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  1. #1
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    How do you make a profit from Web Hosting?

    This is one of those things I just don't understand. Costing thousands of dollars just for the server, then buying cPanel and the rest, how can it be done?
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  2. #2
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    Well it depends, you dont want to rush your money into something too big when you are not sure about making enough profit out of it so what you want to do is start little so you can grow. First thing to do is get a Reseller Hosting Account, sell webhosting once you get a good number of hosting accounts or people demanding for resellers or what not you move to a Dedicated Server, sell webspace once you get bigger and bigger you purchase more and more then when you think you have the knowlege you make a server and get colocation..

    Best not the throw your money into one thing and hope to win..

    Was with this one host who was rich, but he only had 100 customers and only needed 2 servers but he built his own servers and put them in 5 datacenters in different cages and what not, months later he closed down.. why? He put all of his money into one thing when he wasent sure if he was going to grow he just assumed he could do it and ended up closeing..

    Good luck to you..as to me
    Last edited by Frimon86; 11-26-2005 at 05:18 PM.
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  3. #3
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    Quote Originally Posted by RdSoxFan618
    This is one of those things I just don't understand. Costing thousands of dollars just for the server, then buying cPanel and the rest, how can it be done?
    Many different ways to get into the hosting business, as cheap as a reseller account for that matter, and the cost of your product should be based on your operating costs. This holds true for any business out there. You don't think your local food store sells you those steaks at less than it costs for them to get them, package them, price them, and sell them do you?

    If a product costs you $X in the end, add $Y to that and sell it to the customer
    Mike from Zoodia.com
    Professional web design and development services.
    In need of a fresh hosting design? See what premade designs we have in stock!
    Web design tips, tricks, and more at MichaelPruitt.com
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  4. #4
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    Quote Originally Posted by justadollarhostin
    Many different ways to get into the hosting business, as cheap as a reseller account for that matter, and the cost of your product should be based on your operating costs. This holds true for any business out there. You don't think your local food store sells you those steaks at less than it costs for them to get them, package them, price them, and sell them do you?
    Your wise MR!!

    Quote Originally Posted by justadollarhostin
    If a product costs you $X in the end, add $Y to that and sell it to the customer
    is that algabria? i can do it too sdfsfsdf+sdfsdfs928482823 XY+SDFSDFSDF = no solution.. (im kidding)

    justakidding

    Good advice!
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  5. #5
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    So I should begin with Reseller Hosting. So if I bought hosting for $4.99, they should pay me like 10.99 or something? What do you recommend for prices?
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  6. #6
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    First things first. You need to find a realiable "Reseller Hosting" provider. As a reseller, your Hosting company can only be as good as your providers.

    Here are some things to keep in mind:

    1. If your providers server is down, your customers blame you.
    2. If your provider doesn't answer support tickets in a reasonable amount of time, and you need them to fix something for your customer, your customer blames you.
    3. If your provider oversells, and the server gets overloaded, your customers blame you.

    So my advice would be to NOT go with the cheapest provider. Do some research, find a good company, test out there support team/response time. Doing things right in the beginning may take a little more time and money, but will save you much frustration later on down the line.
    Need a new Web Host?
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  7. #7
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    but I was thinking 1&1 which is one of the better servers around.
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  8. #8
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    But when they use the sitebuilder, won't they want to compare you to the actual seller?
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  9. #9
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    Quote Originally Posted by RdSoxFan618
    but I was thinking 1&1 which is one of the better servers around.

    I have used 1&1 for Domain Registration and there Customer Service/Support is absolutely horrendous. I am not sure how they are on Web Hosting, but I seriously reccommend you use the search feature of this forum.
    Need a new Web Host?
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  10. #10
    I've heard some not-so-good things about 1&1's webhosting. I'd reccommend JewlzK. They're who I got a reseller account from when I started out.

    Great support, awesome uptimes, and the admin is a decent guy

    (^^ is not me, just so you know.)
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  11. #11
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    R u fricken kidding me? That's 20 dollars. And I'm a beginner!
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  12. #12
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    I hope that was a joke, starting a business with less than $20 a month to speed is not a good idea.
    Mike from Zoodia.com
    Professional web design and development services.
    In need of a fresh hosting design? See what premade designs we have in stock!
    Web design tips, tricks, and more at MichaelPruitt.com
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  13. #13
    Quote Originally Posted by RdSoxFan618
    R u fricken kidding me? That's 20 dollars. And I'm a beginner!
    And to that I would say "Are YOU kidding?"

    It takes money to make money - in any business. Don't just assume that web hosting is a get rick quick scheme. It takes just as much planning and time as it does to build any other type of business.

    If you are concerned about spending $20 a month, don't even bother.
    SuperWebHost.com, a Digitally Justified Company
    Celebrating our 9th year in Business

    Proudly Hosting with CANADIAN bandwidth
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  14. #14
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    nah I have more than 20 but I wanted to start out small
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  15. #15
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    So when you get those plans, can you resell them to MORE than one person???

