Page 1 of 2 12 LastLast
Results 1 to 40 of 45
  1. #1
    Join Date
    Oct 2007
    United States

    Are you Making Money, or, Building a Business?

    I created a similar post several years ago on a different forum, and have recently rehashed it and posted it onto our company blog. If you're thinking about starting a hosting business or have been in the business for less than 2 years, this article contains some great information for you.

    One very important thing you need to ask yourself: Are you in this to make some quick cash, or are you doing this to build a long-term successful company? If you are not in it to do the latter, then you will greatly suffer and lose out on long term rewards.

    Suppose you would like to start up a web hosting company using a reseller hosting account or dedicated server. You would have to do sufficient research, and purchase all the necessary utilities: a reseller plan or server with enough resources, web design, billing system, customer support, etc. Completing these first steps gives you a great feeling of accomplishment, since you’re now ready to take the several months of planning and turn your dream into a reality.

    The Beginning Stages

    This is the part where most hosting companies will fail. After several months, you become so totally absorbed into your new business that you start forgetting about your normal, daily life. When you speak with friends or family, eventually the topic of your business will come up. The first question from them will always be “How’s your business doing?”, and then occasionally “How much money are you making?”

    In the early stages, that question will absolutely CRUSH any persons entrepreneurial excitement. This is normal. You’ll need to swallow your pride when you realize that the answer to that question isn’t yet what you would like it to be.

    Whether you realize it or not, you’ve now set an invisible goal for yourself. You now believe that in-order to prove to the world that your hosting business is not a failure, you have to show that you have a large profit margin.

    You shouldn’t get discouraged if your business isn’t an instant success. Infact, most businesses in general do not usually turn a profit for the first 12-24 months. If you’re counting on being the exception instead of the rule, then you’re setting yourself up for disappointment.

    Making Money and Building a Business are Two Different Things

    This is especially true for startups. The majority of new web hosts invest copious amounts of time into the startup of the business, and then if they don’t see immediate results, they abandon their business with nothing to show except debt and lost time.

    Not seeing the profit and cash flow after the first 6-18 months can be a very scary feeling. That feeling is what will drive many startups to give up or sell their business. This is a huge mistake.

    Perhaps an analogy will help; My wife recently has been cooking some amazing food with home grown vegetables. Think of the time and effort put into a reseller web hosting company, as the time and effort put into a garden. If you were to plant a seed and water it, fertilize it, and after a few days or weeks you don’t see any vegetables. Would you give up on it so soon? Probably not, because you can see the physical growth and see your plants slowly developing. With a business, it’s the same idea, except not as easy to see, and is on a much grander scale.

    My advice to you: Don't worry about making money in the beginning.

    Planning ahead is imperative. It would not be wise for you to quit your day job immediately. Make sure that you have a strong business plan, and are financially secured for 6 months at the very least prior to starting out. Work on the business in your off time, and the business will succeed if the right amount of time, planning, and effort is put into it.

    Don’t give up and the next time someone asks that dreaded question, your answer will feel much more admirable. Good luck!

    eLief - Where your business matters.
    cPanel Hosting - Reseller Hosting - VPS - Dedicated Servers - Magento Specialists
    Celebrating over 4 years of providing quality hosting.
    cPanel/WHM - LiteSpeed - CloudFlare - R1Soft Backups - 15k Cheetah's - 24x7 Support

  2. #2
    Join Date
    Apr 2011
    Thank you =), hopefully this guide will help out any new start ups, either now or in the future...

    ( this should be a sticky )

  3. #3
    Join Date
    Jan 2011

    Are you Making Money or Building a Business

    What is the best online small business website building software?

  4. #4
    My businesses do not really generate a profit until 3-4 years down the road. Ive noticed that the longer I can put off making money personally the faster I can grow the business.

  5. #5
    Join Date
    Sep 2007
    This was quite useful I'm hoping to start up a host and my goal for the first year is to be able to pay next years server bill.

