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  1. #1

    How much profitable is web hosting business?

    I am planning to start web hosting business.
    Already who are in the business please guide me.
    What is the potential and margins in the business?

  2. #2
    Join Date
    Jun 2011
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    Quote Originally Posted by pratikbhalodiya View Post
    I am planning to start web hosting business.
    Already who are in the business please guide me.
    What is the potential and margins in the business?
    Do you mean you want to be a reseller????

  3. #3
    Join Date
    May 2009
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    What type of hosting are you looking at? Do you have a plan for your business?

  4. #4
    Join Date
    Mar 2003
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    WebHostingTalk
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    16,966
    Moved > Running a Web Hosting Business.
    Specially 4 You
    .
    JoneSolutions.Com ( Jones.Solutions ) is on the net 24/7 providing stable and reliable web hosting solutions and services since 2001

  5. #5
    What's your budget? And, what kind of hosting services are you going to offer? E.g. Shared or VPS etc etc.

  6. #6
    Join Date
    Jul 2005
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    In the Internets
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    Expect to make $5 the first 6 months.
    Expect to make $15 the first 12 months.
    Expect to make $50 the first 24 months.

  7. #7
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    Jan 2011
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    Nevada
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    Quote Originally Posted by nerdie View Post
    Expect to make $5 the first 6 months.
    Expect to make $15 the first 12 months.
    Expect to make $50 the first 24 months.
    Pretty much this. A lot of this business requires building a reputation. If you try to price compete you'll need to oversell like crazy. This is not an easy business. There are thousands of companies who you will be competing with, and a large majority probably have a much higher sales and advertising budget than you will.

    If you're willing to be patient, keep your servers well maintained, and have some awesome customer service... you may just get somewhere.
    PlusWebHost.com - 24/7 Phone Support
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  8. #8
    A couple of web hosting company owners fly private planes. Think of how many others don't, though, to form a balanced view.

    PlusWebHost offers you a real gem of advice there. Read his post twice!
    An ITX Design Hosting Company
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  9. #9
    Join Date
    May 2008
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    Missouri
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    Everyone above me is right.

    Remember to be sure that you can afford to stay in business even if you have 0 customer signups for 2 years. Building reputation is very important, and if you can stay in the industry for a while regardless of how well you're doing, you should be fine (assuming you keep good reputation). And to answer your question, it all depends. Some hosting providers are multi-millionaires while some are still making $5/year. It just all depends on how well you administrate and manage your business and how well you're doing. No one can tell you exactly how much you're going to make. I'd say if you're doing *well*...5 years in you'll be doing 5-6 figures net.
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  10. #10
    As profitable as any reliable business these days. There is competition every where so focus on service. The lower you can get the servers / bandwidth the more easier it will be to compete. Best of luck to you!

  11. #11
    Join Date
    Mar 2004
    Posts
    522
    Just what everyone said. Web hosting is a very saturated business with a huge market, so you're going to have a lot of competition. In order to succeed, you're going to need a solid business plan and solid execution.

    The main question you should ask is what you will provide that other businesses won't. Sometimes, it may be as simple as a physical presence in a certain part of the market. Other times, it may be targeting a certain technology.

    Basically, it's just like any other saturated business: it's not easy, but if you get everything together and run it well, you *might* succeed.

  12. #12
    Join Date
    Jul 2010
    Posts
    134
    Also, the design of your website is vital to the success of your business. When people visit your site, they want to see what you have to offer (web hosting in our case), and they decide this during their first impression of your site and your business.

    Before even getting into the details of your business, people can judge and decide that it is valid so a first impression is important, but it isn’t everything..

  13. #13
    Join Date
    Mar 2010
    Location
    Chennai
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    First, you don't come into a saturated industry with profit as your only motive (it is the ultimate destination for everyone, but it should not be the only one). And so, you need to figure out how you can compete with the other providers out there and try to show yourself apart from the crowd.

    And mind you, not everyone can run a successful hosting business for more than two years if they come with a vague plan and profit motive. You need to be dedicated, need to make sacrifices and be ready for tough challenges ahead.

    But having said that, I would also go ahead and say that web hosting is one of the very rewarding industry if you are ready to endure the aforementioned.

    And finally, try to do a lot of ground work (all that you can!!) before you start a "hosting" business. All the best.
    "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

  14. #14
    Everyone always mentions competition, and it's important. But lots of competitors exists because demand is so high. It's still easier to find clients in a crowded marketplace than a slow-moving niche with low demand.

    You're in real trouble when you have hardly any competitors, because it means demand is low. Competitors help stimulate demand.
    An ITX Design Hosting Company
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    http://itxdesign.com
    tel. (866)-577-1442

  15. #15
    Join Date
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    Quote Originally Posted by MostHost View Post
    You're in real trouble when you have hardly any competitors, because it means demand is low. Competitors help stimulate demand.
    I've never thought about it like this. Good words of wisdom
    PlusWebHost.com - 24/7 Phone Support
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  16. #16
    Be ready to be patient. Keep a cool head, focus on support and keep on going. Never fall asleep at no one time.
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