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  1. #1

    Lightbulb Are we in the wrong business?

    Hello All,

    I have been thinking a lot about this lately because I have been exploring alternative ways to make money online. Some of the methods I have found are so much freaking easier than web hosting. Most of my methods are a set and forget style site that brings you money in for years to come.

    For example, I have been working on niche sites and some of these simple 10 page websites I have are making me $1k/m pure profit and the only thing I do is link build. That is $1k/m on a site that I can build in less than an hour. I am now outsourcing link building so I wont have to do anything for the next 2 years and will just cash my checks in. How easy is that?

    So why do we work so hard on our web hosting service when there is easier money to be made elsewhere?


    Article directories make bank
    A simple example is creating your own article directory. I have been submitting my articles to a lot of directories lately and it is insane the amount of traffic some of these crappy directories get.

    Most of them are run off pre-built software and the only work you have to do is approve articles. You could even outsource that to some indian company and won't have to do jack. Sure you have to do some promotion, but promoting an article directory will be a hell of a lot easier than promoting a brand new hosting company, that's for sure.

    What are your thoughts on this?
    Last edited by dbbrock1; 08-12-2009 at 04:15 PM.
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  2. #2
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    "web 2.0" has changed a lot of things. I remember when web hosting used to be $50 for 10 MB of space.

    Web hosting has become a cheap commodity. We all have the same product. Companies like godaddy, bluehost, and others have driven the price down soo much it isn't the business it used to be.

    An example is a post I read earlier for someone wanting to sell his business. 270+ customers and only makes $400 in profit monthly? In the late 1990's 270 customers was something serious. Costs were higher then, but the margins were better.

    I personally don't focus on hosting anymore.

  3. #3
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    Quote Originally Posted by skullbox View Post
    "web 2.0" has changed a lot of things. I remember when web hosting used to be $50 for 10 MB of space.

    Web hosting has become a cheap commodity. We all have the same product. Companies like godaddy, bluehost, and others have driven the price down soo much it isn't the business it used to be.

    An example is a post I read earlier for someone wanting to sell his business. 270+ customers and only makes $400 in profit monthly? In the late 1990's 270 customers was something serious. Costs were higher then, but the margins were better.

    I personally don't focus on hosting anymore.
    That is a load of crap. It all depends on who you are targeting. If you target the people who don't expect the world for $1/month (of which there are many), you can do quite well.

    If you are one of the massive oversellers like the above, then yes, your profit per client will be lower, but you can still rake in the money.
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  4. #4
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    That is lame

    If you don't focus on hosting anymore then sell me your customers. You are lame for not taking care of your customers!

    There are so many ways to make your profit points that you should concentrate on ROI and Customer Service.

    you should own your own equipment and lease space in a data center you will make more money.
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  5. #5
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    You do web hosting not to make money, well yes, but that's a side effect. You do web hosting because you just enjoy doing it. It's like if you're a maniac gamer, be a game tester.

    If you're a maniac football player, be a professional football player.

    If you do web hosting because you're after the money, then yes you're in the wrong part of town dude
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  6. #6
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    Quote Originally Posted by dbbrock1 View Post
    $1k/m on a site that I can build in less than an hour
    I've seen a lot of grandiose claims regarding sites that make loads of money fast and easy, but I have yet to see any factual evidence of same. Can you show this?
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  7. #7
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    *

    Quote Originally Posted by bear View Post
    I've seen a lot of grandiose claims regarding sites that make loads of money fast and easy, but I have yet to see any factual evidence of same. Can you show this?
    This is soo tru because a lot of individuals these days knows how to use the internet and how to avoid certain scams that appear on their monitor screens. Hardly anyone clicks on ads anymore. Hardly anyone sees ads anymore because of script blockers and pop up blockers etc.

    For instance...if im surfing the net and i see a ad up in my face i get turned off because its not what i wanted to see. If im looking for it, then no problem. If im not, it should stay out my face!

    To make money in this economy you have to be true to yourself. Know your limits. If you can be those, then trust me, you will live comfortably

  8. #8
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    Quote Originally Posted by bear View Post
    I've seen a lot of grandiose claims regarding sites that make loads of money fast and easy, but I have yet to see any factual evidence of same. Can you show this?
    I would also like to see.

