Is web hosting good niche to get into?

21 replies
Hi all,
I have been playing with starting a web hosting business on and off for some time.

Now I am at a point where it is viable to do so.
On one hand I do know that web hosting is over flooded and too competitive, on the other hand locally there are only 2 competitors, and they can not match the price (their servers are local, and it costs huge) (current price 50MB to 140MB space 1 domain, very few features, $29FJD, about 14USD).

At this point internet access here is growing faster than it ever was, yet very few businesses have websites, and almost no one has personal sites.

There is the same story with development/design of sites.

And oh yeah few people have ability to purchase hosting from overseas.

So what do you say? Go slow? Jump in with both feet? Forget it?
#good #hosting #local #niche #web
  • Profile picture of the author amuro
    Certainly!

    You can create a review site on 2 or 3 web hosting accounts with one for My Top Recommendation and the other 2 for Also Recommended.

    You can create graphics with a rectangle with 4-5 stars with the color of your choice, print-screened and crop / resize in Paint Graphic Editor before saving as JPG image.

    You can also put in an opt-in box on the right side for list building and write 5-7 articles providing information on what web hosting is, how does web hosting work, advantages of getting web hosting, how to select the best web hosting account, how to sign up for web hosting account etc before linking them to those 3 products.
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  • Profile picture of the author tamalanwar
    Web hosting business can be too hard now days, what you can do as @amuro suggested above, you make a review site and drive people to your favorite web hosts. Now days every web hosting companies pay up to $125 per referral so there is big money to make from being a web hosting affiliate
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    • Profile picture of the author kaleshwarchand
      Awesome ideas both of you.
      However, if I concentrate on local as I mean to, then affiliate sales is impossible, only selling direct is possible.
      Credit cards are next to impossible to get here, paypal doesn't work well (if at all, without jumping through hoops), so those here need to pay locally.
      Which may be good thing, as very very few people have ability to buy from overseas providers.
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    • Profile picture of the author traderfx
      I would ask yourself what is it you really want to do? The truth is there is competition in every niche you choose but this does not mean you cannot make it work. However, I recommend you pick a topic on something you really want to do not what other people tell you is a good idea.

      -Trader
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      • Profile picture of the author jeffjohnson123
        I say go for it.As if you can provide people with a better alternative than i might say you go for it.Without going into the battle field you cannot predict that whether you will win or lose.
        If you want to be successful than provide the user a better option than your competitors. Try to advertise you business as much as you can.
        SEO is a good option

        Gudluck
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  • Profile picture of the author Bowdown
    "starting a web hosting business"? Depends on how technically inclined and passionate you are about it. Otherwise I'd say no.
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    • Profile picture of the author kaleshwarchand
      Originally Posted by Bowdown View Post

      "starting a web hosting business"? Depends on how technically inclined and passionate you are about it. Otherwise I'd say no.
      I am a web developer, have developed, managed everything from simple 2 page sites, to huge e commerce sites utilizing multiple servers. Currently with my largest development ever, so I would say I have the experience.

      As for passionate, its more about providing a service otherwise not available.
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      • Profile picture of the author JohnMcCabe
        Originally Posted by kaleshwarchand View Post

        As for passionate, its more about providing a service otherwise not available.
        This is a key to carving out a piece of what is otherwise a hypercompetitive market.

        Since you also have extensive web development experience, you may want to consider also offering local businesses a bundled "done for you" service which includes site development and maintenance as well as hosting.
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  • Profile picture of the author guitarizma
    Banned
    Originally Posted by kaleshwarchand View Post

    Hi all,
    I have been playing with starting a web hosting business on and off for some time.

    Now I am at a point where it is viable to do so.
    On one hand I do know that web hosting is over flooded and too competitive, on the other hand locally there are only 2 competitors, and they can not match the price (their servers are local, and it costs huge) (current price 50MB to 140MB space 1 domain, very few features, $29FJD, about 14USD).

    At this point internet access here is growing faster than it ever was, yet very few businesses have websites, and almost no one has personal sites.

    There is the same story with development/design of sites.

    And oh yeah few people have ability to purchase hosting from overseas.

