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  1. #1

    * Starting a local webhosting company from 0

    Hi Everybody,

    My querries are going to be quite general, since I am planning to start a local webhosting service from 0, and my target is to achieve 1000 client by the end of this year !!!

    It could be possible, it also could not. But the whole point I would like to clarify my technical budget for a year ahead by asking the following questions...

    What is the level of importance of having a server administrator who has first level of knowledge? is it important to hire some one from the beginning?
    Are there other alternatives to outsource the server management?
    Are there companies who handle all server issues as well as support issues?

    Planning a year ahead, what is the most suitable server for such a company? Bandwidth? CPU? total space?

    What kind of SSL certificate to is recommended for 1000 users?

    And finally approximately how much budget would you ensure for a company planning to gain 1000 clients within 1 year, if we dont consider the marketing expenses, but only the technical ???

    I am really interested in your opinions before I start executing ... and would really appreciate your participation

    Cheers

  2. #2
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    1000 clients within a year from zero is a seriously high target!
    Do you believe you can achieve that?

    No-one can give you figures, not any that can help - there are so many things which can influence your finances, but to get 1000 new clients within 12 months would require an insane budget to even get close to - this is guesswork from me though because there could be 1000 local clients for you in your city needing web services.

    Before you start "executing", just step back and consider what you want to achieve and how you want to do it - to succeed and get 1000 clients in a year from none you already need to know how, because it'd take a lot of work! But first think, how are you going to be different than the thousands of web hosting providers out there? Because if it's not new, different or unique, you will never see 1000 new signups a year.

  3. #3
    Before you start "executing", just step back and consider what you want to achieve and how you want to do it - to succeed and get 1000 clients in a year from none you already need to know how, because it'd take a lot of work! But first think, how are you going to be different than the thousands of web hosting providers out there? Because if it's not new, different or unique, you will never see 1000 new signups a year.
    Thank you @ iexo for your reply, I am aware of the fact that this is a high target, I am also aware of the fact the the service needs to be too unique for that....

    But I am mainly interested of the technical facts !!!

  4. #4
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    Quote Originally Posted by ahmadempire View Post

    And finally approximately how much budget would you ensure for a company planning to gain 1000 clients within 1 year, if we dont consider the marketing expenses, but only the technical ???
    Honestly, for a brand new startup, your marketing budget would most likely exceed your technical budget in order to obtain 1000 clients within that time frame.
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  5. #5
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    Why you go with dedicated server?

    If you start from 0 i suggest you go with Managed VPS it will cover your server administration issue very well. And help you to focus on your 1000 client target.

    even you can go with Reseller hosting too, and some companies also offer End user support

    after getting experience you can go with dedicated server, BTW 1000 client is big target for new company, but if your local market have that much potential then i think you cover it i hope you done your ground work, you must have some facts and number for your new potential clients
    Last edited by VMakerHOST; 01-09-2014 at 03:15 PM.
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  6. #6
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    It almost sounds like you wanna buy 1000 new clients by advertising. With that my guess would be around $7,000 or so - for marketing. Probably more.

    Technical shouldn't be too much. Most questions will be simple and things you would already have in your kb that your clients didn't check before making the ticket I wouldn't bother outsourcing even. Just be available.

    If you're on a reseller package, your host would handle the technical aspects of the server that you do not have access to.

    Start with a reseller package. You can probably load 150 - 200 clients on before you would need a VPS or dedicated server. Most won't use hardly any resources at all.
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  7. #7
    VMakerHOST
    Why you go with dedicated server?
    If you start from 0 i suggest you go with Managed VPS it will cover your server administration issue very well. And help you to focus on your 1000 client target.
    Thank you for your reply. The only reason I am planning to go with dedicated is because some of my clients that I already have in the list have many thausands of visitors and they would move to my hosting as soon as it is ready...
    I am a bit worrying that the VPS will not be enough of a stable solution...

    rits
    It almost sounds like you wanna buy 1000 new clients by advertising. With that my guess would be around $7,000 or so - for marketing. Probably more.
    Technical shouldn't be too much. Most questions will be simple and things you would already have in your kb that your clients didn't check before making the ticket I wouldn't bother outsourcing even. Just be available.
    Thanks Rits, your technical sounds good, if I would have enough patience for it

  8. #8
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    Quote Originally Posted by rits View Post
    It almost sounds like you wanna buy 1000 new clients by advertising. With that my guess would be around $7,000 or so - for marketing. Probably more.
    Please tell me where you're finding hosting clients for $7 ad spend
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  9. #9
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    Quote Originally Posted by keliix06 View Post
    Please tell me where you're finding hosting clients for $7 ad spend
    Not sure what you mean. I think you misunderstood the post possibly.
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  10. #10
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    Quote Originally Posted by rits View Post
    Not sure what you mean. I think you misunderstood the post possibly.
    He is saying that your math is a little odd.