  6. #6
    Nice post
    It could be useful.

  7. #7
    Join Date
    Mar 2009
    Here Today - Gone to Maui
    I'd take that one step further and recommend that you're able to absorb at least one year's operating expenses upfront.

    Nice article .. thanks eLief
    ProlimeHost - Dedicated Server Hosting, Hundreds of Servers & Clients Worldwide
    Three Datacenter Locations: Los Angeles, Denver & Singapore
    SuperMicro Hardware | Multiple Bandwidth Providers | 24/7 On Site Engineers | Blog

  8. #8
    nice, cheers!

  9. #9
    Quite informative and up-lifting, thanks!

  10. #10
    great article. thanks for sharing!

  11. #11
    Wow this is great! Thanks for sharing with us!

  12. #12
    Great article, actually i have already create a start up web hosting commpany a long 2 years ago, and now (middle of 2011) income come.

  13. #13
    this thread just give me a hope....

    and great thanks for giving me that...

  14. #14
    I enjoy reading your article as if it generated what I'm a situation in right now. Thank you for your motivation. - Affordable Premium Hosting Solutions.
    Provides Hosting since 2010
    cPanel, R1Soft, Easy Website On-the-GO
    Registered company.Vintayge - An Internet Brand.

  15. #15
    I love it! This opened my eyes a little more.

  16. #16
    Thanks for this very informational and motivational article I took a lot a way from it.

  17. #17
    Join Date
    Mar 2011
    Provides a different look at your business, thank you this was a great help,


  18. #18
    Join Date
    Oct 2010
    Guide is very wise. Begins are always hard. When I started I didn't have a lot of earnings for the first year, I decided to grow company instead of earning quick unstable money. And trust me it paid off.
    ModulesGarden - Official WHMCS Partner
    High-End Modules For The Most Known Web Applications Like WHMCS Or Magento
    Top Quality Custom Software Development Services For:
    Web Hosting Systems | Control Panels | Servers & Cloud Management | CMS | eCommerce

  19. #19
    I actually read this before I signed up here, and I can actually quite proudly say, I'm building a business. Currently, We're about $2k a year AWAY from even breaking even.

    But I'm not sweating it, I keep providing great service for the clients, It'll be worth it in the end, what's that saying...? You can't see the rainbow without feeling the rain? or something like that.

  20. #20
    Join Date
    Mar 2010
    Now, I've read this post a number of times. Great motivating factor.

    Even though I'm not running start-up, this post encourages me.

    Thanks for that.
    "You got a dream... You gotta protect it. People can't do somethin' themselves, they wanna tell you you can't do it. If you want somethin', go get it. Period." - Pursuit of Happyness

  21. #21
    so true. i have started web2web going close to 4years and at least up to 2 and even more do you not pull income out.. well if you want a success business..

  22. #22
    Join Date
    Sep 2011
    Cairo, Egypt
    Thanks for share

  23. #23
    Join Date
    Aug 2011
    Covina, CA
    Very helpful article as it gives a realistic view of start up expectations.

  24. #24
    great article, This opened my eyes a little more.. thanks for sharing!

  25. #25
    Thank you very much for this.

  26. #26
    Join Date
    Jul 2003
    Pennsylvania, USA

  27. #27
    Thanks! I like this tutorial and i agree with the dont worry if you dont see cash flow right away. You will see it in the long run. I have had my hosting company for 2 months now and im just about to breaking even with the debts to create the site and everything. But with my customer base growing and keeping my customers happy within the next month i hope to get just a few more customers to be able to break over the breaking even points.

  28. #28
    Thanks Alot for this one,
    I almost enjoyed to the max reading your advices and experiences.

  29. #29
    Join Date
    Dec 2009
    Abbotsford, B.C., Canada
    I've been running a very small private webhosting company since 2007, I can tell you this, the money comes if you are persistent, and you focus on helping those needing your service. I have found that people love to be looked after, do that well, the word gets around pretty quick.