    I agree with what someone said "you should do hosting if you enjoy it"

    I love hosting, I also have a skateboarding video site with the Adsense/Affiliate products model and it's the perfect 2 sites for me!
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    I work hard because I enjoy it, I also enjoy helping people. Those people happen to be my clients, so they enjoy my help.

    just my thoughts

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    dbbrock1 - do you still own a web hosting company or did you get out of it already? just curious?

    I am like mike Trike - I work hard because I enjoy it, helping my clients succeed is a good and great satisfaction i started in the hosting business 5 years ago - people told me why - pricing are dropping - soon google will entire the hosting market and you wont last a year.

    Well approaching year 5 still going strong - space in 5 data centers
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  11. #11
    Quote Originally Posted by bear View Post
    I've seen a lot of grandiose claims regarding sites that make loads of money fast and easy, but I have yet to see any factual evidence of same. Can you show this?
    Don't know, but his business is in his sig.

    It's a ebook about starting a business in hosting targetted at those who think hosting is outsource + ads = money
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  12. #12
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    Hi!
    Sounds like an ad to me..and a waste of time. None...none of these jokers make anywhere near the money they claim. Zero.

    Anybody that even considers this as being factual really needs to spend some of that money you would be wasting on ebooks and those DVDs on therapy.

    I wouldn't even visit his site if he paid me cash.

    Bryon
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  13. #13
    why complain about wrong business ? Maybe u havent choose the right targets ? Bring some extra services to your customers, let them feel they are important, let them feel u think with them, let them bring new customers to you... ?

  14. #14
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    I don't believe the strategy "Let's find another way to make more money even quicker" as a viable strategy..

    Any business is going to take time grow, competition on all levels including price is going to exist, it isn't exclusive to web hosting.

    So to answer your question "Are we in the wrong business?"
    Any business you go into looking to make money quick without hard work will be the wrong business for you.
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  15. #15
    The question shouldn't be: Are we in the right business?
    It should be: Am I the right person for a web hosting business?

    If you're already interested and skilled in server management, then it's more than just the money.

  16. #16
    Quote Originally Posted by bryonhost1 View Post
    Hi!
    Sounds like an ad to me..and a waste of time. None...none of these jokers make anywhere near the money they claim. Zero.
    Bryon
    So what is it that I am selling?

    First off, guys this is not a game show. There is no panel of judges so please, be honest. All this crap about not being in the hosting business for the money is utter BS. This is a business guys...and it is about money. Sure, you can have fun doing that, which is all fine and dandy. But at the end of the day, all your hard work you put in is because of the money. I dare you to run your hosting company for non profit - tell me how much fun it is then.

    Or take that same customer you have spent the past years working so hard to please - I know how it can feel when you do such nice things for your customers. However, take that same customer, give him 2 weeks of bad service and I guarantee you he will be on every web hosting forum and review site on a crusade to tell everyone how bad your service is. Where is the loyalty in all that?

    Look guys I have been running a web hosting company for the past 7 years and I know what it takes to run one. I also know what to expect as far as income and the amount of work you most put in to get that income. I also know for a FACT that there is way easier and faster money to be made out there.

    It seems to me that you all are all trapped in the world of web hosting and think there is no way to make money online outside of it - which is totally fine because I was there myself not too long ago.

    But the truth is, there are tons and tons of ways - make your own products or be an affiliate. I have seen plenty affiliates bank 6 figures a month by selling products for other people. You know how many customers they have to support each month? None.

    One of my breadwinners for example, is set to make me $1.5k this month and I started it little over 30 days ago. Next month I will hopefully be on target for a $4-5k/m earner. Tell me what web hosting company can do that?

    You would be lucky to get one customer your first month, let alone $1.5k/m of pure profit. You know how much time I have spent total on this site? 10 hours AT THE MOST. And this income will come to me for the next 2 years without any extra work.

    I don't even know why I am going to provide proof, but I will do it anyway...

    Here is the screen shot.

    So I guess, bryonhost1, you have met the first.

    The only reason I created this thread was to see what everyone's idea was about making money outside of web hosting. Clearly no one does. You know what is really funny? The Internet marketing forum I belong to, no one ever considers web hosting as a way to make money online. It's interesting how everyone is split and so determined to stick with the art.

