Starting a Web Hosting Company

It seems many people today want to start a web hosting company. Just by visiting our hosting provider directory or googling “web hosting”, you can see that there are many people trying to break into this market. The concept of starting a web hosting company seems very simple – start with a generic template, get a reseller account, configure some things, and start making money. But things can become much more complicated than that very quickly. There are definitely some things to keep in mind before starting a new web hosting company.

Website and Software

The first thing that needs to be done is to get the website going. This includes getting a template, creating pages that describe the company, its plans, and its services. When that is done, a program such as WHM Autopilot needs to be configured. This is so that when someone orders the web hosting, the order will automatically be received. Not only do these things need to be done but they need to be aesthetically pleasing as well.

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Client Base & Marketing

Then comes the more difficult part of starting a web hosting company – the selling. As mentioned earlier, this is a very competitive market. The company needs to find people who need the service and will check out the website. On top of that, they need to find the price reasonable. A marketing plan must be developed before taking this step as there are usually cheaper, more reputable companies trying to get those same customers.

24/7 Technical Support

Once the company has their website and has customers, customer support becomes a big issue. The first thing to keep in mind is that customers are going to want technical support available twenty-four hours a day. If the company can’t provide this, they’re more likely to look somewhere else. Also customers will usually be paying around ten dollars a month for the hosting service. This is not very much. Because of this, when customers need to be consulted or they have a problem that needs fixing, the rate of pay for the company can drop very quickly. Larger hosts usually hire technicians to deal with these sorts of issues but that may not be a possibility until the hosting company becomes a little more established.

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Variety of Options

When running larger websites, the hosting company will usually need to offer dedicated hosting services. This is due to the fact that shared hosting only provides for a certain amount of storage space and bandwidth and this is not often enough for the larger sites. The speeds are also much faster with dedicated services than they are with shared. However, there are challenges that come with dedicated servers. They require time, maintenance, and the cost is much more than that of a shared server. Simple dedicated server will cost around two hundred dollars while high-performance servers will go for 5-6 hundreds a month.

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For companies that aren’t going to offer plans that have major requirements, a shared server will do just fine. If a company does want to offer those plans, the advantages and disadvantages of owning a dedicated server must be looked at in great detail to know if it is the right decision.
Starting a web hosting company is definitely possible. However, before one takes the plunge, it’s important to look at all aspects of it. It’s also important to make sure that there is plenty of time available to run the business and to deal with customers.