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  1. #1
    Join Date
    Nov 2005
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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
    Join Date
    Oct 2005
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    837
    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
    Join Date
    Sep 2004
    Location
    Flint, Michigan
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    5,766
    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
    Join Date
    Oct 2005
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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
    Join Date
    Nov 2005
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    38
    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
    Join Date
    Dec 2002
    Location
    Quad Cities, Iowa
    Posts
    1,606
    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.
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  7. #7
    Join Date
    Nov 2005
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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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    Nov 2005
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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
    Join Date
    Dec 2002
    Location
    Quad Cities, Iowa
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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
    Join Date
    Nov 2005
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    R u fricken kidding me? That's 20 dollars. And I'm a beginner!
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  12. #12
    Join Date
    Sep 2004
    Location
    Flint, Michigan
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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
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  14. #14
    Join Date
    Nov 2005
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    38
    nah I have more than 20 but I wanted to start out small
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  15. #15
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    Nov 2005
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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
    Join Date
    Nov 2005
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    Would starting this business with another person help? 2 Heads are smarter than 1
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  18. #18
    Join Date
    Dec 2002
    Location
    Quad Cities, Iowa
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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
    Join Date
    Nov 2005
    Posts
    38
    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
    Join Date
    Nov 2005
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    38
    Lol Genius, I am way past knowing that and have already answered it
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  22. #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
    Join Date
    Nov 2005
    Posts
    38
    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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