    And got any tips to help get customers?
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  16. #16
    It's wise to start small, but if you get a provider that is unreliable, it's money/time wasted because you won't get off the ground.
    SuperWebHost.com, a Digitally Justified Company
    Celebrating our 9th year in Business

    Proudly Hosting with CANADIAN bandwidth
    Managed Hosting, Multi-Domain Hosting, Colocation, Merchant Accounts
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  17. #17
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    Would starting this business with another person help? 2 Heads are smarter than 1
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  18. #18
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    Well the first thing you need is a business plan.
    Need a new Web Host?
    Become a Host Refugee and receive TRUE 24/7 Support

    cPanel + Fantastico, PHP4 or PHP5
    HostRefugee.com - See our current promotions
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  19. #19
    Quote Originally Posted by RdSoxFan618
    R u fricken kidding me? That's 20 dollars. And I'm a beginner!
    I think you should probably start out smaller, if you don't have $20 to spend to start your business. I recommend a lemonade stand.

    All kidding aside, to start up a simple reseller 'business' with under $50/month to spend is pushing it. If you want to start it totally from scratch (without being a reseller, or working under someone), I'd allocate $5000. And even that wouldn't give you a whole lot to work with.
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  20. #20
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    So I'm starting to get this. Such on http://www.digitallyjustified.com/reseller.php
    You can host 15 Domains with 5 GB Each for 30 dollars a month???

    How would you get customers though? I'm intrested in starting out this way.
    I just wanted to know if each customer gets 5000 MB or 5 GB and 1 Domain. Okay So now my main question is how can I get customers? btw HostRefugee-Vince, congrats on almost reaching 500 posts
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  21. #21
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    Lol Genius, I am way past knowing that and have already answered it
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  22. Who said you had to have a server? Just get a reseller. it is cheaper. i found a 40 gig space reseller for 20 dollars a month. And you can never know if you will make a profit or not. but chanes are you will. First of al lyou will make money selling web hosting, you can add ads in your website and more. IF you have a server it is not hard to make a lot of money. sell resellers and VPS with it
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  23. #23
    Quote Originally Posted by RdSoxFan618
    So I'm starting to get this. Such on http://www.digitallyjustified.com/reseller.php
    You can host 15 Domains with 5 GB Each for 30 dollars a month???

    How would you get customers though? I'm intrested in starting out this way.
    I just wanted to know if each customer gets 5000 MB or 5 GB and 1 Domain. Okay So now my main question is how can I get customers? btw HostRefugee-Vince, congrats on almost reaching 500 posts
    Nope, that means you get you have 5 gb to split between all 15 domains. Personally, I would search around for a better deal- that's not a lot of resources, even jsut to start out.
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  24. #24
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    Holy Snap! Yeah not enough to go around Thanks Genius
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  25. #25
    Quote Originally Posted by RdSoxFan618
    Lol Genius, I am way past knowing that and have already answered it
    Oops, sorry- this thread is getting like 5 new replies a minute! It's hard to keep up!
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  26. #26
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    So like I would say, if you had let's say 10 GB of Disk Space for the month, you would probably end up getting about 5 Buyers with about 2 GB each because that is really a good amount of Disk Space for 1 customer?
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  27. #27
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    Anybody got AIM that could give me live support... IM me, I'm RdSoxFan618
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  28. #28
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    Quote Originally Posted by RdSoxFan618
    nah I have more than 20 but I wanted to start out small
    Unless you can afford at least $100/mo (not a set in stone figure) I would not even think about it. A better idea would be to get yourself to the point where you can dump in $100 a month no problem, extra as needed, and have several thousand in the bank for startup costs.
    Mike from Zoodia.com
    Professional web design and development services.
    In need of a fresh hosting design? See what premade designs we have in stock!
    Web design tips, tricks, and more at MichaelPruitt.com
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  29. #29
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    You mean start out at 100? Ain't that just a little risky??? I'd rather start out at 20... get a few customers, then expand.
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  30. #30
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    Quote Originally Posted by [email protected]
    Who said you had to have a server? Just get a reseller. it is cheaper. i found a 40 gig space reseller for 20 dollars a month. And you can never know if you will make a profit or not. but chanes are you will. First of al lyou will make money selling web hosting, you can add ads in your website and more. IF you have a server it is not hard to make a lot of money. sell resellers and VPS with it
    Buying a plan like that will get you in trouble, 99.9% ( well 100% ) of the time the host who sold you that type of deal is already overselling the server.

    How many 40gig accounts do you think you can place on a server?

    IF you have a server it is not hard to make a lot of money. sell resellers and VPS with it


    Can I send you our monthly colo bills, how about employee payroll, processing fee's, office electric bill...

    The only advice I can give is look at a few reseller plans and site down with some paper and a calculator.

    The come up with a starter business plan.

