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  1. #1

    The Do's and Don'ts of starting a web host?

    I'm thing of giving web hosting a try. Done pretty good with file/image hosting so Id figured I would give shared web hosting a try by starting small.

    I wanted to know what you all think are the basic do's and don'ts for starting a shared web hosting?

    Thanks

  2. #2
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    Theres alot more to it than just file/image uploading.

    Starting a Business requires:
    *Money

    *Advertising
    *Comittment
    *Understanding
    *Passion
    *Stratergy
    *Time & Patience

    *Devotion

    Starting a Business might sound easy but behind the scenes work needs to be done. You firstly need a name, entity etc. I'm not sure how all countries run with business registrations, Though you may want to figure out taxes and registering as a business.

    It's not all fun ;-)
    Last edited by Sparrow-Sean; 08-13-2009 at 10:08 AM.
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  3. #3
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    @ATH-Sean: Annoying details are what fun is all about!

    @dlewis23: There is also an annoying amount of competition (both good and bad) I'd say start with a reseller account, but I would much rather recommend getting into VPS instead. Sure there is a bit more tweaking, but if you are technically savvy its all good. That and if you ever want to migrate to dedicated you know whats going on. Reseller accounts on a gimped WHM account is not as exciting, but that's my opinion.

  4. #4
    Well, Since you do have some experience with hosting business I will just suggest you one thing , Surely you can start with the hosting business but try to provide the things that will be something special and worthy . If you found it , no matter what cost it will be for hosting a website but for sure clients will signing up with you.

    Again you will need hardwork , patience and skill with what things you can provide that will be best in the market. It should not be a commitment it should be experienced by the clients .


    Quote Originally Posted by dlewis23 View Post
    I'm thing of giving web hosting a try. Done pretty good with file/image hosting so Id figured I would give shared web hosting a try by starting small.

    I wanted to know what you all think are the basic do's and don'ts for starting a shared web hosting?

    Thanks

  5. #5
    Join Date
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    Location
    Melbourne, Australia
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    @MikeTrike - Hop back on your bike , Good pointer.

    A good business strategy with good ethics will propell you into a world of excitement, (who am i kidding), Honestly until you get an idea, understanding of how things work, maybe you should run with a reseller service, You maintain no hardware at all, no tweaks etc.

    Get the feel of it first, then you can make that next step into the unknown abyss!

    Sean.
    l Dedigeeks • Shared • Wordpress • Dedicated • Established 2006
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  6. #6
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    Quote Originally Posted by ATH-Sean View Post
    Theres alot more to it than just file/image uploading.

    Starting a Business requires:
    *Money

    *Advertising
    *Comittment
    *Understanding
    *Passion
    *Stratergy
    *Time & Patience

    *Devotion

    Starting a Business might sound easy but behind the scenes work needs to be done. You firstly need a name, entity etc. I'm not sure how all countries run with business registrations, Though you may want to figure out taxes and registering as a business.

    It's not all fun ;-)
    Sean, I could add some qualities in no particulr order

    personal qualities:

    * Wisdom
    * Tolerance
    * Ability
    * Time Management

    Business qualities:

    * Tactfulness
    * Negotiation skills
    * Counselling skills
    * Financial Management

    Surely there are more, but these are ones I live by.

    --Michael
    ______________________________________________________
    https://technismart.com
    Serving our customers since 1979

  7. #7
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    Couldn't say it any better...

    I'm on a mobile unit, So writing to threads takes some time and my ability use such tremendously good words are quite limited.

    Though you nailed it.
    l Dedigeeks • Shared • Wordpress • Dedicated • Established 2006
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  8. #8
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    Quote Originally Posted by ATH-Sean View Post
    Theres alot more to it than just file/image uploading.

    Starting a Business requires:
    *Money

    *Advertising
    *Comittment
    *Understanding
    *Passion
    *Stratergy
    *Time & Patience

    *Devotion

    Starting a Business might sound easy but behind the scenes work needs to be done. You firstly need a name, entity etc. I'm not sure how all countries run with business registrations, Though you may want to figure out taxes and registering as a business.

    It's not all fun ;-)
    I cannot emphasize the "time and patience" aspect enough, success just takes commitment, time and patience, as long as you have the quality product.

  9. #9
    one of the important dont (i think).

    Dont try to be the cheapest on the market. Believe in your own products then your customers will do to.

  10. #10
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    Aug 2001
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    4,028
    - DO NOT try and compete with the big boys

    - Sell your packages based on service and support, NOT price

    - DO NOT get into this industry if you're not 100% dedicated. It's not fair that someone is going to trust you with their online business hosting (email and files) if you're not going to give it your all.

    - Start small. A reseller account from a proven company who won't mind answering question after question as you learn.

  11. #11
    Do NOT: expect to make loads of money right of the bat. This is the major cause for most failures IMO. They dont plan for the long term or give up too soon because they arent making the thousands/m they thought it would be like.

    DO: Take massive action and follow through. You wont see any worthwhile results for atleast 3-6 months. However, with a little bit of luck you will start seeing some good profit on your 6 month - enough to make it worth all the time you spent.
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  12. #12
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    Do: Offer support and provide good customers service, this is a good foundation any company can build on. I have kept doing business with a few companies just based on their support service alone.
    Don't: Don't come off rude to customers, if a potential customer asks a question take time to answer it, the last thing you want is the customer to feel as if you are being bother. After all they are looking to spend their money on your services.

    I just wanted to add a little more.
    Do: Defend yourself, if your a WH company and a customer is upset about something and post it on WHT, lets hear your side.
    Don't: get dragged into a argument match, state your case or your side of the story.
    Don't: Take it personal.

