What are the chances of starting a successful hosting company today?

Started by sadko7777, Jun 19, 2022, 10:16 AM

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sadko7777Topic starter

During the 15 years or so I've been a member here, I've probably seen hundreds of "I want to start a hosting company..." threads in this forum. I'm curious, how many of these aspiring individuals actually went on to build a successful company and made it past $1,000 in revenue? If some of you are around, let's hear your story!

Consequently, I'm interested to hear from those that today earn a substantial income from their hosting business - when did you start? Has anyone started in the last 5 years?

Back in the days, if you had the technical skills and a good amount of patience, you could get quite far. Nowadays, the chance of succeeding with a new hosting startup seems pretty slim. It begs the question, is there even much demand for traditional hosting anymore? Is web hosting still a viable business opportunity? While SMBs, ecommerce owners, and hobbyists turn to Wix, Webflow, Shopify, etc., the top cloud (IaaS) providers capture most of the enterprise market, making the competition for new leads harder and harder.

I'm sure many of you would disagree with me and claim there are still plenty of opportunities, but honestly, what is your percentage of new signups today compared to 5-10 years ago?

Many of us, myself included, have been in the game for a long time and were fortunate enough to build up a solid customer base early on, which has continued to provide a great source of income throughout the years, but I'm interested in hearing your perspectives on the future. Do you plan to retire with your business, or are you considering some other exit strategy? As they say, you're either growing or you're dying.


In my experience, I found the vast majority of my revenue to come from relationships with established clients I provided web design services for. Providing hosting was an additional service and added value I could bundle into design quotes.
I would be curious to hear from people that launched a sort of "general" hosting company like BlueHost, HostGator, etc if they have been successful.

Туман, туман

The chances of being successful are pretty slim especially if the person looking to start a hosting business is expecting to make money from year 1. Hosting, especially "regular" hosting which is the most common and easiest to establish, isn't a good money maker on its own.

In my experience, starting pretty late (in the past couple years) meant having a pretty slow but steady growth. It helps that I have a dev business that naturally complements hosting. I don't envision being as big as GoDaddy etc. but at the same time my hosting business isn't gonna die because "oh no I don't have enough clients and can't pay next month's bill anymore" like most others.


Chances are pretty small, because all of the best hostings been working for years already and the audience got used to them. Obviously starting a hosting service is a good idea but it's complicated that you won't have that much clients, even free, new hosting services are not that popular now.


The server/web hosting business is a lucrative business to get into because individuals, businesses and the government are in need of server hosting services. nonetheless, to start that type of business, you will need technical skills to secure your server.
Due to the technical nature of this business and the need to understand what you will get from the business aspect, it would be wise to consult with a business advisor in the area where you intend to start the business.

That is done so that the business advisor can walk through your business -concepts and give you advice as to whether to continue the business or not. If your business concept is good, the business consultant will offer you tips and suggestions for next steps that will be useful to you in the course of running your hosing service.