Results 1 to 31 of 31
  1. #1
    Join Date
    Feb 2010
    Posts
    1,030

    Why do you do web hosting business?

    Competition, expensive server, earn less, security risk, network outage, client complain....


    Is a hosting business good to run?

  2. #2
    Join Date
    May 2008
    Location
    Missouri
    Posts
    1,332
    The reason why you see many new hosts start up is because it doesn't cost much to start a web hosting business. You just need:

    A reseller program: starting $25/mo
    whmcs: $15/mo
    domain: $10/yr
    vps: $30/mo
    website: $500 one time

    that's less than a thousand bucks to start a COMPANY...but a few companies actually have a decent sized capital investment and actually put time and effort to write out a business plan. Those companies tend to do better than the new startups who struggle to get 1 customer in the first month of opening.

    current large web hosting companies started a long time ago when there was barely any competition, so it was a lot easier for them than it would be to open one now.

    But there's always that one out of every few companies who the owner decided to open up a business because he actually has a passion for the web hosting industry and likes taking care of customers.

    thats just my 2 cents
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  3. #3
    Join Date
    May 2008
    Location
    Missouri
    Posts
    1,332
    Oh, and if it helps any, here is my reason:

    I used to play video games all the time and I was always a nerd and would check out gaming and hosting forums. After I grew up a bit, I took over ownership when my parents retired for a local restaurant while studying my undergrad for business. I got very into business since literally my whole family, mom and dad's side, are all business owners. Right now I own a computer sales company in Thailand, local restaurant and I work at an exotic car dealership as a sales associate. The reason I got into web hosting is because I've always lurked around the internet and view the forums on WHT. I was very interested about web hosting and since I was already going to school for business, own my own business and have lots of experience with other businesses I thought to myself "what do i have to lose?" and so I took XX,XXX out for investment to a web hosting business and wrote out a business plan, and hopefully my new company to be launching will get me somewhere. If not, i'm sure it'll at least be a great experience

    I'm well aware of the competition, and in my eyes it's one of the hardest markets to get into, but at the same time it's one of the easiest if you play your cards right. So I'm just praying that I'll be playing my cards right!

    and besides, the team I've hired to work with me in this adventure are GREAT to work with and I feel like I added myself a second family to my life
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  4. #4
    Actually in hosting business, you can gain more money at once you get established with your name. The quality of service should also be good. This can surely help us in long run of a business.

  5. #5
    I like the market itself, the ability for scale. My goal is to become one of the largest business in Arizona which treats employees well in an open collaborative environment "like facebook". I believe this market is one of them which will allow for this over time. It is also a lot of fun as it is processes and similar to retail however it is a service. Software is also a lot of fun as it is very similar.

  6. #6
    Billions of websites already in existence = lots of demand!
    An ITX Design Hosting Company
    FFmpeg Hosting
    http://itxdesign.com
    tel. (866)-577-1442

  7. #7
    Join Date
    Mar 2010
    Location
    Chennai
    Posts
    623
    I love this industry. There is so much scope in it and its the most flexible business for owners to be honest.

    Even when they say that web hosting is a saturated industry, we are able to find lot of scope in it. And, as long as the human beings are dependent on internet for a myriad of things in everyday life, I don't think what is going to stop web hosts from earning more!!
    "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

  8. #8
    Join Date
    May 2004
    Location
    Corona, CA USA
    Posts
    384
    I'm in the web hosting business to promote my gluten-free, vegan, tofu munching, tree hugging, Prius driving, atheistic, homosexual agenda.

    It's a small audience, sort of a niche market.
    Skeptic Hosting
    Promoting a reality-based lifestyle choice
    Hosting by invitation only, nothing for sale

  9. #9
    Join Date
    Jun 2009
    Location
    Singapore
    Posts
    792
    yes it is. It can be low risk too. At the end of the day, its about managing the customers properly.
    Jweeb Solutions
    Singapore Web Consulting & Solutions
    Web Consulting - Web Hosting - Web Design & Development and more...
    http://www.jweeb.com.sg - Making the Web Simple!

  10. #10
    agreed that web hosting business very competitive, but when you are passionate with what you are doing, including hosting business, chances are there as market are global...

  11. #11
    Passion takes care of success. Keeping that success takes skills in hiring, operations, management, funding, marketing, pr, etc. Something im still learning, working on operations right now actually.

  12. #12
    Passion really gives a good karma.

  13. #13
    Join Date
    May 2003
    Location
    Scotland
    Posts
    3,728
    I have been in hosting for many years, I think the benefit for me is that I have never been reliant on it. I have traded domains and websites longer than I have been involved in hosting and it's paid the spells where that area has been quiet.