    There is potential to make yourself rich in either field...look at HostGator for example. That guy is probably making a million a month profit, if not more. On the other side of things, the most successful online product creators can bank $50million in sales in one single day. Granted, it's not all profit but I would gladly take $20million in profit on one single day.

    So whatever...keep thinking that web hosting is the only way to make money online. It just leaves more pie for me.
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  17. #17
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    Look at what the big hosting companies are doing, like 1&1 for example..
    They provide web hosting, dedicated servers, etc, but also SaaS based products, like Blogs, ecommerce, Website builders/CMS, etc, and all done without the end user needing to manage code or really understand the internet..

    They've realised that Application Hosting is more appealling to smaller businesses and general public who don't have a clue about the internet, thus bringing in massive revenues... ie, $55 a year gets you a ready made website that you can change pages/themes/products/stock/bill/ etc - thats better then paying $100's on a designer/developer as far as some potential business is concerned...

    So in answer to your question, No... Your not in the wrong business, your just not applying your business in an appealing way to the right markets.
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  18. #18
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    Quote Originally Posted by dbbrock1 View Post
    So what is it that I am selling?

    First off, guys this is not a game show. There is no panel of judges so please, be honest. All this crap about not being in the hosting business for the money is utter BS. This is a business guys...and it is about money. Sure, you can have fun doing that, which is all fine and dandy. But at the end of the day, all your hard work you put in is because of the money. I dare you to run your hosting company for non profit - tell me how much fun it is then.

    Or take that same customer you have spent the past years working so hard to please - I know how it can feel when you do such nice things for your customers. However, take that same customer, give him 2 weeks of bad service and I guarantee you he will be on every web hosting forum and review site on a crusade to tell everyone how bad your service is. Where is the loyalty in all that?

    Look guys I have been running a web hosting company for the past 7 years and I know what it takes to run one. I also know what to expect as far as income and the amount of work you most put in to get that income. I also know for a FACT that there is way easier and faster money to be made out there.

    It seems to me that you all are all trapped in the world of web hosting and think there is no way to make money online outside of it - which is totally fine because I was there myself not too long ago.

    But the truth is, there are tons and tons of ways - make your own products or be an affiliate. I have seen plenty affiliates bank 6 figures a month by selling products for other people. You know how many customers they have to support each month? None.

    One of my breadwinners for example, is set to make me $1.5k this month and I started it little over 30 days ago. Next month I will hopefully be on target for a $4-5k/m earner. Tell me what web hosting company can do that?

    You would be lucky to get one customer your first month, let alone $1.5k/m of pure profit. You know how much time I have spent total on this site? 10 hours AT THE MOST. And this income will come to me for the next 2 years without any extra work.

    I don't even know why I am going to provide proof, but I will do it anyway...

    Here is the screen shot.

    So I guess, bryonhost1, you have met the first.

    The only reason I created this thread was to see what everyone's idea was about making money outside of web hosting. Clearly no one does. You know what is really funny? The Internet marketing forum I belong to, no one ever considers web hosting as a way to make money online. It's interesting how everyone is split and so determined to stick with the art.

    There is potential to make yourself rich in either field...look at HostGator for example. That guy is probably making a million a month profit, if not more. On the other side of things, the most successful online product creators can bank $50million in sales in one single day. Granted, it's not all profit but I would gladly take $20million in profit on one single day.

    So whatever...keep thinking that web hosting is the only way to make money online. It just leaves more pie for me.
    Great post!

    I make money from a skateboarding video site and it's alot easier than web hosting for sure. The model is based around affiliate marketing with AdSense on the side.

    I agree HostGator is a fantastic example and their website looks like your average click bank sales page. Based on some figures they are making at least $10,000,000 + year month turnover. It could be much higher than that but I think it incredible!
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  19. #19
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    in interested to kno more dbbrock1

  20. #20
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    Soo let me get this right, you sell a product on an affiliate system click-bank for others to create a web hosting company that you obviously have failed at doing?

    America at its finest. Selling a failed business model on the cheap for others to try to prosper.

    Last I recalled this was a webhosting forum, not an affiliate marketing forum.