    So what do you say? Go slow? Jump in with both feet? Forget it?
    As long as you have a solid marketing plan in place it's as lucrative as any other niche. Of course buyers have a lot of choices now and even the big guys are have some nice offers, so again it all boils down to your marketing plan.
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  • Profile picture of the author Brent Stangel
    At this point internet access here is growing faster than it ever was, yet very few businesses have websites, and almost no one has personal sites.
    It sounds like you are in a good position. This is the kind of scenario most marketers dream of.
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  • Profile picture of the author Kingfish85
    So, what experience do you have from a technical aspect?
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    • Profile picture of the author ItsMikeyC
      Any niche is good if you've got the strategy to get you where you need to go. The referral fees from most hosting companies are pretty high so you don't need to convert that many to make a decent living. Plus you can cross sell - if someone wants hosting, they might want an auto responder too, or wordpress plugins, etc...
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  • Profile picture of the author IMDealBox
    Looks like being a hosting reseller will work fine for you. Leter on you can switch to dedicated servers, get some tech people and become a HOSTING Company yourself!

    Same thing in my country. Not as much Web hosting but Cloud Storage. We got no players in this field at all.
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  • Profile picture of the author JohnnyJoseph
    In my opinion, if you really want to offer hosting you've got some serious homework to do. I've got a reseller account and did look at offering hosting myself but thought my time would be better spent on making money in other niches. I've just signed up as an affiliate and offer to do website installations when anyone orders through my link.
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  • Profile picture of the author Bowdown
    Looks like being a hosting reseller will work fine for you. Leter on you can switch to dedicated servers, get some tech people and become a HOSTING Company yourself!
    Yes, a reseller option is likely going to be an easier option for starting, as a dedicated server requires more work and management to keep it stable and knowledge of linux/ server admin. Are you comfortable with linux and the command line? If not you can always spend some time to learn it, its not that bad.

    If so, and you really want to pursue this niche, you may want to consider niching out more into something like a VPS company or hosting for e-commerce sites, or something along those lines that will be easier to market and gain a hold of the market.

    or you may just want to do a reseller account and target local businesses first.

    It would be a futile attempt to use SEO or other marketing techniques to try to compete against companies like hostgator, dream host, etc, without the resources to fuel a big undertaking. It's much better to niche out within that niche.
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  • Profile picture of the author zcrafts
    look for one spot solution incase you are good in development as well.. for hosting reseller hosting should be a good way for you to start with later as client base increases upgrade to VPS or dedicated Server.
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  • Profile picture of the author TelZilla
    Webhosting can be a great business. I did it for a number of years. Just make sure you have your eyes wide open, a plan in hand, and be prepared to work.
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  • Profile picture of the author a2hosting
    Speaking from experience it's very competitive and you have to certainly hone in on the right niche. Can I ask where specifically you will be located, as that seems to be a large part of your competitive advantage? Remember the big hosts have servers located worldwide and offer their customers choice of data center locations. Do those two local competitors have reseller programs? Maybe you want to dabble with that before you go full fledge into the market?
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    • Profile picture of the author kaleshwarchand
      Originally Posted by a2hosting View Post

      Speaking from experience it's very competitive and you have to certainly hone in on the right niche. Can I ask where specifically you will be located, as that seems to be a large part of your competitive advantage? Remember the big hosts have servers located worldwide and offer their customers choice of data center locations. Do those two local competitors have reseller programs? Maybe you want to dabble with that before you go full fledge into the market?
      I am located in Fiji Islands, the two local competitors have servers here (in Fiji), no they do not have a reseller option. I always have a reseller plan running to develop client projects. If I get some customers from international market, well and good, but not going to actively promote it (much).
      The main cost would be adverts.
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  • Profile picture of the author AndromedaDev
    Something I have been doing and have been having decent success with is converting my current web design clients into hosting clients,since you mentioned that you are a web designer have you thought about this yet.
    The reason I say this is you said websites are growing in your area so it sounds like web design is the way to go, offer them a free month of hosting then a cheap monthly rate, as it grows ppl will spread the word about your affordable hosting.
    I know this is a little different then what you may want, but grow yourself this way as a host then spread out with local advertising once you have a nice base going.
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    • Profile picture of the author mostwantedhost
      Hosting business has still a lot to offer as this market is not yet saturated. You dont need to worry about funds as a person can start with 10$ per month.VPS or reseller plans.
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