Hi, I have a hosting company for many years where we offer quality services.
Now I'm thinking of creating a new brand to offer cheap hosting and domains. The problem I see is that any customer can see that both companies are the same and this would adversely affect my main company.
Just target a different market with your second brand - there are lots of companies that do this
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This is actually a common business tactic for web hosting companies. A great example would be BlueHost and HostMonster. They are the same company. BlueHost specializes in business class web hosting and it is a little more expensive. HostMonster specializes in personal web hosting and is cheaper.
If you hide it well, you should have no problem running 2 brands under one company.
The thing to be careful with is ensuring that you don't just produce two similar brands. You want to have clear differences between your brands so that they ideally target separate market demographics.