pay extra if they know that you're going to be able to help them, and help them fast.

Make sure you prepare a GOOD business plan. 98% of hosts won't do this - the 2% that do will be the ones who succeed in the long run.

Finally, be prepared for long hours and hard work. Its a tiring business and shouldn't be entered into if you're not 100% serious about it.

Having said that, it is also extremely rewarding both personally, professionally and monetarily. Good luck with it, if you plan well and are serious, its very easy to do well.

Jo

What is the hardest part and takes the longest when it comes to providing web hosting?

cpanel charges a monthly fee, why? Isn't it just software? If so, why spend an extra $1200.00 a year?

What about security, how do you ensure that your virtual hosting clients don't get access to the rest of the server, like when they log into ftp, how do you ensure they don't go into other directories? Does cpanel take care of this?

Originally posted by inbuco
cpanel charges a monthly fee, why? Isn't it just software? If so, why spend an extra $1200.00 a year?

What about security, how do you ensure that your virtual hosting clients don't get access to the rest of the server, like when they log into ftp, how do you ensure they don't go into other directories? Does cpanel take care of this?

Based on your questions I think your best next step is to get a cheap PC, download and install FreeBSD or Linux, and see how far you get without that piece 'just software'.

In fact, if you are serious about this business, spend the time learning *nix without the control panels. Invest the time in yourself and when you have a good set of skills and knowledge, then get into the business.

Then you'll be in a position to know for yourself whether certain software has value or not.

Originally posted by jstonehouse
...its very easy to do well.

Depends on your definition of doing "well" ;)

I think a lot of people, esp. on this board get what I like to call 'hosting fever'. They think that they start up a company, customers will flock to them, and they will be rolling in piles of money. Heck, I used to think that.

What you need to realize is that there are hundreds and thousands of companies all trying to provide the same thing. You'll soon realize that it's very hard to compete with companies that offer the world at half of your prices. In order to succeed it's going to take a lot of hard-work and dedication. You can't be fickle - once you start, you have to stick with it.

Make sure this is what you really want to do. I'm a lazy person and realize that I want an easier job later in life. Webhosting isn't what I want to be doing the rest of my life. Course that's just me. I'm done now...sorry for sounding preachy.

so what about the billing part guys?

You can start with third party merchant provider, revecom.com (and others) then you may need to upgrade to your own merchant account to cut down the fees :) There are some billing software available on the market (heard that new perldesk will support billing info etc...) You may need to check out some older posts and you will find some very good info there ;)

In regards to control panels more and more are auctually prefering plesk over others. We were considering switching from Plesk but most of clients sent us e-mails requesting we stay on Plesk.

If you start out with a third party processor like 2checkout or revecom, keep in mind that switching to your own merchant account will be a major pain. With those processors, you don't have access to the cc numbers and will have to ask your customers to enter them again - depending on the relationship you have w/ them and the amount of customers involved, this may not be a major issue. If you are going to stick with it in the long run, get your own merchant account - it will make things a lot easier.

MadSkilage,


There is also the option of upgrading to a real merchant account, and only setting up the new clients with it, leaving the old clients on the original processor account.

When or if you upgrade, you can also send out an annoucement (if you TOS allow you to send out announcements) so that current customers can decide if they want to be upgraded.

Just my .10 cents

That is true, but when you are dealing with several hundred or even several thousand clients, it gets a little more tricky.

How do you get your own merchant account?

I thought that if i went to a place liek 2checkout.com that was my own merchant acccount..?

So if i sign up with 2checkout.com -- when i bill my customers, does that mean they are getting billed by 2checkout.com on their cc. or will it say my name (as in my company) ...or?

Merchant accounts cost more... they have a larger setup fee, and they have monthly fees on top of the per transaction fee.

but you have your clients billed in your name instead of a 3d party name.

Bank merchant accounts will usually also charge a huge charge back deposit.

so if i sign up with 2checkout, that means that on the user's cc statement it will be billed by 2checkout, instead of my company name....y es? no?

I believe so...

I use Revecom and the statements read Paysystems.com

If you signup with 2checkout, customer statements will say 2checkout.com because they are actually billing the customers for you. Although getting a merchant account requires more startup capital, it is much more flexible than third-party processors and allows you to bill what you want when you want.

For example, say a customer wants to purchase extra bandwidth. You have to cancel their recurring bill, then create a new recurring product, and get them to sign again. It can be really annoying for both you and the customer.

are there any requirements besides the capital ? to have ur own merchant acct

SSN or EIN and a business bank account. Some providers are very lenient while others may do a full credit check.