    Yes this is exactly what we need more people with trying to start hosting companies.. did you know "hosting" is the #1 business ont he web? it beats porn :-/

  21. #21
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    Quote Originally Posted by bear View Post
    I've seen a lot of grandiose claims regarding sites that make loads of money fast and easy, but I have yet to see any factual evidence of same. Can you show this?
    I know a couple people making 7 figures a month with affiliate marketing, and several doing 6. But needless to say they all do more than an hour of work. But when you're making about $40k/day net, each hour is worth a lot more than $1k.

    Unfortunately I'm not one of these people
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  22. #22
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    Hi!
    Sniff. I go cry now. Please. No..I didn't go to your website..not going. I certainly could care less about your "proof" either..can we say photoshop? Sure we can, boys and girls.

    You are correct. There are plenty of suckers that will let you take their money. Go for it. This is a "pie" you can have.

    >>>Thanks for laughs, though. Clickbank is no longer a member of the BBB.
    Shucks..I wonder why????

    http://www.bbb.org/boise/business-re...se-id-5004291/

    Ohho! More laughs!
    https://www.bbb.org/online/consumer/...10311244613870

    Thank you for playing!


    Bryon
    Last edited by bryonhost1; 08-13-2009 at 04:50 PM.
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  23. #23
    Quote Originally Posted by Spudstr View Post
    Soo let me get this right, you sell a product on an affiliate system click-bank for others to create a web hosting company that you obviously have failed at doing?

    America at its finest. Selling a failed business model on the cheap for others to try to prosper.
    No. First off, this particular website I am referring to has nothing to do with Clickbank and the product in my signature is not what I am referring to.

    And so what Clickbank has BBB complaints. That doesn't mean they suck. You know how many transactions they do a day? In the thousands. So of course they are going to get some stupid little BBB complaint that means jack squat every now and then. They have been in business for 6 years or something like that.

    And your assumption of me failing as a web host is completely wrong. I still run a successful hosting company and have been for the past 7 years. So how about get there first, then start bashing me. Thanks.

    bryonhost1,
    I stayed up for 24 hours straight making that screen shot look perfect! How did you catch me???

    Look, stay exclusive to web hosting all you want. Me personally, I will do both and make twice the amount of money. It makes sense, right? Why limit yourself when you have all the resources right in front of you(assuming you run a web hosting company).

    They are each others perfect ally, so I don't see the point of leaving one out for the other.

    Sure, you could focus all your time on your hosting business. However, once you have employees doing all that remedial stuff for you, what more do you have left to do besides for refining what you already have? That doesn't take all day to do.

    I am sorry that I have shattered your small world of web hosting. I knew this was going to be a fun thread!
    Last edited by dbbrock1; 08-13-2009 at 05:55 PM.
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  24. #24
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    Hi!
    HUh? Where did I say you were failing as a host? I didn't say that..ever.

    Bashing you? Please. If you can't take the truth..uhhh..well.

    Oh..you didn't shatter anything. At least I got a few laughs out of it.

    >>Edit: Nevermind.

    Bryon
    Last edited by bryonhost1; 08-13-2009 at 06:42 PM.
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  25. #25
    Quote Originally Posted by bryonhost1 View Post
    Hi!
    HUh? Where did I say you were failing as a host? I didn't say that..ever.

    Bashing you? Please. If you can't take the truth..uhhh..well.

    Oh..you didn't shatter anything. At least I got a few laughs out of it.

    I think you need help...seriously. You know..if you can't afford a real mental health professional..help is sometimes available at your local health department.

    Bryon
    Oops I just re-read my post and it is definitely confusing. The first half of my reply was meant for a previous commenter. The YellowFiber guy, not you. My reply for you was my lower half the the page.
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  26. #26
    Quote Originally Posted by Spudstr View Post
    Soo let me get this right, you sell a product on an affiliate system click-bank for others to create a web hosting company that you obviously have failed at doing?

    America at its finest. Selling a failed business model on the cheap for others to try to prosper.

    Last I recalled this was a webhosting forum, not an affiliate marketing forum.

    did you know "hosting" is the #1 business ont he web? it beats porn :-/
    Not true. Weight Loss and Diet eclipses web hosting. So does Travel.
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  27. #27
    I agree with you dbrock1,

    but being in your position even now..