    Those last three came after I read a thread here on WHT.
    Last edited by TheBizDev; 08-13-2009 at 01:55 PM.
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  13. #13
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    Aug 2002
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    645
    Start small, start small, start small.

    Seriously.

    Grab a small reseller account with transparency. If you go Linux, invest in a solid support ticket system (Kayako's eSupport) and a billing gateway (WHMCS). Also stick to a solid branding theme.

  14. #14
    I wouldn't do it at all.

    The internet is changing and everything is moving to hosted applications. Fewer and fewer people require web hosting in the way they used to. The cost of customer acquisition is too high and the amount people are willing to pay is too low.

    It would be better to look at some sort of hosted application, even as simple as a web site builder/domain/ hosting combination, possibly combined with a bit of design or updating input from yourself. That would have a higher margin and be more likely to be worthwhile.

    Just my 2c worth.
    Formerly: Managing Director, Hostroute.com Ltd & Marketing Director, Ultraspeed UK Ltd
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  15. #15
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    Do have a business plan

    Don't think it's a get rich quick scheme.
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  16. #16
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    Don't expect a steady cash flow immediately, unless you're the lucky guy to discover an undiscovered niche market that's ready to take off (that's highly unlikely at this point!).

    People make a steady living from hosting, some even get rich from doing it - but most don't get past the first 6 months. Keep motivated, keep looking for opportunities to improve and make sure you keep possible (and current) customers interested in what you've got to offer that's not already on offer.

    Realistically, the business morals are the same across the board.
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  17. #17
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    You need motivation to succeed, and dedicated to get there. It's not all about the money, keep that in mind. You will not make positive net for a while. How far you go in the hole depends on what you get to start out.

    If you want a dedicated server, get one, but don't buy the biggest baddest one on the block. Know your financial limits, set aside personal money for use in your business venture.

    Have two checking accounts! Don't put all your companies profit in your personal bank account.

    Invest in innovative solutions that will make your job easier. If WHCS costs $18.00 a month, and you are already over budget, bite the bullet. In the end it will make your job easier, and your customer experience easier as well.
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  18. #18
    Do: Think this through carefully and be sure this is really what you want.
    Don't: Give up.

  19. #19
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    Do: realize it is a lot of work and it's not something that you are going to "get rich quick doing"
    Don't: think you are going to get rich quick while doing little work.

    Beyond that - having a solid business plan and good business sense will definitely help.
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  20. #20
    Quote Originally Posted by GarrettReardon View Post
    If you want a dedicated server, get one, but don't buy the biggest baddest one on the block. Know your financial limits, set aside personal money for use in your business venture.
    Well I already have 2 dedicated servers that I use with my file/image hosting site, and one of those is just used for storage of the files that are uploaded. ( Was cheaper to get a second server then more hard drives in the first. ) So I would start with a solid reseller account that includes everything that I need, and then I can add my dedicated server too it through WHMCS.

  21. #21
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    Cool

    Ditto to the above about finding a niche, good business practices like going into any other business then realize there will be a TON of work if you get your own dedicated. Your average user (market niche) will determine your support requirements somewhat and security will be a BIG thing (and only getting bigger) so you will need to calculate your hardware costs & such but most VPS account (and of course reseller) are secured by the main host. You may need to think of costs of outsourced support or security if you go out on your own and your are not up to the demands of whatever your customer type and security.
    If you have to outsource support tickets the good ones are not cheap and they have a minimum so until you get enough customers, you will be paying for several hundred tickets a month that are never used. Then is you are not totally "up" on security you will need someone for that to...another chunk of change per month.

    So the start small idea is good until the customers start coming. You can easily forget the "extras" and have such a high overhead there is no way to pay the bills after a couple of months because customers will come slowly unless you find a "magic" something several thousand of us have been looking for for years. And then if you get a "starter" size server you may be paying 3X the $$ for the added support or security as the cost of the hardware. So Reseller or VPS is a good place to start but find someone "solid"...your service will only be as good as theirs. The only downside to not having your own.
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  22. #22
    A thing to remeber is that in any internet company or business you will fail many more times than you will succeed. A business requires a lot of dedication. There is no point trying any sort of get rich quick scheme because they will not get you rich quick because if they did every would be rich.
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  23. #23
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    Quote Originally Posted by GordonH View Post
    I wouldn't do it at all.

    The internet is changing and everything is moving to hosted applications. Fewer and fewer people require web hosting in the way they used to. The cost of customer acquisition is too high and the amount people are willing to pay is too low.

    It would be better to look at some sort of hosted application, even as simple as a web site builder/domain/ hosting combination, possibly combined with a bit of design or updating input from yourself. That would have a higher margin and be more likely to be worthwhile.

    Just my 2c worth.
    I would definitely agree with this. You cannot jump into any area of the hosting market these days without having to compete massively for new business.

    Unless you have a fantastic value proposition for customers, you're going to really struggle to make an impact and make all that hard work worthwhile.
    Darren Lingham - Stablepoint Hosting
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    We provide industry-leading cPanel™ web hosting in 80+ global cities.

  24. #24
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    Here is our story:

    Year One: Shared/Reseller - Making no money
    Year Two: Lease/Rental Dedicated - Making a few bucks
    Year Three: Colo Space/Rack - In Planning - Hopefully making a few more bucks

    These are yet be seen, but we can dream.

    Year Four: - Private Cage?
    Year Five: - Private Suite?
    Year Six: - Private Office?

    Now we don't have a solid plan for year four five and six, but we know we want to head in that direction.

    Getting past the first year is the hardest part.

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