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Web hosting startup

by Jaz
12 replies
Hey all. I've read a lot of articles on here for about two weeks and I got inspired today. I found a couple old servers (but nice) that I'm going to use as web servers. I'm going to start a hosting company. I have a few things I need to iron out, but I was wondering if anyone has any pit falls or things they look for in a hosting company.


Thanks for the read and the time.
#hosting #startup #web
  • Profile picture of the author TristanPerry
    Just remember that it's not a get rich quick scheme. It'll require a lot of time and effort and you'll probably be making a loss in your first few months. Also be sure to co-locate the servers; having them in a basement (etc) is always a recipe for disaster

    Anywhoo, if you enjoy hosting then go for it. I find it really enjoyable and love picking out servers and all, hence why I'm in the hosting game. It can be a great industry to get into, and it's growing and changing (in a good way) all the time.

    Also, check out WebHostingTalk.com - that's the best board for you to learn They have a "How to run a web host business" board too.
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  • Profile picture of the author dealers
    Shortly after the dotbomb hit, a lot of used hosting-related hardware became available in the after-market. It was easy to find recent technology at 10 cents on the dollar. My company helped a good number of ISPs start up at low cost of entry.

    This subscription-based business had legs because there was good demand and they didn't burn through their cash. Virtually of our customers who started up then are still in business or have been acquired, ten years later.

    We are finding a similar market today compared to around dotbomb time. Lots of good technology available cheap.

    Gird your cash, covet and serve your customers and I predict you will be well rewarded.

    And, oh WebHostingTalk.com is a great resource.
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  • Profile picture of the author Always-A-Warrior
    I hope you understand it takes big money to run your own hosting company as you need a solid data center and all that comes with it then the advertising cost and reputation is key.
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    • Profile picture of the author Daniel Brock
      Originally Posted by Always-A-Warrior View Post

      I hope you understand it takes big money to run your own hosting company as you need a solid data center and all that comes with it then the advertising cost and reputation is key.
      That is completely wrong. You can start your own web hosting company for under $20.00/m with a reseller plan.

      I wrote an extensive ebook on the topic. Check out my signature link for a free course on how to start your own web hosting company.

      Forget about hosting them from your own home. Unless you have a T1(even that is still not enough), you dont have enough connection power to run a service from your own home. Also, it is a lot more than throwing up a couple servers and installing Apache,PHP, and email server and calling it a day. You need to have a web hosting control panel installed like cPanel or Plesk. An external license for cPanel is something like $75/m. You might as well get a dedicated server for that price.
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  • Profile picture of the author jswift
    The key question is: How are you going to get your customers?

    The last I checked, web hosting was a seriously competitive market. Just check out the prices on eBay. I'm certain most will be making a lost for years.

    Also, with cloud computing on the verge of maturity, the big boys will be joining the game soon. Once they start offering free accounts, traditional web hosting companies will be badly hit.
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  • Profile picture of the author HomeComputerGames
    the thought of the tech support terrorizes me
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  • Profile picture of the author CliveG
    Web hosting is now a commodity business. Although in theory you can offer the "personal" touch, few people are prepared to pay for it. You need 24/7 technical support - if a server goes down at 3am it must be back up by 3:10am or customers will complain.


    If you really want to do it outsource everything apart from marketing. Just learning to run a webserver will take you a long time.
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    • Profile picture of the author Jaz
      Wow, I see what you are saying about hooking it up. It does look like too much for right now. I would like to get to that point, but I can't quit my day job just yet for the support.

      I'm a silverlight/asp .net programmer, so I was looking into hosting sites. They are rather expensive for my use. I can still host my own information easily. The only thing I would really need is a hardware firewall. I was just hoping to recoup the 14 extra a month by renting space. Now that I know more about what is expected, I'll have to hold off for other people and just have mine.


      Thanks all.
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  • Profile picture of the author patfl
    Web hosting is not technically challenging anymore, hardware and software do it all almost. Now it's all money, how many millions dollars you can borrow to sustain new comers with very high marketing costs.

    It's a tough game where big players are getting bigger and where little shops disappear.

    IMO, the only way nowadays is to find a niche in hosting, like hosting for certain software or services.

    My 2 cents,

    Patrice
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    • Profile picture of the author Wilde
      IMO, the only way nowadays is to find a niche in hosting, like hosting for certain software or services.
      Couldn't agree more. There are many new startups who are doing very well within a niche. It's pointless trying to compete with those who sell unlimited everything and those on ebay as there is no such thing or the big boys.

      As with most marketing in money niches find smaller sub niches and carve out a slice for yourself.

      Read up on Webhostingtalk everything about running a hosting company is there, then decide if it's for you or not.
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  • Profile picture of the author BurgerBoy
    Get a reseller server at HostGator and sell hosting on it. They handle everything for you including the billing.

    The reseller server is $24.95 per month and they have to keep it secure and up to date - not you.
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  • Profile picture of the author geolt7
    Originally Posted by Jaz View Post

    Hey all. I've read a lot of articles on here for about two weeks and I got inspired today. I found a couple old servers (but nice) that I'm going to use as web servers. I'm going to start a hosting company. I have a few things I need to iron out, but I was wondering if anyone has any pit falls or things they look for in a hosting company.


    Thanks for the read and the time.
    Reliability and timely support is what I look for in a webhost. I would want to be able to speak or rather chat with some support guy online. I guess web host like hostgator has somehow shaped my expectations. If you can do what hostgator do and with proper marketing, you should be fine. Again, I must say that I do not have any experience in web hosting business. I am coming from the angle of a user.
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