    (Webhoster, and a guy who still believes he can earn tons with affiliate marketing,
    and wishing he can be like Mike Filsaime, Frank Kern, Amit etc etc,)

    I must say that it is a life choice..

    just like choosing a religion, choosing to smoke or not to smoke..

    some like web hosting better,

    some wants nothing to do with it..

    but the question of being in the wrong business or not, should not be judged by how much return of investment/time an industry make..

    its the pleasure of earning it...the passion of doing it, that makes it worthwhile...


    But then again, who doesnt love the green huh?
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  28. #28
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    the money what you get from other sources can be used to build brands tru local advertising

  29. #29
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    I've fumbled around with lots of stuff including affiliate marketing and it just feels hollow to me. I do hosting for the money (obviously) and do alright out of it but I like providing a real service to real people. And if I ever sell up it would go for 6 zeroes. I'd rather make 10 grand a month with all the pain of hosting than 10 grand a month being an affiliate. But I'd put up with the hollowness for 100k a month.
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  30. #30
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    I think both sides are right and wrong at the same time .

    I personally had a MFA (made for adsense) site that produced $500/mo in the best month. But there were costs: I had paid editors for content. The site is even producing now, with me doing nothing, but just around $30/mo.

    I have a friend that does 15k $ / mo and a lot of friends that are in the thousands dollar range.
    But the first guy has around 3-4 full time paid editors and just had a drop of 70% in income (probably) caused by some Google change in adsense.

    MFA or affiliates is actually a combination of know-how and luck. And if you had those in the first site, doesn't mean you'll have them with the 2nd site.


    I don't think I can scale MFA to $10k / mo, while I see I can scale this in hosting. And that makes me believe I can scale it to 100k or even 1M.

    And saying there are no/low costs in MFA, is the same BST that MLM dudes are trying to sale to you: "You do nothing and you get tons of money!".

    Yes, apparently there are easier money in MFA & affiliates, but I think this is just the first impression. First thousands are probably easier, while up from there it probably gets close to a regular business with costs and all.

    The assumptions that a hosting guy has the know-how for MFA or a MFA guy has the know-how for hosting are wrong.



    Bottom line, I think it's a matter of what you enjoy doing.
    Last edited by Adrian Andreias; 08-19-2009 at 06:10 AM.

  31. #31
    my little experience of life that there is no easy way of making money unless you are going to rob a bank( even that is not easy), no matter which business you are in it takes hard work and years of relationship if hosting is wrong business then why there are so many companies still providing the service, I am planning to start providing hosting to some of my clients but not because it is to earn to more money but to provide a little extra service, I do have run lot of websites and I still do just because I love it, I have even designed sites for free but in long term they have got me more clients and more business.
    Saying that I have choosen wrong business points to that person is not intersted in doing hard work or is not devoted to his aim. If you cant run a business then just go for 9 to 5 job else just stick to your guns

  32. #32
    I think hosting is a good business to be in @ this point, plus we are not a bulk hostermy company and we are diverse so we dont rely only that for income. I would be internested in buying Online Services Companies, Web Hosting Customers, etc... if any of you want to exit the business. We also have reseller plans.

    Contact me @

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  33. #33
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    Ask yourself what should be the results when your kids search for your name in google in the future. In the same way town travelers in the old west made loads of cash selling "Elixirs" to solve anything, its your call to become a troll webmaster.

    About being in the hosting business, I rarely host and create more than 5 sites a month, but thats me, I sell value. The 99$ website is no longer profitable for 90% of the sellers, which are small. I learned that the hard way, now I sell 1k+ sites and hosting packages for no less than $200, but again, I sell value. Not Kmart value, service value instead.

    The biggest mistake in the hosting business is thinking that you can automate everything and administer the least. Then you end up with 90 accounts sold at 20$ and a fictional success, that lead you to a loan in order to go bigger, since you base your whole business in a calculation like "90x$20=$1800 then 500x$20=$10000!!!!".

    Answering proficiently the wrong questions, leads to loss of money and time.

  34. #34
    Join Date
    Jun 2003
    Location
    London, UK
    Posts
    1,733
    Don't believe the hype, anybody making money on the internet is working hard for it.

