Starting a Hosting Company

You have a buddy that knows his way around the hosting and IT world. You have a few tricks of your own too. But, do these two things combine well enough for you to start your own web hosting company? It may all sound like easy money at first, but you have some pretty tough competition. Amazon, GoDaddy, and Google are all in the hosting game. So are thousands upon thousands of smaller companies all looking to do the same thing.  starting a hosting company

How can you succeed? What will set your company apart? Here are seven essential steps to starting your own hosting company that you must (must!) read through before you rent out office space or starting looking for contracts.

1. Set up your hosting plans. Your clients will want options. Lots and lots of awesome options. If you don't have some great plans, you won't get any clients. Go with three to five plans to begin with, and move down or up from there. If you have too many plans, people will get confused. If you have too few plans, well, people will move on.

2. Create a solid website. Would you choose a cheap hosting provider that has a really bad website? Probably not. So, why should anyone seeking a new host sign up for one of your packages if your site looks like it was designed by a toddler?

3. Make sure your site is secure. No security certificate? No way to prove that your site isn't a total rip-off? Better get that part of your business plan in order, pronto.

4. Find a reliable reseller hosting provider. If you don't have one, you won't succeed. It's really that simple. You'll want a reseller hosting company that has experience, customer service, and a rock hard reputation.

5. Understand the costs. Every business has a startup cost. What are the costs associated with starting a hosting company? Around $2,000 – to start. However, there are lots of ongoing (monthly) costs to consider too. You also have to pay employees. Going to ask people to work for free? Good luck!

6. Know your limits. It's beyond idiotic to think that your company can handle “the whole nine yards.” You can't combine every possible service on the planet into one messy hosting company offering. Find a few things that you're good at, and stick to those few things.

7. Be realistic. It takes months to build any kind of company. You aren't going to make money overnight. Heck, you might not even turn a profit in a year. Hosting is one of the most saturated markets out there. That means that you'll be lucky to see any kind of a profit anytime soon.

Starting a Hosting Company: If this is the business that you really want to be in. I have two suggestions for you.

  1. Read this blog every single day. We offer unbiased advice, reviews, and a way for you to get in contact with an expert at any time.
  2. Realize that you will have to work a lot of hours. Hosting companies don't just develop over night. Spend the time, work it all out, and follow the tips listed above.

Otherwise, your site will go the way of so many hosting companies before it – to the Internet graveyard.

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