    Things you need to ask yourself is payment type, billing software ( free stuff or non-free stuff ), are you going to offer domain names ( registrar cost + any membership cost )

    Thatís a good starter list.
    Robert Merrihue - President/CEO
    http://www.bethehost.com
    Where resellers become a host on servers we own and operate.
    Web Hosting Since 2000 *** 12+ Years in the hosting industry
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  31. #31
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    $100 a little risky? People have tossed millions into startups with high risk. The way you are saying it is: I'm not sure if I will be able to get customers, so I don't want to put much money into it.

    How about saying this instead: I know I can get customers if I do ______ because no other hosting company is doing ______. If I do ______ the people in ________ market will love it. ______ will cost me $xxx so that's how much money I need.

    I can see your next post now: But I don't know what I can do differently!!!!

    Don't even bother unless you can figure that out. Before even thinking about getting a reseller account you need to sit down and figure out the two most very important things to make money.

    1. What customer group will I target?

    Do not say small business, shared hosting, etc... as it is just a waste of a market. A. everybody and their brother targets these markets. B. They are way too wide to be a profitable market for a startup host.

    Japanese women who enjoy anime, play Yu Gi Oh, and have a love for anythign and everything Pink, that also want to use CPanel as their control panel, but grin when they see a custom skin, and need night time support as a high priority due to the difference in time zones. That is a good target market right there.

    Now that you have your target market, figure out what you need to make those people really enjoy your hosting. Maybe it's free anime templates, maybe it's vouchers for free Anime at some retailer for each signup they produce for you, make sure your site looks appealing to them (I would not expect that market to want a dull and cold looking website), etc...
    Mike from Zoodia.com
    Professional web design and development services.
    In need of a fresh hosting design? See what premade designs we have in stock!
    Web design tips, tricks, and more at MichaelPruitt.com
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  32. emploee? wtf are you talking about? just ask someone and they will do it. You can also trade stuff. i traded a shoutcast server for a reseller. i odn't have to pay for virtually anyhitng. So i get 100% profit. Dude go on any forum and ask people if they want to be " Admin" or "moderator" at you site and they will do it for free
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  33. #33
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    Quote Originally Posted by [email protected]
    emploee? wtf are you talking about? just ask someone and they will do it. You can also trade stuff. i traded a shoutcast server for a reseller. i odn't have to pay for virtually anyhitng. So i get 100% profit. Dude go on any forum and ask people if they want to be " Admin" or "moderator" at you site and they will do it for free
    Ya we are talking starting a real business, not trading services.

    hey I will trade you space for root access, I mean you like to trade
    Robert Merrihue - President/CEO
    http://www.bethehost.com
    Where resellers become a host on servers we own and operate.
    Web Hosting Since 2000 *** 12+ Years in the hosting industry
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  34. #34
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    Quote Originally Posted by [email protected]
    emploee? wtf are you talking about? just ask someone and they will do it. You can also trade stuff. i traded a shoutcast server for a reseller. i odn't have to pay for virtually anyhitng. So i get 100% profit. Dude go on any forum and ask people if they want to be " Admin" or "moderator" at you site and they will do it for free
    You get 100% profit? Nice to see you value your time.

    Going on to a forum and trading stuff to keep a business alive is a terrible practice and it only takes one of those "Admins" to screw up your server.
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  35. #35
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    So Justadollarhostin like this
    I know I can get customers if I do cheaper hosting because no other hosting company is doing it. If I do cheap hosting the people in the budget market will love it. Cheap Hosting will cost me "a few more buyers" so that's how much buyers I will need then normally?

    Something like that as a quick go?
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  36. #36
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    Is there like.. any forums of hosting thirsty people that I can advertise on? Because I think it's easier to just target a big audience rather than find people of one group although if I found a forum as justadollarhostin said, if I find an anime forum like Yu Gi Oh or InuYasha, and tell them about this, I'm just not sure how many of those people would want to buy it. I could test it... which I think I'll give a go ar
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  37. Quote Originally Posted by FLH-Wullie
    You get 100% profit? Nice to see you value your time.

    Going on to a forum and trading stuff to keep a business alive is a terrible practice and it only takes one of those "Admins" to screw up your server.

    And the trade is on forever.i i don' need to keep trading. and don't give them WHM acess. only for live support and stuff. And wen i fill up the space for the reseller, i will have enough money to buy 2 more resellers. So it will grow
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  38. #38
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    Apologies for jumping in a thread and no doubt taking it off topic.

    Profit and web hosting are a hard mix.

    If you are starting a new business, the best option is to run away from web hosting and look for something a 'lil more innovative, and a 'lil less overcrowded.
    Olly | INX-Gaming
    Call of Duty 4 hosting
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  39. And wat culd that be? Radio host? or something?
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  40. #40
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    I've my eye on 4 niché markets at the moment. Take a look around, do some research. Don't limit yourself to *just* hosting. There's so much you can do on the web.
    Olly | INX-Gaming
    Call of Duty 4 hosting
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