    That is not to say I lack passion for hosting but not having a reliance on it and targetting a completely local market that will pay more to receive a strong service form a local firm makes my hosting venture very sucessfull.

    What I always find is that people come into hosting thinking "Global Market", "Millions of customers" when in many cases the real business that will generate profit is on their doorstep.

  14. #14
    First is was a hobby... then a passion... and now a commitment to serve my fellow Filipinos with quality web hosting at an affordable price.

  15. #15
    Join Date
    Jun 2010
    Location
    Panama
    Posts
    265
    Lots of competition, but since I was a kid always liked to host stuff still remember my old dial-up BBS server with a Hayes 9600 baud modem.
    Offshore Hosting & High Privacy in Panama
    OnApp Cloud Servers & Shared Web Hosting | Daily Backups | 99.9% Uptime
    www.OffshoreRacks.com

  16. #16
    Join Date
    Mar 2010
    Location
    Germany
    Posts
    681
    Quote Originally Posted by OffshoreRacks View Post
    Lots of competition, but since I was a kid always liked to host stuff still remember my old dial-up BBS server with a Hayes 9600 baud modem.
    ... For the last two weeks they had been piling up stuff in a passageway at my customers site. Around a dozen old 21" DEC screens, DECNet Routers, Serial multiplexers ISDN modems, and a lot of stuff that was something where you think "ah interesting, old stuff I once knew about but would never even touch".
    Then one day I walk with the others to get a coffee and see a Zyxel modem on top of the pile. I thought "woah, i should rescue that. 10 minutes later we walked back and it was *gone* already.

    Talk about classy modems
    Check out my SSD guides for Samsung, HGST (Hitachi Global Storage) and Intel!

  17. #17
    I like the flexibility of hours and location independence factors.

    Plus it totally fascinates me as so MUCH has to go on totally behind the scenes for a business owned web site to run properly.

    And things change fast. And it lets me hang out at WHT
    CapeWP.com
    CapeWP.com - WordPress for all of us

  18. #18
    Join Date
    May 2011
    Posts
    584
    It's extremely cheap to start from scratch.

    A $25/month reseller from HostGator gives you WHMCS for free, as well as templates. All you really need is a domain. That's a $10 per year for the domain, and $25 per month.

    Then, you keep building your way up.

    There are a LOT of risks and a LOT of competition. Also, sometimes it seems impossible to profit without owning your own servers or using a reseller account.

  19. #19
    Join Date
    May 2011
    Location
    Dhaka, BD
    Posts
    28
    well... I only wanted to give Free web hosting service which is also the best one... but recently I ran into some stuff like the server cost and blah blah blah... so I also started to give Paid Hosting Service

  20. #20
    start hosting business by reselling hosting if your business goes well then you purchase your own servers

  21. #21
    Join Date
    May 2008
    Location
    Missouri
    Posts
    1,332
    Quote Originally Posted by v12Host View Post
    well... I only wanted to give Free web hosting service which is also the best one... but recently I ran into some stuff like the server cost and blah blah blah... so I also started to give Paid Hosting Service
    Pardon me for being everywhere you post, but from what I'm reading out of all of your posts, you don't have much of an organized business plan and it seems you're doing this for fun. You first state that other hosts are making you look bad so you're not getting good business, now you're blaming it on your server cost because you are offering free web hosting. I don't mean to start or give you any trouble, but it just seems very odd and since you're new here you might want to catch up on reading rules. I don't believe you've broken any yet, but it looks like you're on the trail to break a rule. Just giving you a fair warning...

    cheers - no hard feelings
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  22. #22
    Join Date
    May 2011
    Location
    Dhaka, BD
    Posts
    28
    hmm... I am now more dedicated to give paid services... is there any problem? Well.. yeah its been only 3-4 weeks since I've started paid hosting so that why dont got any "Premium" clients

    on the other post I meant is that how do we get the customers trust?

    and here I am not blaming my free hosting service, I just mentioned how I started my business... and I am still giving free service

    and nope... I am not doing this for fun... just wanna proof that we Bangladeshies and Indians are not something to mock about... and yeah, I know that my site is not "well organised" still working on it... anything else you wanna know?

