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  1. #1

    Thumbs up Starting up real soon, need a few opinions

    Alright, I made my first post here a few months ago, and had intentions of starting my own reselling business. Well, things got hectic here, I am working 50+ hours a week with 2 jobs.. so that was put on hold. Well, as time has went on, things have calmed down and I'm ready to get started again, hopefully by christmas this year.

    But this time, I feel going the reselling method is not right for me. As of now, I am hosting 2 websites, one of which is really beginning to take off and will soon need a dedicated server to handle it anyway. So, my plan was to either co-locate or get a dedicated box through fastservers or rackshack or something to host my couple websites. Then, since I will have more than enough bandwidth/space, and cpanel/WHM already installed, why not make the extra space make $$$ for me?

    I was going to start up a hosting biz regardless, but considering my sites need a bit faster than a mid-grade shared server anyway, I thought this would be a perfect opportunity to get both going off on the right foot. Not to mention, I also have a few websites/domains floating around in my head I would eventually like to start up, but hosting gets expensive when you're paying 20/month for 3 sites all on different shared servers. So I could also bring these ideas to life.

    So.. just wondering if this plan of attack would be acceptable or not? IMO I think it would suit my needs great, since I already have the domain registered for the business, I have my plans pretty much calculated out, oh, and also... this is the big kicker. I have about 3 or 4 users of my one website who are not satisfied with their host, and would like to switch to me when I get this going. So.. 4 clients right from startup isn't too bad I don't think.

    Also, just to clarify, I'm not looking to become a huge and get rich operation, I am offering hosting for a smaller segment of the market, or niche, and although I may eventually be able to possibly live off from the income it produces, I understand I'm not going to become the next rackshack or anything. Its just a hobby I enjoy doing, and if I can help people out and make some cash on the side, that would be ideal.

    So... with that being said, am I looking at realistic expectations here? If so, what are your suggestions for billing. I have read the many threads on here regarding the new VISA policies.. , I've read all about 2CO, all the 3rd party operations.. and I'm still a little unclear on merchant accounts, and if that would even be appropriate for a startup without a lot of money coming in.

    Any suggestions or comments are welcome. Thanks!

  2. #2
    one thing for sure, DO NOT USE 2CHECKOUT. would be better.

  3. #3
    Originally posted by vegs
    one thing for sure, DO NOT USE 2CHECKOUT. would be better.
    Thanks, I have read nearly every thread here regarding companeis like 2co, revcom, etc... I was just throwing them out as an example of a billing method

  4. #4
    Join Date
    Jan 2002
    Originally posted by vegs
    one thing for sure, DO NOT USE 2CHECKOUT. would be better.
    Yup I agree.
    They sent my cheque and it arrived quickly. They answered my support requests in a reasonable amount of time and have no other problems....

  5. #5
    Well, I won't be using either of those, so I should be just fine

  6. #6
    Join Date
    Sep 2002
    Green Bay, WI
    I think your plan is pretty sound, and you may find that as time goes on, that hosting can be a fun industry to be in. Renting your own machine is definetely the way to start, we are now just converting from renting to owning our own hardware and co-locating with a major dc. One day, we hope to have our own lines.

    Regarding the merchant account, get one from your local bank. I know they are more expensive, but the service will be much better if you can walk down there and talk to someone if you run into trouble.


  7. #7

    how are you with linux administration? since rackshack, reselling vs. dedicated hasnt been a financial issue, but rather a 'can i handle the administration of my own server' issue.

    good luck,
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  8. #8
    As for linux administration, I can do fairly well. I run redhat 7.3 and mandrake 8.2 here at home to constantly learn and experiment with. I have also been using shell access on my sites I run now for installing various software like ImageMagick, MySQL, etc...

    I'm not completely efficient and quick, but I can usually get things done. If I do choose to co-locate, I will then I have someone I will contract their services out if I need major help if anything goes wrong with the server. I'm lening towards a "managed" dedicated, where at least everything is installed and comes complete with cpanel and WHM so I can eliminate some of the initial headaches of getting a server going.

    Thanks for the reply!

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