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09-26-2009, 07:30 PM #1WHT Addict
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- Oct 2006
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- 146
Location of new hosting business?
Hello, I'm currently making a business plan to open up a new web hosting company. However I'm a bit stuck on which location to start hosting at.
The 2 locations I am currently thinking of at the moment are either the US or the UK.
Each have their advantages and disadvantages. One main one being that the US is a lot bigger and more people look for hosting the in US which would help me get clients. However UK Hosting(I think) would generate a better income because of hosting prices and I also live in the UK which would help with support to UK clients.
What location do you think I should start at?
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09-26-2009, 08:13 PM #2Web Hosting Guru
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- Aug 2002
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- Canada
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Why not support both? Start small with a server or vps in the US and UK. focus your marketing plan in the area you feel would do better in the short term and go from there.
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09-26-2009, 11:12 PM #3Web Hosting Master
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- Dec 2007
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- 612
UK seems less over saturated then the US at the moment, but their aren't as many people looking for UK VPS as there are for US VPS
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09-27-2009, 04:13 AM #4Web Hosting Master
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- Aug 2009
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- UK
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- 1,140
█ Hydro Host – Affordable UK Web Hosting - cPanel
█ Shared Hosting – Reseller Hosting – Domain Name Registration - Affiliate Program
█ www.hydro-host.net
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09-27-2009, 10:26 AM #5Newbie
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- Mar 2009
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- 10
Hello,
From your post, it seems like UK will be a better choice for you. You will have many benefits of hosting in UK than in US, like -
- You can easily attract local customers. Sites hosted in UK will be faster for UK visitors.
- Giving support to local clients will be much easier and faster, and there won't be much time zone differences.
- You can also reach out local businesses and offer them your services.
Also, as posted above, UK hosting market is definitely less saturated than US, and you have a better chance there.
Hope this helps
Regards
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09-27-2009, 10:33 AM #6Disabled
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- May 2008
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- Canada
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09-27-2009, 11:41 AM #7WHT Addict
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- Oct 2006
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- 146
Thanks for the response guys, I have decided to go for the UK option
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09-27-2009, 11:43 AM #8Web Hosting Master
- Join Date
- Dec 2005
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- 3,110
Targeting a market close to you is very important, at least to start with.
Local advertisments & word of mouth are the best form of advertising. If you offer services to the UK and you are in the UK, you can also easily have physical access to your equipment should you choose to colocate it.
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09-27-2009, 12:27 PM #9WHT Addict
- Join Date
- Oct 2006
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- 146
I'm hoping to get a few clients by contacting local web developers to persuade their clients to host with me. Is that a good idea?
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09-27-2009, 05:41 PM #10Web Hosting Master
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- Aug 2003
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- Gods Own Country
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- 892
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09-27-2009, 10:14 PM #11Web Hosting Master
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- Apr 2006
- Location
- United Kingdom
- Posts
- 618
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09-28-2009, 05:58 AM #12WHT Addict
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- Oct 2006
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- 146
How would the developer host his clients? There is 3 ways I can think of at the moment.
1) The developer purchases a Reseller package and manages the payments himself and just pays the host.
2) The developer purchases a shared package for each client he gets.
3) The developer points the client to a web host and lets the client do everything.
Which would generally be the best option for them?
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09-28-2009, 06:17 AM #13Junior Guru Wannabe
- Join Date
- Aug 2009
- Posts
- 31
Depends on the developer really.
Try offer them all the options. That gives you the greatest chance on getting them on board
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09-28-2009, 06:19 AM #14WHT Addict
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- Oct 2006
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- 146
Thanks
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09-28-2009, 06:29 AM #15Disabled
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- Sep 2009
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- 29
initially start from UK for better management and support. expand as you feel expansion in your business.
for packages, try to involve multiple features and prices, so user can easily choose whatever he likes
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09-28-2009, 08:53 AM #16Actively learning French
- Join Date
- Apr 2009
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- OnTheWeb
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- 2,397
I must agree. Start with your local market first...then seek to venture across waters. It will be more beneficial to you and your company that way because you will be in a better position to provide support and monitor your business. Also, it will cost you less in terms of headache of different tax regimes and employee issues and maintenance costs to the servers
If you're the smartest person in the room then you're in the wrong room
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