  23. #23
    Join Date
    May 2008
    Location
    Missouri
    Posts
    1,332
    Quote Originally Posted by v12Host View Post
    hmm... I am now more dedicated to give paid services... is there any problem? Well.. yeah its been only 3-4 weeks since I've started paid hosting so that why dont got any "Premium" clients

    on the other post I meant is that how do we get the customers trust?

    and here I am not blaming my free hosting service, I just mentioned how I started my business... and I am still giving free service

    and nope... I am not doing this for fun... just wanna proof that we Bangladeshies and Indians are not something to mock about... and yeah, I know that my site is not "well organised" still working on it... anything else you wanna know?
    You should know how you will get your customers to trust you. That should be listed in your business plan. But I still think it was quite clear in your other post that you were trying to blame "companies like these (Preston Host)" are what make "us" look bad, in which is causing you to not be able to get your "premium" clients.
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  24. #24
    Join Date
    May 2008
    Location
    Missouri
    Posts
    1,332
    But speaking in general - people do business to make money. They choose the market that interests them, so it should be obvious that *most* people do web hosting business because they are interested in the market and want to make some money, so they choose it as their job. The kiddie hosts choose web hosting business because they can all make their own company with just $500, but normally it dies over night.
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  25. #25
    Join Date
    Apr 2011
    Location
    San Francisco, USA
    Posts
    195
    Quite intrigued too. Hosts should let us (everybody here) the story behind why they started doing web hosting business! (Just for fun)
    Rg Enzon, Founder & Designer @ Play Technica
    Building user interfaces for humans.

  26. #26
    Join Date
    Dec 2010
    Location
    127.0.0.1
    Posts
    5,387
    I have loads of Passion about the webhosting industry, and i love having happy customers, i have worked at companies and they were ran perfect, i then thought to my self i can do this myself, so i choose a name and went on from there. I have only opened the company in February and i seem to have my name out there, however there is loads of competition out there, therefore we have to make the best deals and provide the best support and services to lure the customers to us. It's all a challenge.
    Licensecart - We only sell High Quality licenses
    Visit us @ Licensecart.com ~ sales(➾)licensecart.com ~ webhostbundle.com
    WHT isn't what it used to be… power changes people :]

  27. #27
    Quote Originally Posted by OffshoreRacks View Post
    Lots of competition, but since I was a kid always liked to host stuff still remember my old dial-up BBS server with a Hayes 9600 baud modem.
    Haha i had a similar setup...Man just thinking back to those days dial-up was Slooooooow.

  28. #28
    Join Date
    Dec 2002
    Posts
    592
    Quote Originally Posted by chhit View Post
    Competition, expensive server, earn less, security risk, network outage, client complain....


    Is a hosting business good to run?
    Just take in consideration this logic.

    A) There is a demand for it?
    Yes
    B) Everyone has to deal with those complications?
    Yes

    As long as there is demand, there will be offer, with or without you.
    Stuff can get to a point where the toll to be profitable is to high or the areas to make a difference are very scarce, time to innovate, to search blue oceans, and such, EVEN in the same industry.

    =============================

    I went into Hosting because it was a logical oportunity...
    I was about to start the Web Design business(11 years ago) but when I looked to host my site, I saw there was Reseller hosting, so there.
    Now, Hosting is as important as webesign in my business..., BUT, we are in the path to innovate, to stand out, or even to create our own niche.

  29. #29
    i opened hosting companey because i love working in this filed
    i still working 12 hours on my computer daily
    i did not search for profit , but i search for to be good name only

  30. #30
    some starts web hosting business because they want to serve their local community e.g websites, internet radio stations , designs and etc.

    The Current hosting industry is at demand, the more the competition the more its demand are.

    It all depends on how you market your company. support your client is the most important part of the business. Clients needs customer service and support

  31. #31
    Join Date
    Dec 2002
    Posts
    592
    Just wanted to add a comment...

    Iīve seen how Quality Service and Support is been taken as, "the core", "the main thing", and even like "as long as you deliver top support and service youīll be fine.."..., etc.

    well, that idea, in my opinion, is for Momīs and Popīs businesses 50years ago.

    Because then came the MARKETING STUDIED, ANALYZED, RESEARCHED, SCIENTIFICALLY, PSYCHOLOGICALLY, INNOVATIVE "guys" to take over.

    They take your Quality Service and Support and put it in the list of strategies with ALL the other stuff just as important.


    So, noup, making sure you have Top Quality and Support service is not enough, like if it were some type of natural force that will make your company grow or transcend, just, no.
    Last edited by jagarco; 07-29-2011 at 06:30 PM.

Similar Threads

  1. Web Hosting & Web Design Business Setup - Web Seminar
    By deepak_k_rana in forum Systems Management Offers
    Replies: 2
    Last Post: 05-16-2011, 02:35 PM
  2. Replies: 13
    Last Post: 07-04-2010, 10:21 AM
  3. Complete Web Hosting Business + Dedicated Servers Business On Sale!
    By jailbird2 in forum Other Offers & Requests
    Replies: 12
    Last Post: 04-16-2005, 10:30 AM
  4. Business Partner Wanted To Help Run Web Hosting, ISP, Business
    By adaml in forum Employment / Job Offers
    Replies: 1
    Last Post: 08-20-2004, 07:46 AM

Posting Permissions

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