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Thread: startup

  1. #1

    * startup

    hello, im in canada, and i wnt to start a webhosting company, do i need to register anything? from the governemt? etc, and if people were to call in, how would i go about charging them? do i ask for their credit card, or what? im pretty new to this so any help would be apreicated, also, what about didication servers, can you host websites with dedicated servers? thanks

  2. #2
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    Alright

    To run a hosting company legaly you need a license to operate a business. Contact your local ministry and ask them what number to call for a business license.

    If someone calls in and you would like to charge them you will need a 3rd party merchant account. I reccomend utilizing PayPal just to get your feet wet since their service is free and you can accept credit cards via your website.

    As far as servers are concerned you will probably want to start off with a reseller plan. That will allow you to host unlimited domains.

    I use matrixreseller.com and they have unix reseller hosting plans starting at $20(US) a month that should serve you pretty well.

    Also you will need to get a free account setup with a domain registrar. My suggestion is GoDaddy.com the account is free. This will allow you to manage registration of the domain names.

    Hope this help

  3. #3
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    Re: startup

    Originally posted by CastorTroy
    hello, im in canada, and i wnt to start a webhosting company, do i need to register anything? from the governemt? etc, and if people were to call in, how would i go about charging them? do i ask for their credit card, or what? im pretty new to this so any help would be apreicated, also, what about didication servers, can you host websites with dedicated servers? thanks
    First off, I would advise you to check for spelling and grammar errors before replying to your clients with such horrible format.

    As far as registration, contact your local business office regarding company registration, phonebooks do wonders. I'm Canadian as well. It came to about $85 I believe including a trademark search.

    I'd suggest NOT starting with reselling, I'd never recommend this to anyone. Reselling packages have many limitations on what you can offer, customize, etc. Dedicated servers are probably the best way to start.

    As far as billing and whether or not you can host "didication" servers, I'd highly recommend doing a little research before jumping into webhosting. You have a long way to go. Research your options.
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  4. #4

    Re: Re: startup

    Originally posted by Amdac


    I'd suggest NOT starting with reselling, I'd never recommend this to anyone. Reselling packages have many limitations on what you can offer, customize, etc. Dedicated servers are probably the best way to start.

    I have to disagree with you on that one. If they don't have the skills to manage a server, it can be a absolute disaster.

    And even if they hire someone to completely manage their server, they still need to understand and answer common support questions for their customers.

    Starting as a reseller provides an ideal enviroment to learn these things, as you can always contact your reseller provider should you have trouble answering your customers questions.

  5. #5
    Yeah, I'd hardly advise anyone to jump into hosting using a dedicated server. Start with a reseller account and build up clients and a reputation, and then when you and your company have outgrown the reseller world go dedicated. This will minimize start up cost and profit lost until you gain more clients and are able to financially afford a server and pay for proper administration.

    You could always get a cheap dedicated during this process and use it as a learning tool in which to try out and familiarize yourself with different operating systems and control panels.

  6. #6
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    Re: Re: Re: startup

    Originally posted by Professor
    I have to disagree with you on that one. If they don't have the skills to manage a server, it can be a absolute disaster.
    If you can't manage a dedicated server, you shouldn't be doing webhosting, period.

    I started with dedicated servers. I learned linux playing around with my own computers. It is essential that you know the software and o/s you are dealing with before hand.
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  7. #7
    Amdac, in an ideal world, I would agree with you.

    But in this world people are going to startup in this biz with only minimal skills, whether we like it or not.

    Why I was in disagreement was simply because I would much rather see these people in reseller accounts where at least the server is taken care of.

    btw CastorTroy, I am not implying anything about you or you knowledge level with this post.

