Starting a web hosting business
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Reasons to start a hosting business
There can be several reasons to become your own host. Before you begin this venture, you should come up with your own set of goals and reasons. This will help keep you on the correct path and keep you motivated. It's advisable to write these down and keep them on your desk.
Here is a small list. Hopefully it can help get you started.
- I am a web designer and wish to provide an all-inclusive solution to my customers.
- I would like to host several of my own sites in isolation.
- I need to have several sites with unique IP addresses.
- I would like to offer a service for extra income.
Please keep in mind that the list above is not complete. You should custom-tailor it to suit your desired end result.
Research and plan
Running a web hosting business isn't as easy as it may look. It's wise to spend a lot of time researching the industry before getting into it. You'll also need a lot of time to dedicate to the business after you're in it.
Choose a name
The next step is to choose a name which you want to do business under. For ease of access, it's advisable to keep the name short.
You should make sure this name is unique. Do a Google search and make sure that the domain name is available. If it is, it's advised to purchase the domain name at this time.
Finally, depending on the laws where you reside, you should register your business name. There are several options, including an LLC, DBA or Chapter C. Each has their own benefits. It is best to check with an accountant for the best option for you.
Find a vendor
At this point, you should start looking for a vendor. This can be one of the following (in order of expense): reseller, master reseller, VPS, semi-dedicated, or even a fully dedicated server. You should expect to pay between $10.00 and $300.00 per month for one of the options above. It's strongly advised to shop around.
Below are a few things to keep in mind when choosing a vendor.
- Price - Look for a host that has a realistic price plan to disk space ratio. Remember that you get what you pay for. If you find a reseller account that charges you $2.99 per month for 100 GB of space --- RUN.
- Beware of scams - There are TONS of scams out there that will charge you a one-time fee for a year or even lifetime of hosting --- STAY AWAY.
- Test the support - Don't be afraid to open a support ticket with any potential vendor. You should time the response and the quality of the response. A decent ticket response should be within an hour. Try also submitting a ticket at an odd time of the day or night to test the after-hours support.
- Money-back policy - Make sure that the vendor has a money-back policy in case things don't work out (except VPS and dedicated server vendors). You should expect a 7-30 day policy.
- Variety of products and services - It is a great idea to see if the vendor offers a selection of products even if you do not intend to sell them at this time.
- Beware of unlimited - Unlimited isn't necessarily bad. The problem is that it is often not done right. Because of this, most "unlimited" hosts' servers are overloaded with customers.
- Billing software - Ask your vendor if they offer any billing software (for free or paid). This will greatly help you manage your site and automate customer setups.
- Reputation - RESEARCH, RESEARCH and RESEARCH the potential host. Search any of the hosting review sites to make sure that the host does not have a poor rating. Ask for reviews on sites like WebHostingTalk.com and WebMasterPeers.com. You should also Google for reviews.
- Control panels - Go with what you know. If you currently do not use a control panel, choose cPanel/WHM. Other choices include Plesk, Helm or DirectAdmin.
Plan your prices and plans
Now that you have your web space, sit down and think about how you intend to price your hosting. It is best to visit several of your competitors to align your prices with them. You should estimate that most of your customers will use between 100 MB and 500 MB of disk space and 1-5 GB of monthly bandwidth. You should always price your plans at a point that you will generate a profit.
You should also hire a lawyer to design a Terms of Service and AUP for your customers. This is a legally binding document to give you certain rights and lay out the rules.
Design your homepage
Create an appealing and inviting site for your potential customers to see. If you have a poorly designed site, it can be a potential turnoff for customers. Your page should be easy to navigate.
Design a logo. There are several free applications and paid services that can help you with a logo. This should be displayed on all of your pages and e-mails.
Brand your page. Even if you are using a free template, you should always re-brand the page.
Set up your billing software to automate your orders.
Advertise your site
At this point, you are ready to start selling. However, before you will get any sales, you will need to get some exposure. If you are lacking money, the best option is to get active in several online web hosting and web design forums like DigitalPoint, WebHostingTalk.com and WebMasterPeers.com. Remember to place a link in your signature to direct users to your new site. Be patient; it can often take several weeks to get your first customers.
Focus on service
Do everything in your power to keep your customers happy. You should make customer service a top priority.
Re-evaluate
You should sit down at least once a month to analyze all of your assets. You should check the available space on your server and monthly bandwidth use. If you are using up 40% - 60% of your open space, you should think about buying another server or upgrading your reseller plan.
Remember to plan for growth.
Web Hosting Wiki article text shared under a Creative Commons License.