    Very few people are lucky enough to find a golden goose, or if you have the skills to make a golden goose that lays golden eggs, you would generally have to put the time in beforehand to gain knowledge and experience. Affiliate marketing is *not* easy, just as hosting is not easy.
    Darren Lingham - UK Webhosting Ltd. - (0800) 024 2931
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  35. #35
    Join Date
    Jun 2008
    Posts
    405
    Can you give me some good outsourcing companies in india that accept payments via paypal?

  36. #36
    Join Date
    Dec 2008
    Location
    Florida
    Posts
    1,052
    *Slightly off-topic*

    Hosting beats Porn, wow whoever thinks that, I'm sorry but your <<wrong>>.

    Hosting is a multi billion dollar industry, Porn is a multi trillion dollar industry to put all things into perspective for you...

    *Back on-topic*

    dbrock1, you claim to own software that will make you the best host in the world, yet your trying to get out of this industry? You had a post on DigitalPoint about selling your Host Launcher software, yet got banned days after you started selling it, whether it has to do with your software or not is not the point.

    You also claimed to own a hosting company that made $450,000 a year, I think that was the number, and your trying to get out of this industry. I'm sorry, it just doesn't make sense...
    Not sure what to put here :-P

  37. #37
    Join Date
    Aug 2009
    Location
    Orlando, FL
    Posts
    1,063
    Quote Originally Posted by javierkatana View Post
    Ask yourself what should be the results when your kids search for your name in google in the future. In the same way town travelers in the old west made loads of cash selling "Elixirs" to solve anything, its your call to become a troll webmaster.

    About being in the hosting business, I rarely host and create more than 5 sites a month, but thats me, I sell value. The 99$ website is no longer profitable for 90% of the sellers, which are small. I learned that the hard way, now I sell 1k+ sites and hosting packages for no less than $200, but again, I sell value. Not Kmart value, service value instead.

    The biggest mistake in the hosting business is thinking that you can automate everything and administer the least. Then you end up with 90 accounts sold at 20$ and a fictional success, that lead you to a loan in order to go bigger, since you base your whole business in a calculation like "90x$20=$1800 then 500x$20=$10000!!!!".

    Answering proficiently the wrong questions, leads to loss of money and time.
    He makes a good argument here.

  38. #38
    Join Date
    Jan 2005
    Location
    Minneapolis, MN
    Posts
    967
    Quote Originally Posted by mooseweb View Post
    Porn is a multi trillion dollar industry
    No, it's not even remotely close to that. I'd be amazed if the military industrial industry did $1 trillion/year. From a 2007 MSNBC article

    These numbers—specifically that the sales and rental of pornographic videos and DVDs are a $3.6 billion industry—have been repeated so often in industry and mainstream news outlets that they have acquired the patina of fact. Throw in cable and satellite television, the Internet, magazines, strip clubs and novelties, and the oft-bandied estimate balloons to nearly $13 billion.
    Can't find any numbers on the hosting industry, but I would certainly bet it's over $13 billion/year.
    Doyle Lewis
    BuyHTTP Internet Services - In business since 2003
    Business Hosting | nginx, CloudLinux, Varnish cache, and CDP with every business account
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  39. #39
    Join Date
    Dec 2008
    Location
    Florida
    Posts
    1,052
    Quote Originally Posted by keliix06 View Post
    No, it's not even remotely close to that. I'd be amazed if the military industrial industry did $1 trillion/year. From a 2007 MSNBC article



    Can't find any numbers on the hosting industry, but I would certainly bet it's over $13 billion/year.
    I wasn't giving specific numbers, but I was giving mere examples.
    Not sure what to put here :-P

  40. #40
    Join Date
    Jul 2000
    Location
    Colorado Springs, CO
    Posts
    2,280
    Quote Originally Posted by keliix06 View Post

    Can't find any numbers on the hosting industry, but I would certainly bet it's over $13 billion/year.
    I agree, it has to be at least 5-6x higher than that. Keep in mind the true use of the word hosting includes a heck of a lot more than a $5 hosting account. Imagine all the filled datacenters out there, and rising!
    Greg Landis | Founder Jaguarpc - Keeping websites happy since 1998
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