  8. #8
    If you can't manage a dedicated server, you shouldn't be doing webhosting, period.
    This is completely correct, to run a web hosting business you MUST be able manage a server. You will loose clients very quickly if you do not know how to manage a server, and you should not use your first clients as "testing clients", you should learn before you actually get the clients.
    crucialparadigm - Affordable, Reliable, Professional :
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  9. #9
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    Have a nice fast loading website, provide good support turnaround, have a detailed knowledgebase/faq. A reseller account is ideal because your reseller will have to take care of managing the server at start and if you were asked any questions you didnt know you can always refer back to your reseller. Dedicated servers are expensive to start with (good ones) instead of that you can provide or outsource 24-7 support which is crucial in the long-run. When you are choosing a reseller account see what value added services they provide i.e. Fantastico.

    Make up a budget for advertising and best of luck!
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  10. #10
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    Agree with above comments. People who can't manage their own server without some cpanel shouldn't be taking money from other people! What can they do when things go wrong? To me its just irresponsible to do things like not have a plan for things like cpanel breaking, not running regular and good backups, etc.
    Cost should not be an issue. A cheap SM box is hardly more than a reseller account and probably more reliable. If the $50 or whatever makes that much of a difference, you don't have much stability in your business to offer your customers. Hosts need to remember that they have a responsibility to their customers, not just cut corners to maximize profits then fly by night once a server goes down or something.
    That said, I'm setting up my first box with cpanel on it. Eek. Everything else been debian + emacs as a configuration tool. Cpanel scares me

  11. #11
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    Maybe those people should become affiliates then
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  12. #12
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    Originally posted by Yaser
    Dedicated servers are expensive to start with (good ones) instead of that you can provide or outsource 24-7 support which is crucial in the long-run.
    Once again, if you can't afford a $200/month server, you shouldn't be doing webhosting either. This is why so many webhost companies fail. People think they can start with $40 and no knowledge whatsoever. It doesn't work. People will ask for support and you need to be able to provide it. If you can't, don't start webhosting until you learn.
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  13. #13
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    I was talking with reference to reselling, many people start as a resellers for packages like 40$ a month, you can see Autica, Thrill Host, Httpme and etc. They provide you good features and space/bandwith to start off with. So why should someone jump to a 200$ a month server directly? when he/she grow they can easily move to the dedicated server! Instead some money can be spent on providing good support, marketing etc.
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  14. #14
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    Re: startup

    Originally posted by CastorTroy
    hello, im in canada, and i wnt to start a webhosting company, do i need to register anything? from the governemt?
    Lack of management experience accounts for nearly all of all small business failures.

    I suggest you start by learning what it takes to run a business.

    http://businessgateway.ca/

  15. #15
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    Its not that you can't start with a small plan. But if you're getting into the web hosting business, you should be fairly knowledgable about the field you are working. I guess it just happens that most people with knowledge about the industry also happen to be able to afford more expensive startup packages and are willing to do so because they know it means they have more control over things getting fixed when things go wrong.

    It's okay to start with a small package. But once you can afford it, you better know enough to move over to a dedicated server or at least have enough business sense to hire someone to manage it for you. If you have no control over the hardware, user loads, software setups, etc. how are you supposed to make your service any more reliable than the rest? You can't. All you can sell is your support and your disk/bw numbers. And if someone is asking if you can host web sites on a dedicated server, then all they're left with is your disk/bw numbers, because I do not see how much support you could offer.

    My point is that too often people who start on reseller don't have the technical know-how or business sense to know how to run a dedicated server. At the end of the day the people who know how to run servers last long term. Those that don't crash and burn after the first major outage.

    People who start with expensive packages are usually the ones that realize that web hosting is a hard business to break into and do it anyways. For that reason they tend to suceed more than people who think oh wow look how cheap a reseller account is, I can get rich quick!

  16. #16
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    Very nice link Chad! can be reffered to canadian clients! thanks once again
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  17. #17
    thanks alot for the imformation guys, i guess im NOT going into webhosting, just kidding, im going all in. thanks for the help.

  18. #18
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    Originally posted by Yaser
    So why should someone jump to a 200$ a month server directly?
    Most people would rather deal with a host that knows what they're doing. Resellers can not provide prover support or customizations to server software, etc. Resellers have no control over their own security and the rely on other webhosts which increase their chances of failure. Paying more for a dedicated server provides stability and security between the host and their clients.
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