Setting up my own hosting network.

5 replies
So I have a couple of servers with a lot of space and bandwidth going spare these days, so I was wondering how I would go about making money using it.

I was thinking about setting a hosting company, but that market seems incredibly saturated, how would I go about getting myself known in the hosting market?

I was thinking about having different purposes, for example general hosting on the TLD. Then also forum hosting on a subdomain where you can choose your message board system and it would automatically be set up for you. Do you guys think this would be a good idea?

I was also thinking that you could have free hosting as long as it was ad-supported, or you could pay and get a couple of extras and no ads.
#hosting #setup
  • Profile picture of the author Daniel44
    No-one can help me here?
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    • Profile picture of the author BeauJustin
      Web hosting is among the most saturated and difficult markets to compete
      in. I did it for four years, and busted my butt trying to make it work. I had
      six co-located servers and two dedicated servers and kept them pretty busy.

      But the problems with managing your own servers are many indeed. First,
      servers get angry, they get cantankerous. Sometimes they seem to have
      minds of their own, and when they crash, stall, break, or get
      misconfigured, you really need to know how to fix all of that - which is
      significantly more difficult (and/or expensive) from a remote location.

      Everything that hosting is, free hosting is, as well, but worse. You need a
      mountain of anti-spammer controls and measures, and even part of your
      daily regimen will be the removal of those who abuse the free side of the
      service. I wouldn't even try free hosting at all.

      There are resellers out there who do well, but the ones I've known who do
      well mostly sell space to people for whom they also do design work. Other
      than that, without a great deal of starting resources, especially for
      advertising, it is very difficult to get a fledgling hosting company off the ground.

      You cannot compete on price. It's the dumbest thing that new web hosts
      do, as though cheap somehow equates to value. You can't compete on
      service because companies like Bluehost and Hostgator, with whom a
      majority of Warriors host, provide outstanding service, from full service
      departments.

      You could come up with some stylistic reason, like "the world's shiniest
      webhost" and then make all sorts of comedic references as to why it
      matters that your potential customers use a shiny webhost. Something like
      that might draw you a certain crowd. But I wouldn't even hazard a guess
      as to how well it would do.

      Take it from me, hosting is nightmare if you're a one man operation. I did
      hire several support agents, and remote techs after a while, but it was just
      too difficult for us to manage once we topped a certain number of clients.
      There were never enough hours in the day to manage the support issues,
      and the budget just wouldn't support growing the company with clientele
      and simultaneously allow us to add enough staff to support them.

      I was eventually faced with the option of taking out a pretty huge loan to
      grow the company proper, but opted instead to sell the company to a
      bigger web host which was able to offer better service to my clients.

      I hope I don't sound like a naysayer, I'm just giving you my personal
      experience. You'll probably find a lot of successful people at the forum
      mentioned above. But be careful though. There are a lot of highly
      defensive geek-types there who frown on the inexperienced who jump in
      with dollar signs in their eyes.

      It's not a business for everyone.

      Good luck.
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  • Profile picture of the author jacktackett
    I say this with all due respect - if you really want to get into hosting check out reseller accounts at the various hosting companies. I've ran data centeres and hosting companies for several years - you don't want this head ache.

    As for infrastructure? you say you have excess bandwidth - but from what? if you're running from home then you need a business class internet connection since most personal home accounts only allow a personal server. Also these are typically DHCP addresses - subject to change without notice. Do you have a UPS and a generator outside for when power goes out. Who will monitor your servers 24/7 and alert you to problems? What type of hosting control panel will you give your end users? who will do the sys admin work on the systems? Who will monitor the rbls for being black listed?

    dude - that's a lot of work when for fees like 24.95/month you can have hostgator do all the work for unlimited reseller accounts and you just concentrate on marketing.

    I have not ran servers out of my house for my hosting company since '99 - when Communi-Net started offering outsource hosting services for resellers.

    If you really want to run a hosting company - then at least consider getting a co-lo rack at a near by data center and run it from there and let them worry about what we call in the industry power-ping-pipe.

    Good luck,
    best,
    --Jack

    ps - mytline is right - Web Hosting Reviews, Hosting Directory | WHIR and webhosting talk are key industry sites.
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  • Profile picture of the author seasoned
    Daniel,

    I can help! You DON'T have a TLD!!!!!

    And jack is right! Home, and MOST business, networks BRAG about speed, but they mean TO the machine! They INTENTIONALLY limit speed FROM the machine! Do you know why?????

    1. YOU WON'T MISS IT! I mean how many people have their systems constantly upload LARGE files to the internet?
    2. THEY USE THE BANDWITH ELSEWHERE, including for people that PAY for it!
    3. It limits your chances of using their resources to run a webhost service!

    Besides, do you know how hard it is to run a decent webhost service to the general public? Your asking questions like this here, and saying you have a TLD, kind of indicate you should WAIT!

    Steve
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