    Quote Originally Posted by rits View Post
    It almost sounds like you wanna buy 1000 new clients by advertising. With that my guess would be around $7,000 or so - for marketing. Probably more.
    That works out to $7 per client. The industry average has historically been around $100 (thats why affiliate programs pay so much)

  11. #11
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    Quote Originally Posted by ahmadempire View Post
    My querries are going to be quite general, since I am planning to start a local webhosting service from 0
    Well the general answer to that general query is simple - Just Don't :p

    Quote Originally Posted by rits View Post
    It almost sounds like you wanna buy 1000 new clients by advertising. With that my guess would be around $7,000 or so - for marketing. Probably more.
    You missed 2 zero's off the marketing budget
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  12. #12
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    Quote Originally Posted by AcclaimedHost Alan View Post
    That works out to $7 per client. The industry average has historically been around $100 (thats why affiliate programs pay so much)
    Agreed, the general CTR is really low unless you're a known brand, and for the money keywords my fingers get tired of typing before I even get close to the max bid, some of the players are easily sinking in $100 a day per generic ad though through both impressions and clicks, with even higher maximums for targeted impressions. To roughly put it into perspective, to advertise on digitalpoint globally as a top bidder, you're spending about $3.50+ every few minutes on PCM - and aggressive campaigns like that are pretty much the only way you'd get 1000 new signups. I personally can't even budget to advertise on a forum like that globally, and I'm certainly not poor - when you're paying $3.50+ per 1,000 impressions to be the top bidder, but then 1,000 impressions is every few minutes (globally), it quickly adds up!

    PPC/PCM is like gambling to me, I do enjoy it too - but damn I'm glad I set up daily limits as I'd blow through insane amounts "just experimenting" otherwise.

    Consider also that you have to keep these clients, not just find them.
    Last edited by iexo; 01-09-2014 at 08:34 PM.

  13. #13
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    Quote Originally Posted by rits View Post
    Not sure what you mean. I think you misunderstood the post possibly.
    You said your guess for getting 1000 clients through advertising would be $7k.
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  14. #14
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    I think it could be done for around $7,000 - $10,000 unless you're using some kinda adwords program.

    That's my feeling. Others may disagree.
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  15. #15

    Budgeting of the server and installation costs

    Hey Guys,

    I guess I got the point of Ahmadempire's question and he received still no relevant answer, though i would be interested also, that is why i reply:

    He just wanna know an estimated budgeting for a quality server and its maintenance costs, and please exclude all marketing and support services costs. A server itself(dedicated or VPS?!) which could serve 1000 clients without troubles.

    I also wonder about a realistic "cost-range", because I'm also at the planning part and unfortunately not a server expert.
    So what do you think, how much should he plan for a dedicated server costs/year in case he expects 1,000 clients?

    Thank you very much in advance!! GL HF
    cheers

  16. #16
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    Personally, I think your approach might be a little backwards. Do not focus on gaining a certain number of clients, but rather set financial goals. Example.. 1k profit after year one. Afterall, you dont want to end up with 1000 clients, yet -10k on the year.

    Just something to think about :-)
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  17. #17
    Thank you for the nice hint, I can totally agree with you.

    On the other hand, i must shortly share our background with you why do I have this "type" of question:

    let suppose we already have the 1,000 clients who are mostly beginners in webhosting, and we want to create our own hosting company to host their domains. We would like to know what kind of server do we need to think about and how much will it cost per year if we can exclude marketing expenses which is normally a significant portion in web hosting industry.

    Wondering about all of your ideas, each of them are highly appreciated and welcome!
    thank you!
    kind regards,
    peter

  18. #18
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    If you feel like you need a dedicated server:

    Ask yourself -- do you have the server management experience to solve clients' issues and answer their questions? If so, I'd go ahead and get a bare metal server and install cPanel. If not, I'd recommend going with a managed provider like WiredTree or KnownHost. That way, if you have a problem, you can just ask the people who are managing your server. This can still work out quite profitably for you if you are able to get a good deal on your server.

    My main recommendation, however, would be for you to get a reseller account and focus on building up your business. Use the reseller account to get your first clients, get things set up, and when you're ready to take the plunge and get a dedicated server (or perhaps a VPS), you can do that later. But a reseller account keeps everything simple in the beginning until you're ready for the extra burdens of server management.

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