Due to the big demands of the web hosting market, it is indeed valuable for you to start your own hosting company because of the many opportunities in store for you. It will, however, take hard work and planning to make this a lucrative business.The first thing I would ask anyone who want to start a web hosting business would be; what is the goal of starting this company? Are you a web developer who wants to offer your clients hosting with your web design service? Are you looking this be your sole source of income, or something in between. Knowing the answer to this question will help you study the next important question: Is there a share of the market you believe you can acquire?
If ever you are ready in starting your own hosting company, below is a step-by-step-short guide on how to do it to be able to avoid pitfalls and improves your success.
Know the Market
Since web hosting is a competitive and wide-ranging industry, it is just essential for you to know the market. You need to offer something unique or better than your competitors for the business customers and you need to do some extensive marketing for this matter.
After you have finally identified the niche, you now need to make an effort on additional research. Learn more about the top five competitors in the hosting niche including their services and fee structures offered. It will also be ideal to make use of a spreadsheet.
Deciding the Core of the Business
Three of the different types of web hosting businesses to decide on include at-home server, reseller hosting and data center collocation.
Decide on what Services and Products to Offer
Now, you need to determine the services and the products that must be offered for the new hosting company. It will now be essential to decide on service options like:
- Shared hosting – your hosting account is one of many accounts on a server, or group of servers, that are maintained by a hosting provider.
If you’re new to hosting and have a limited budget, shared hosting is good place to start.
Here’s a few things to consider, are shared hosting right choice for you.
In general, the daily traffic to a small business website doesn’t exceed 2,000 visitors. This means that these websites typically don’t require a lot of bandwidth or resources to support them.
In addition, newer, small business websites tend to be more simple and straightforward, with fewer website files and data. This means, that they do not require a lot of server space or other resources.
By sharing a hosting server with others, gives your small business website the power and space it needs, at a much lower cost than a dedicated solution.
- Cloud hosting – Unlike shared and dedicated hosting, where everything that’s needed to make your website or application function is housed on a single server or server stack, cloud hosting uses innovative technologies to spread the files, data, resources, bandwidth, and computing operations among multiple servers that are networked to act as one system.This distributed solution eliminates any single point of failure, provides redundant data storage, and guarantees exclusive use of server resources, such as processing and memory.Cloud hosting also provides great flexibility and scalability, making it easy to upgrade or downgrade for periods of higher or lower traffic.Another big bonus of cloud hosting is that you pay only for the resources you consume.Cloud hosting is a powerful solution for large, high-traffic internet sites and applications that require the highest level of performance.Managing a cloud hosting solution is not a simple process. It takes the skills of an experienced Linux server administrator or IT professional, so it’s not a good solution to start with.
- Virtual private servers (VPS) – Hosting is a step up from shared hosting.VPS hosting involves the use of virtualisation technology to partition a single computer to simulate multiple servers.It has many of the benefits of dedicated server hosting at a much lower price and is ideal solution for small and medium businesses.Very easy to scale up gives you guaranteed RAM , storage and bandwidth and your own IP address.
- Dedicated servers – it is the Rolls Roys for web hosting.It is for websites that generate a lot of traffic and is above the VPS hosting and is the most expansive.
- Reseller hosting – Reseller hosting is perfect for people who wish to sell hosting services without having to invest in servers, networks & all of the other infrastructure required to be a hosting company.As a reseller, you are allocated a bulk amount of disk space & bandwidth which you are free to resell on to your own customers.
You can create your own custom packages & market the service in whichever way you like. The service is fully featured & your customers will have their own web hosting control panel.
There is no up front investment, just a small monthly or annual fee.
The first thing you need to do is to create your hosting plans so that you can offer your clients a range of different pricing options. You decide how much disk space, bandwidth, email addresses & databases each plan can have.
Once you have done this you simply need to enter your customer´s domain name, give them a username & password & assign the relevant plan to them & their account is instantly activated.
Each customer has their own Control Panel login so they are in full control of their web hosting.
As a novice, you only need to start with a reseller hosting system as it will benefit you of the lower cost of operation and simplicity.
Consider Planning of Giving Customer Service and Support
There is a need to consider planning and giving customer service and support. Word-of-mouth advertising will be the key essential to the start-up success of your business. This will only come after you have met the satisfaction of customers. Thus, from the very start, you must provide for exceptional service.
It is through customer service that your potential customers will increase. Even the support must be made available in the form of live chat or free call with just the click of a button. You also have to prepare your website to be easy to use and convenient for them. It only means to say that it should really be user-friendly for the customers around.
Even the checkout process must be completely streamlined and must be secure. If the customer has registered the hosting package, it will be a lot better to send some email prior to the registration details, setup and payment information including the phone number and support email.
In addition to that, you must start your own hosting company offering a thirty to ninety-day money back guarantee. Your business will therefore have its good start and good impression to a lot of clients.
With both effort and luck on your part, you could expect that your customers from the start will become loyal to the business in the coming years!