A general question to everyone here.

With so many hosts to choose from and new hosts being born on daily basis, isn't this market getting saturated or is already?

In this fierce competition, the overall profits are decreasing day by day...so what would be the market condition after 2 to 3 years? Would hosting business be still attractive for a new Entrepreneur?

Yes, the market is "over-saturated" with hosts.

My guess is that 90% of the new hosts will be out of business within 6 months, either bought out by a larger host, or trashed becuase they realized that they can't give everything away for a nickel.

As far as profits go, I have only seen an increase for me. Building a strong client base takes a lot of time and many hosts don't realize that until its too late - that's where they drop off the face of the earth.

In 2 or 3 years, I don't see any difference, except maybe not as many new hosts starting up each week. Right now, I'd suggest only moving into the hosting business if you are ready for it - that means financially too. It will probably take a couple of months for a new host to even "plant the seed for a client tree". You'll (and I say this generally) need to be prepared to answer all sorts of questions as more and more "newbie webmasters" are getting into the scene. Also, be prepared for a burnout or two, find a partner to make it easier for you....

Originally posted by ForumsAddict
A general question to everyone here.

With so many hosts to choose from and new hosts being born on daily basis, isn't this market getting saturated or is already?

In this fierce competition, the overall profits are decreasing day by day...so what would be the market condition after 2 to 3 years? Would hosting business be still attractive for a new Entrepreneur?

Dear Friend,

I think there are too may people around who are thinking exactly the way you do.

But you did not mention how may hosts are getting their doors closed every day! You are right... Too much competition, But I believe those hosts would last for long time, which has got a good customer/technical support and are reliable in services. Not all of the hosts has got this two advantages, so most probably they will be out of the game soon or later.

People are now choosing their hosting providers very carefully, since they had had bad experiences with their previous hosts.

Now people prefer to pay more, to the host which deserves. I noticed that lots of hosting providers who are posting here in WHT are offering big amount of disk space and monthly traffic allowance for very very low prices. Do you think they are reliable ? Or do you think they last for long time ?

i have to agree with robert (good name by the way ;-)), although im a programmer not a "web host". I do think that the market is over saturated. if you're ready for a long haul tons of work, and little start off pay stick with web hosting. its all about pleasing the customer. responsive service is always the best. just my 2 cents though....

Originally posted by HeadMaster

I noticed that lots of hosting providers who are posting here in WHT are offering big amount of disk space and monthly traffic allowance for very very low prices. Do you think they are reliable ? Or do you think they last for long time ?

Are you talking about yourself?

4 GB Storage space
100 GB Monthly Traffic
$45 per month

there are more and more resellers chasing for the same customers, I think its getting quite saturated.

Originally posted by akashd
You'll (and I say this generally) need to be prepared to answer all sorts of questions as more and more "newbie webmasters" are getting into the scene.

We were discussing that recently here. The newcomers and the seasoned siteowner alike, are now starting to pile on the questions that we used to enjoy receiving and answering 12 to 18 months ago. A lot of the focus of pre-sales enquiries had been strictly about cost. Now, in say the last 2 months, we're seeing pages of questions about features and support again...as folks are discovering where the downfalls are happening.

I really don't think it matters greatly what we charge anymore. And a 100% "uptime" guarantee simply doesn't rate against a 100% commitment to providing a reliable service.

Cheers

Gary

Amen, Gary.

And a 100% "uptime" guarantee simply doesn't rate against a 100% commitment to providing a reliable service.

With so many comprehensive replies, i can only come up with a major fact that in the future hosts that have good customer base, strong client support system can survive.

As far as the clients are concerned there are still 6 billion ppl living on this planet and not every one has his/her own website...:)

It's been oversaturated for a long time, so recent events haven't changed much beside pricing. There's still plenty of growth available at all ends of the market though so I wouldn't be too concerned. Big growth is more a fluke than the norm of course.

This industry has always been about service though. I find it odd it seems to be a recent 'idea' for hosts - from small timers to the big multinationals. :) Keeping a customer is worth 10 times as much as getting one.

This time of year is always a little slow (though it's picking up again for the lead-in to the Xmas period), as is January. Early in the new year has always been a bit of a goldmine, for us at least, so you weather the slow times, and make sure you make the most of the good times.

Having said that, yes, enquiries do tend to have a lot more questions than they used to. I'm sure it's a combination of nervous customers, as well as more web savvy ones. As long as all your ducks are in a row and you know your hardware/software it shouldn't present too much of an issue.

Greg Moore

hmmmm, saturated ? I highly disagree :stickout

If your targeting WHT yeah it's saturated , if your only looking on WHT for customers you have a poor and unstable bussiness plan in the first place :rolleyes:

WHT is such a small , small percentage of folks who are looking and need webhosting. I would rather have the people that are willing to pay reasonable prices , not I want everything for 3.95-6.95 a mth.

If your targeting WHT yeah it's saturated , if your only looking on WHT for customers you have a poor and unstable bussiness plan in the first place

I think we all know that but i would like to know your idea of a perfect marketing plan for a begginer hosting company?

We have been Very Succesful with Local Client Hosting , personal , bussiness etc. Over 95 % of our clients are Local customers which net 2-4 times more per plan versus doing combat here on WHT.

We have been Very Succesful with Local Client Hosting , personal , bussiness etc. Over 95 % of our clients are Local customers which net 2-4 times more per plan versus doing combat here on WHT.

Actually i will have to agree on this..one of the best ways is to target the local market so that one can get a good customer base.:)

Exactly , Trust me it's not any easier to do it locally but I think you build a good bond with your customers on a more personal level.

I did alot of research before I got into the webhosting side of things , and set out what I believe is a solid bussiness plan.

I started with 1 years budget in reserve cash myself and not a shoestring budget like I see so many start up host do. People like to think hosting is a get rich quick and that customers will flood your servers , it ain't so I hate to say. It takes time and alot of hard work and effort and long , long hrs everyday.

The past 3 months have been real hard for me and trust me there were times I said is this really worth the hassle ? sometimes I walk in the door and just want to die after a 16-20 hr day , but now I am starting to reap the rewards of hard work and dedication I have put myself through the past several months.

We all talk about a lot of hard work. How do we attract webhosting customers? New hosts here need to know the mediums and budgets required to create a successful brand name...

Originally posted by ForumsAddict
We all talk about a lot of hard work. How do we attract webhosting customers? New hosts here need to know the mediums and budgets required to create a successful brand name...

Easiest way to attract new customers is to treat your current customers like gold. Word of mouth is the most effective form of advertising in any industry (though many others will disagree).

IMO, it doesn't matter if you spend $100 or $10,000 on advertising each month - if you have a bad reputation, you won't get any new customers.

Again, generally speaking, 9 out of 10 new hosts come into the "game" thinking its an easy task - well (now speaking to all the new hosts), guess what? It's not.

It takes time to create a successful brand name and a good reputation, doesn't happen overnight. Spend money wisely in the first few months - don't spend $1K on advertising if you know you won't get a good ROI, or won't be able to handle the consequences (ie, a sudden surge of customers and inquiries). Advertising EVERYWHERE is a no no too. There's nothing worse than having a customer think, "These guys have ads everywhere, they must really need customers and money."

Stick with effective planning and budgeting (IOW, have a solid business plan), treat customers like gold and you'll be "known" within a few months.

thank you for that insight but i really curious to know about the meaning of "Akashik".. :D