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  1. #1
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    Arrow DO you profit from webhosting business?

    Hi All,

    I was thinking of earning a side income. So I think of start a webhosting business.

    I wanted to know abt DO you profit from webhosting business?

    Also which hosting has more profit, Is it selling vps or selling hosting, fixed space hosting, or gameservers?

    Is the profit margin slim for starters?
    Last edited by WEBCRAFT-TUCKY; 05-11-2011 at 08:43 PM.

  2. #2
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    It really depends on which market segment you're targeting to, and how hard you work and use your time to run this web hosting business.
    I've been running a web hosting service - as a reseller (as well as provide web design service) for about a year now. The most profit mainly came from the web design service.
    I think and believe that this 2nd year, I'll start getting profit from my shared hosting clients renewal (not too much, but at least it will generate some side income).
    Well, as a starter, don't expect too much of getting large profit from web hosting service on your first year.
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  3. #3
    Honestly you have to pick who you do business with wisely. Most of the time downtime was an issue for us at the beginning. We have gotten through that issue. Once you pick a good web hosting provider or dedicated server provider to deal with you shouldn't have any issues. You have to spend money to make money. Don't go for cheap hosts if you can help it. If you pick a bad hosting provider, it will kill your business. Look for reviews. Research and even try the host before you make your business live. We make money solely on hosting only and we do make money. Nothing else profits us.

  4. #4
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    I'm only getting into webhosting, going to start colocating 1 server every 2 months or less for next 1.5 years. By that time I recon I'll start breaking even.

  5. #5
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    That's a good tips from M. Bacon
    good and reliable host provider is you main 'backbone' to run and sustain this web hosting business.

    @vertek: all the best for your webhosting business and hope you'll break even by that time
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  6. #6
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    Quote Originally Posted by agustan View Post
    That's a good tips from M. Bacon
    good and reliable host provider is you main 'backbone' to run and sustain this web hosting business.

    @vertek: all the best for your webhosting business and hope you'll break even by that time
    I had a big thing wrote up as an edit but 15 minutes where up
    ill try again

    and thank you

    what didnt get posted cos of 15 minutes max >> This may only apply to Ireland, I will be colocating in the most expensive dc I know of in Ireland but I have had a chat with them and they are small enough to be very help full and I'm dealing with a manager techy not a sales rep.

    I will be a bit more expensive than other local hosts but the locals are getting fed up because of reliablity issues.
    this is still a near cost price sale. Once I can get 10u saturated(not over selling too much nice ratio of low-high usage clients. I will be making a healthy profit. My dc has dual power, dual ups and diesel backup. 7 carriers for redundancy and an amazing tech support. All my main servers will be in this dc but I will have failsafes implemented either abroad or in a different county. All of my servers will be redundant psu, raid 1 to start with and have regular offsite backups included so this should minimise downtime which is a huge problem.

    So once I dont mess up the server settings, dont get ddos'd too much or similar I should be fine and get clients ofcourse.

    Do something that everyone isnt doing. Basic cheap, unlimited hosting, as far as I can tell only the really big companys make profit out of it because they get bandwidth in so cheap in comparison. Make sure you start off with the best servic you can supply in time people will look for you because of that and spending money on security 24/7 monitoring is a must also. 15 minutes nearly up so thats it for now
    Last edited by vertek; 05-12-2011 at 12:24 AM. Reason: added what didnt get posted

  7. #7
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    Quote Originally Posted by WEBCRAFT-TUCKY View Post
    . . . DO you profit from webhosting business?
    As much as I can, yes.
    Also which hosting has more profit, Is it selling vps or selling hosting, fixed space hosting, or gameservers?
    Probably start off with shared hosting.
    Is the profit margin slim for starters?
    Very slim, but like anything, you can grow it.

    Hosting is a tough business these days, with so much competition. I'm glad I got in back 10 years back.
    WLVPN.com NetProtect owned White Label VPN provider
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  8. #8
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    Everyone tries to compete on price now a days instead of value and quality.
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  9. #9
    The provider your using along with many other factors will determine how successful you can become.

  10. #10
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    Web hosting business is very demanding. I don't know if you can start it as a 'side income'. You need to maintain your server, give supports to your clients, etc. It might need more time and effort than you'd think.

    You might want to start small and start from there...

  11. #11
    Quote Originally Posted by WEBCRAFT-TUCKY View Post
    Hi All,

    I was thinking of earning a side income.
    You can't get success in webhosting business if you're running a hosting business as a side business
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  12. #12
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    Quote Originally Posted by CGotzmann View Post
    Everyone tries to compete on price now a days instead of value and quality.
    I couldnt argee more, Price this Price that, The offers section is just a war on whos prepaired to cut their throat in order to gain business, I find this pretty sad.

    Its abit like the shaving companys "Closer" "Even Closer" "The closest shave ever" they wont be happy untill your left with a skull on your shoulders



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  13. #13
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    Quote Originally Posted by DewlanceHosting View Post
    You can't get success in webhosting business if you're running a hosting business as a side business
    I agree 100%!
    Looking for an awesome VPS Offer? CLICK HERE

    "Knowing is not enough, we must apply. Willing is not enough, we must do." – Bruce Lee

  14. #14
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    Quote Originally Posted by CGotzmann View Post
    Everyone tries to compete on price now a days instead of value and quality.
    I'm going to have to disagree with you on that. I think the majority of new web hosts (inexperienced or careless web hosts) use price points as their main focal point for attracting new business. While the more experienced web hosts focus on value and quality.

    A more correct statement would have been "a majority of webhosts try to compete on price now a days instead of value and quality."
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  15. #15
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    Quote Originally Posted by DewlanceHosting View Post
    You can't get success in webhosting business if you're running a hosting business as a side business
    Quote Originally Posted by FernGullyGraphics View Post
    I agree 100%!

