Web hosting Business Question

Started by lokdown, Jun 23, 2022, 04:54 AM

Previous topic - Next topic

lokdownTopic starter

Do you guys own web hosting companies of your own?
I am new here & curious. If so what is one way you guys have grown business? Any advise to those getting into the industry & do you think other should get into the web hosting industry?


Waste of time unless you have a really niche offering.
Heck even the big players are coming after their partners by offering niche services such as fully managed hosting and software development etc.
You need quite a bit of spare money as well.
No money in just selling hosting and domains anymore oh plus you have the likes of Wix and squarespace to compete with as well.


My advise is don't make hosting your main product/USP. You can't compete on price with the big guys anyway, and hosting is such a commodity nowadays that it's really difficult to stand out. If you have some other skill or service you can provide, e.g. webdesign, SEO, social media marketing, you can try to gain a few clients that way, then offer hosting as a value-added service.
The first ones are always the hardest. Once you have a few clients the power of word of mouth starts to kick in. And remember, it's always eaiser to sell "more" of something to your existing customers, than it is to sell something to someone that has never heard of you before (i.e. work on your upsells).
Paid advertising is likely a waste of money unless you have really deep pockets or a really niche service offering so you can make your ads super targeted.


Originally, when I got started, my plan was to purchase some reseller hosting and then run ads, but I quickly realized that I couldn't compete via that method.

My "edge" was pricing, but it was difficult trying to have a race to the bottom of pricing because there was always someone cheaper (such as free).
So now, I was in a position where I couldn't really raise my prices because then I'd lose my primary advertising offer (that I was cheaper) and I couldn't lower my prices any further because I was already bleeding money on ads spend as it was.

I still have a lot of growth to do, but I'm finally cash flow positive three years later but it took a shift in my approach.

Instead of advertising, I began networking - small business meetups, non-profit organizations - and just started integrating myself with the local small business community.

Suddenly, my edge was my human element.

I was local. I could offer similar pricing to companies they already used, plus have a direct and local representative with delegated access to their hosting plans.
I tied this in with web design and local SEO services so that web hosting became a value add. Then I wowed them through the entire process with greater service and greater pricing.

A lot of them were coming from GoDaddy, so that wasn't difficult.


First of all, decide the purpose for which you need a full-fledged hosting business.
Just to be... Make a hosting, play around and then sell. Or build a business.
If you play around and sell, then remember that the main value is only "live" clients, and not equipment and self-written web panels for hosting management.

If you build a business, then study business processes, marketing, personnel management. It does not play a big role that it is hosting or automotive.
For any business, the ability to sell is vital. Otherwise, it's just a hobby and it takes a lot of time and money to maintain it. Servers are expensive and outdated quickly. Disks of recent years "fly" without having served the warranty period and often change to the same refurbished, remanufactured ones and fly out after the end of the warranty period. And they are expensive. Another challenge that a rapidly growing business will definitely face is the purchase of IPv4 addresses. Staff. Where can you find real workers who will take care of your business as if it were their own and put their soul into it, just like you?

And the registration of a company, obtaining licenses for an office with ruffles will not make hosting a full-fledged one. Only like-minded people, staff, knowledge and skills will help you make a full-fledged independent brainchild.

But in order to taste the work of a hosting service and gain useful experience and skills, the best option, in my opinion, has already been offered: Work in any hosting company, there are a lot of vacancies. In day and night shifts, under air conditioning and without sunlight in a lot of noise. When you pass this quest you will know what you have to do.

Generally, good luck.


My advice to you is, don't start and don't get involved. You will not get any profit. Only if you don't reach a big level. The competition is very serious, are you ready to compete with large companies? You will need competent marketing. We need excellent experience in this field. Customers will consider you as a product, and it will be necessary to provide good technical support and promptly respond to all complaints. In general, if you have extra money and time, there are easier ways to multiply it.