- 1 How to setup a Web Hosting Company
- 1.1 Select the categories of Hosting you desire to offer to your clients
- 1.2 Create your price charts and decide your profit margins
- 1.3 Client and Resource handling software mechanism
- 1.4 Select the best ISP to keep constant connectivity
- 1.5 Purchasing Bandwidth to make the websites faster
- 1.6 Power Sources
- 1.7 Consider every aspect before purchasing hardware
- 1.8 Licensed Products
- 1.9 Outsourcing Support Teams
- 1.10 Marketing
Gone are the days when having a revenue generating website or blog of your own was considered to be a great success in online business. Every other person you meet now has their own website through which they earn.
And if you have come to read this article and thinking to start your web hosting business, we suppose you are already into internet business, but now you want to do something big. You have already considered the fact that everybody has a website nowadays and it is not a big deal to have a blog / website until and unless you are earning big bucks from it, more than the average income of any general profession.
We suppose you want to enter into the field of hosting business and that is why you are reading this article which will provide you tips and things to consider while you plan and create your own website hosting and domain selling service for clients across the nation. Or maybe, if you are extremely talented, you can think of doing it across the globe just like those big companies you bought your hosting from when you created your own website.
In this article, we will guide you about the things you should keep in mind while you setup your own web hosting company.
How to setup a Web Hosting Company
Below are the things you should consider if you are planning to start web hosting business with little investment.
Select the categories of Hosting you desire to offer to your clients
The types of servers you decide may vary according to your investment in the beginning. Generally, people only offer shared hosting at the start because the other kind of hosting is preferred to be bought from old service providers by clients across the world. Once you have started earning money and created a benchmark for yourself, you can start offering dedicated hosting and Collocated Hosting.
In shared hosting, many clients are assigned different partitions of a single server which leads to a low cost of operations. On the other hand, clients who buy dedicated hosting gets the advantage of using a whole server without sharing it.
Collocated hosting is the most expensive hosting because the client gets to select desired hardware according to their choice and place it with the host company and use it as their own; they can install any kind of scripts and programs on it.
Create your price charts and decide your profit margins
Before deciding the prices for the various services you are willing to offer, research the competitors at your level (not the ones who are into the business for many years and operate globally, but the ones who are also new or just few months into the business).
See what prices they are asking their clients for various services and then set your prices which are favorable for both of your company and clients. We would advise you to keep the prices low in the start and provide the best quality to attract customers and create a name for your company.
Client and Resource handling software mechanism
A panel from which you can organize and manage the entire client data and operations and validate website orders. This panel can be a WHMCS panel or some other software panel you would like to use.
Select the best ISP to keep constant connectivity
Internet connectivity is the core requirement for any hosting service provider which no web hosting company can ignore. So selecting the best ISP to keep constant connectivity is of utmost importance to manage your clients and resources. Good Internet connectivity and higher bandwidth is the most important thing for a web hosting Service Company to ensure that its clients don’t hassle out from its services and go to its competitors.
For this reason, the requirement of the best ISP you can get at good rates is extremely necessary. Without a good internet service provider and high bandwidth, you cannot succeed in the web hosting business.
Purchasing Bandwidth to make the websites faster
The higher bandwidth allowance you buy for your servers, the websites that are installed on them by your clients will be the faster and quick. It will make your clients happy and will attract more customers. Your purchase of bandwidth will also depend on how much clients you have.
For an instance, a bandwidth allowance of 10 Mbps will allow your servers to have around 1000 VPS accounts/ servers. You can start your business by buying an average bandwidth for the starting days as there will be not many clients in the beginning and then you can increase the bandwidth according to the requirements.
To keep your hosting servers online 24 x 7, you will need to make sure that power cuts never affect your servers. Install inverters and electricity generators so that you can keep your servers up even when there are power cuts or in case of emergencies.
Consider every aspect before purchasing hardware
While purchasing hardware (server machines and peripherals) for your web hosting business, make sure that you get the best deal and research every provider in your reach. Make sure that you get the best hardware so that you can fulfill the needs of your client and also good hardware will help you to manage various accounts like Shared, VPS, and dedicated hosting.
A supplier can ought to select the merchandise line that he is entering into. For example: bloggers need cPanel with their Linux VPS accounts for which the license price is variable from one supplier to a another counting on deals with cPanel.net. Thus having a evaluation varying for all such license purchases in synchronization with the information measure calculations (shall offer you a value per client) and strategy of deciding product share (Dedicated vs VPS vs Shared Hosting) in your business can offer you with an entire summary of evaluation ranges.
Outsourcing Support Teams
Managing a few numbers of accounts in the beginning won’t occur as a problem to anyone but once your business has grown and so has the number of clients, you will need a good support team to solve the problems of your clients without making them wait. So keeping a reserved fund for getting people as your support team can be a very good strategy.
Well, the one major thing to make any business successful is proper marketing and that is the same case with an online hosting business. You can select from different marketing strategies like SEO, SMO, etc. Just do your marketing properly.
These were some of the tips which will come handy for you when you start your own web hosting company. Please feel free to share your experiences, if you have any. Happy Hosting!
This article is contributed by Savita Singh. She is a Tech Blogger from ComputerGeekBlog.com. She writes about computer, gadgets and blogging tips and tricks on her blog. You can connect with her on Facebook & Twitter.