    I have to say I don't agree with this at all!

    Personally I started in the hosting industry almost 10 years ago (not the company in my signature) on a $20 a month reseller. With the help of WHMCS auto setup and billing I quickly grew from a hobby to a full time job. While most my clients are local for shared hosting I got into the shoutcast niche of online audio streaming. It runs itself, I only get 3-4 support tickets all year when people forget their passwords! It pays all the house bills but I do chose to work another job to help pay off student loans, retire earlier, and for my sons medical bills.

    I got into hosting because I loved working on sites and talking to people online. I personally never thought 10 years later it would be a career and paying all my bills. It is just important to remember that if your going to only do it on the side that you can still help any client who needs it. Make sure any support emails go to your phone and you can reply right away. You don't want clients waiting because then they will just find another host. There is a whole lot of competition in the hosting market so customer service is very important.
    Currently hosting with Big Brain Global Networks

  16. #16
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    Quote Originally Posted by MichelleH View Post
    I have to say I don't agree with this at all!

    Personally I started in the hosting industry almost 10 years ago (not the company in my signature) on a $20 a month reseller. With the help of WHMCS auto setup and billing I quickly grew from a hobby to a full time job. While most my clients are local for shared hosting I got into the shoutcast niche of online audio streaming. It runs itself, I only get 3-4 support tickets all year when people forget their passwords! It pays all the house bills but I do chose to work another job to help pay off student loans, retire earlier, and for my sons medical bills.

    I got into hosting because I loved working on sites and talking to people online. I personally never thought 10 years later it would be a career and paying all my bills. It is just important to remember that if your going to only do it on the side that you can still help any client who needs it. Make sure any support emails go to your phone and you can reply right away. You don't want clients waiting because then they will just find another host. There is a whole lot of competition in the hosting market so customer service is very important.
    WHMCS was started in 2005, so im not sure how that helped you in 2001? Furthermore, what happened to the web hosting company you started in 2001? Not necessarily doubting your story, but I've been around long enough to know that in order to build a successful business, it requires your FULL time, not part-time.

    I seriously doubt there are many people who have built a 6 figure a year income with their web hosting business by simply running it part-time and if they did, its definitely not the norm.
    Last edited by Forward Web; 05-14-2011 at 10:50 AM.
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  17. #17
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    Quote Originally Posted by FernGullyGraphics View Post
    WHMCS was started in 2005, so im not sure how that helped you in 2001? Furthermore, what happened to the web hosting company you started in 2001? Not necessarily doubting your story, but I've been around long enough to know that in order to build a successful business, it requires your FULL time, not part-time.

    I seriously doubt there are many people who have built a 6 figure a year income with their web hosting business by simply running it part-time and if they did, its definitely not the norm.
    I didn't use WHMCS until business got bigger, but it has helped over the years. I do still have my company I simply do not advertise here on WHT anymore, I have in the past. As I stated above it is more Shoutcast than anything else. I have mostly local companies for shared hosting. It is about finding your niche and where to advertise it, I simply don't advertise on WHT.

    I never said it makes me 6 figures a year, but it pays all the bills and we live very comfortably.
    Currently hosting with Big Brain Global Networks

  18. #18

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    Quote Originally Posted by MichelleH View Post
    I didn't use WHMCS until business got bigger, but it has helped over the years. I do still have my company I simply do not advertise here on WHT anymore, I have in the past. As I stated above it is more Shoutcast than anything else. I have mostly local companies for shared hosting. It is about finding your niche and where to advertise it, I simply don't advertise on WHT.

    I never said it makes me 6 figures a year, but it pays all the bills and we live very comfortably.
    Buy you get success in very long time(10 years) so no any difference in part time or full time.
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  19. #19
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    Quote Originally Posted by DewlanceHosting View Post
    Buy you get success in very long time(10 years) so no any difference in part time or full time.
    it took 4-5 years to be making enough to pay all the bills... I didn't think it was too bad of a time frame
    Currently hosting with Big Brain Global Networks

  20. #20
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    4-5 years isn't all that bad in all actuality.

    I mean, we can go back to the old saying "If you do what you love, it isn't a job at all". This is totally true, I love hosting; I love everything about it from the hardware to support. It's demanding, you've got to find your niche to give you that small edge over your competitor.

  21. #21
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    For starters it is very difficult to make much money running it as a "side business". Web hosting is quite a competitive industry where if you doze off even a little bit, you'll be sidelined as a "fly-by-night" provider.

    Also, the real money comes only after you've built yourself a reputation and serve better. This happens mostly after one year of continuous, dedicated and hard work.

    But you can begin a business now and then plan to jump into it full time later at some point in your life time.

  22. #22
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    I,d just like to add that I have a part time business in the leisure industry and yes it makes money but it doesnt require my full time attention because I only take on "big jobs" and upper market clients...

    So yes you can make a business work on a part time basis if you know what your doing.
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  23. #23
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    Expenses tend to grow with revenue. Profit? Yes. Barely, but that's intentional to reduce taxes

  24. #24
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    Quote Originally Posted by David View Post
    Expenses tend to grow with revenue. Profit? Yes. Barely, but that's intentional to reduce taxes
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  25. #25
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    Quote Originally Posted by SLDHosting View Post
    Naughty Naughty
    How's it naughty? Last month of the tax year we always donate an epic amount to a random charity to prevent some ******* building bridges to nowhere from getting it. The government already collects an obscene amount in the form of gax tax, property tax, sales tax and several others that we pay on a daily basis: income tax is one of the few you have the ability to at least mitigate with expenses & write-offs.

    Better yet, as a corporation you technically have a duty to your shareholders to mitigate said taxes. With me being the only shareholder I'm a big fan of that too

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