    It's never about you, it's always about those who need your service, make it as easy as possible for them, and you will be in a good place eventually.

    Each persons motivation is different, I believe the number one gift you need to have is...the gift of helping people. That gift alone will make your business tick.

    Happy Hosting!

  30. #30
    Very nice post and comments. I think this inspiration quote by a former president coincides well with what's been said here.

    “If you live long enough, you'll make mistakes. But if you learn from them, you'll be a better person. It's how you handle adversity, not how it affects you. The main thing is never quit, never quit, never quit.”

    -- Bill Clinton
    An ITX Design Hosting Company
    FFmpeg Hosting
    tel. (866)-577-1442

  31. #31
    thanks for this post. i think im heading on the right way.

  32. #32
    Join Date
    Sep 2008
    This is really a very good and to the point article!

  33. #33
    Join Date
    Jun 2003
    London, UK
    I don't think there needs to be a binary choice between "building a business" or "making money". A business exists, ultimately, to make money for the shareholders. Thus, you need to have a well thought out plan as to how you will eventually make money.

    "Building a business" and *not* making money is how the .com bubble crashed in the early 2000s - they tried to run before they could walk, and making money (and profit) for a lot of those businesses was an afterthought.

    Don't fall in to the same trap.
    Darren Lingham - UK Webhosting Ltd. - (0800) 024 2931 - Quality UK Windows and Linux hosting since 2003
    UK WordPress Hosting - Fast, easy, cloud based WordPress Hosting

  34. #34
    Join Date
    Nov 2009
    Quote Originally Posted by dazmanultra View Post
    I don't think there needs to be a binary choice between "building a business" or "making money". A business exists, ultimately, to make money for the shareholders. Thus, you need to have a well thought out plan as to how you will eventually make money.

    "Building a business" and *not* making money is how the .com bubble crashed in the early 2000s - they tried to run before they could walk, and making money (and profit) for a lot of those businesses was an afterthought.

    Don't fall in to the same trap.

    Simple fact is every business needs to make a "profit"

  35. #35
    Wa have been making money since 2002.

  36. #36
    This is a great post.
    I have been in hosting business since September 2011, till now there is not even a single month I have earned any profit. The designing and developing side of my business is basically holding up the server costs!

    I hope things will change soon

  37. #37
    I agree, the key is to stay determined no matter what turnover you are making. As long as you have the time, knowledge and power to expand, even gradually then you shouldn't give up on yourself.

  38. #38
    Join Date
    Dec 2012
    Surabaya, Indonesia
    Nice post. Thanks

  39. #39
    Great Post! Thank's a lot

  40. #40
    It all depends on how you calculate your budget. In the very beginning, you will loose a bit of money, but on a longer period, you will be in profit for sure, just make sure you have a requiring budget to start with. Staff. Shared Web Hosting | Reseller Web Hosting | IRCD Hosting | psyBNC/sBNC/eggdrop/znc Hosting
    xShellz Linux Shell & IRCD Hosting.
    24/7 Live & Ticket Support

Page 1 of 2 12 LastLast

Similar Threads

  1. Building business in Florida
    By Edner in forum Colocation and Data Centers
    Replies: 16
    Last Post: 12-30-2010, 10:58 AM
  2. Can link building help my business
    By pctank in forum SEO / SEM Discussions
    Replies: 26
    Last Post: 09-02-2008, 03:38 AM
  3. Money to be made in Building comps?
    By Neil V in forum Web Hosting Lounge
    Replies: 29
    Last Post: 09-11-2005, 01:11 AM
  4. Webmaster Tools - Online Business Money Making Website
    By EGS in forum Other Offers & Requests
    Replies: 2
    Last Post: 07-03-2005, 07:35 PM
  5. Replies: 2
    Last Post: 12-23-2003, 03:16 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts