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12-17-2011, 06:10 PM #1Web Hosting Jedi
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Is there still money in web hosting?
Hello,
A few years back I used to run a web hosting company, which then grew and I sold. I am after creating another project, and looking back my web hosting was successful, so my question is before I spend loads of money on servers, is there still money too be made, or is there now too much competition?██ Boutique Host || Driven by our Uptime and Customer Service Record with proven 99.9% uptime.
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12-17-2011, 06:14 PM #2Retired Moderator
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Clearly people do make money, otherwise nobody would do it. Clearly others don't, as hosts fold every day. It's certainly a very crowded market, and I don't know how anyone can say whether or not you would succeed. With so many hosts handling risks or server management irresponsibly, if you do things well and right you're certainly in with a better chance than many. As to whether that's a guaranteed recipe for success ...
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12-17-2011, 06:39 PM #3Web Hosting Master
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If you have previous experience then it will certainly be easier for you
Check your sales agreement as often there is a restriction on how long it is before you can re-enter the market (usually three years)
The main issue now is the entry into the market of low priced, high specification hosts
Hosting prices have fallen by about 50%, however costs have fallen as well
Sadly Domain Name prices have increased, and continue to increase, equally customers don't seem to appreciate thisM8 INTERNET : Simple and cost effective website hosting from the UK
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12-17-2011, 07:01 PM #4Temporarily Suspended
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There will never be too much competition, as long as you have a somewhat unique offering and commendable service. Data is one of the only industries that is gaining demand exponentially, and web hosting is the consumer-driven front end (so, yes, there is money to be made). I would not say it's a market that anyone could succeed in; certainly there is fierce competition, and many hosts barely last a few months before tanking -- but if you have several years of perspective and know your way around a little, then you'll probably have a good chance.
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12-17-2011, 07:45 PM #5Hello World
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12-17-2011, 07:47 PM #6Rockin' the beer gut
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Last edited by Dougy; 12-17-2011 at 07:48 PM. Reason: extra period at end needed to go
AS395558
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12-17-2011, 09:27 PM #7Web Hosting Jedi
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Thanks for the heads up guys, I guess theres only one way to find out! The way I look at it now is to say I won't be making some of the mistakes I made first time around, as I now no how to avoid these
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12-17-2011, 10:05 PM #8Web Hosting Evangelist
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12-18-2011, 03:53 AM #9Web Hosting Master
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+1
Being profitable from first month is the major reason we have so many new hosts coming up everyday. If there was some entry barrier like capital investment web hosting wouldnt be as competitive as it is now. This is unfortunately true with almost all service related businesses.
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12-18-2011, 08:25 AM #10Web Hosting Jedi
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I agree, When I started out last time I didn't have loads of money, and I had the company for a few years. I no for a fact I was making money after the first month otherwise I wouldn't have been able to continue!
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12-18-2011, 09:13 AM #11Junior Guru Wannabe
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Of course there is money in Web Hosting, as others have said, if there wasn't then we wouldn't be seeing as many new company's appearing on a daily basis.
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12-18-2011, 10:07 AM #12Junior Guru Wannabe
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I have been lucky making money so far, but my company is smaller than most I beleive. Therefore I do not have massive expenses on a monthly basis.
I also do most of the support and accounting which allows me to save on those expenses.
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12-18-2011, 10:48 AM #13Junior Guru
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12-18-2011, 11:37 AM #14Retired Moderator
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Yep - it's all opinion on this thread. What don't you agree with?
Not as active on WHT as I used to be, but still drop in and receive email notifications from here.
My personal blog site: https://www.oakleys.org.uk/blog
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12-18-2011, 12:14 PM #15Web Hosting Master
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There is definatley money to be made if you play your cards right. In plain old Shared/Reseller hosting I am not so sure unless you can get clients locally or offer something really unique.
That said the amount of providers starting up and shutting down or selling is really going up. In the time since we started in 2006 I've seen a number of people start up and sell 2-3 times.
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12-18-2011, 02:02 PM #16Web Hosting Master
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It really depends on your business plan
With shared / reseller you need to have a large number of customers to cover your costs, and this is where many new starts fail
I am lucky in that I have very few local customers and don't really offer anything unique
Just simple, cheap, basic website hosting
One point of a business is to have an exit strategy
Many large companies have this and set this based on their business plan
I know of one such company that has effectively run the same business three times, run it for between 3 and 5 years, then resold it againM8 INTERNET : Simple and cost effective website hosting from the UK
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12-18-2011, 02:41 PM #17Hello World
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Yes, I have much experience as I am an investor in alot around here on WHT, After you have layed out a serious amount of cash I highly doubt you can see an "profit" within 30 days...
If you wish to know what experience I have then please PM me!
Any how we/I havent seen any of this "30 day" profit making scheme.
Or of course do you mean turning a profit from a $10 master reseller account, Am thinking more along the lines of quality hard ware, dedicated servers with cPanel licenses, CloudLinux, You know a "REAL" hosting platform...
And how many of these "hosts" are just using reseller accounts or low end VPSes...
Like I previously said seeing a profit from a master reseller account isnt the same as seeing a profit from a dedicated server with licenses, etc...
Their is a reason why LEB has a dead pool and theirs a reason why so many sell up here on WHT...Last edited by Server Management; 12-18-2011 at 02:49 PM.
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12-18-2011, 02:51 PM #18Junior Guru Wannabe
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Without getting into an argument. It is the same thing. If a $10 reseller is making $200 a month then that is a profit.
Yes if you invest thousands into proper platforms your profit is going to be more.
But profit is profit.Ten Net Internet Services
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12-18-2011, 02:58 PM #19Hello World
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But thats from a $10 reseller account and no the whole $200 will not be profit...
Dedicated servers with licenses, etc will exceed $200 to run, etc
Depends, Theirs alot of factors.
Correct but what am saying is that trying to turn a profit from a $10 reseller account is much easyer than trying to turn a profit from a $200+ dedicated server with licenses...Last edited by Server Management; 12-18-2011 at 03:04 PM.
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12-18-2011, 04:46 PM #20Junior Guru Wannabe
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So to get back on topic, there is money to be made from web hosting, the easy and quick route being reseller.
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12-18-2011, 04:51 PM #21Web Hosting Master
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12-18-2011, 05:05 PM #22Junior Guru Wannabe
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After your initial setup costs, lets say first month:
£20 reseller account
£100 domain reseller credits
£300 design services
Month by month after that with no advertising costs would rarely go above lets say £50.
On a reseller account of course.Ten Net Internet Services
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12-18-2011, 05:11 PM #23Web Hosting Guru
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If you are creative with your business ideas there is certainly money to made you just need to find a unique selling point that you can provide.
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12-18-2011, 05:29 PM #24Aspiring Evangelist
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Nope, no money at all, better quit now.
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12-19-2011, 02:16 PM #25Web Hosting Guru
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Whilst your costs and barriers to entry will initially be lower as a reseller, surely it is harder to differentiate yourself?
Gavin
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