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I wouldn't advise you to get into the hosting market unless you have enough experience to offer reliable services. Otherwise you will fail. It's not about money^
 
What Glumbo said is perfect.

If you want to run a successful hosting business, you need to think something different, something out-of-the-box. The hosting market is so much liquidated that, if you have a strong investor, you can run a good business, else you'll incur heavy losses.
 
i agree with BlaZe, also you have to plan your target market. if you want to sell a offshore hosting account, you have to plan your marketing statergy. for example,

1. your target user -- most offshore hosting user gonna use it as warez site/forum
2. suitable TOS -- make your tos suitable with what your are selling (better if you ask your main provider first)
3. where you should advertise it -- possibly some warez/hacking forum?
4. attractive hosting plan -- just make it unique
5. payment gateway -- make your payment gateway available for them to pay for the hosting package (usually paypal/alertpay and liberty reserve)
6. support -- just make sure you know what you are doing
 
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mastercrap said:
hi guys
i generally wanna ask a question..how do you guys think about making money with hosting bussiness today????=)
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I always wanted that, but truth is competition is too high. You need long term clients or a lot of money for advertising.
 
The money ws great before, but now it doesnt make sense, unless you plan to make it off, premium accounts like filesonic , but that takes time for users to trust you and you have to be smart to get uploaders to only use your service so you will get the premium accounts to make money and be successful.You will make a loss(a must) in the initial stages, but as users and uploaders get to like you, they will gravitate to your service and make you money.

But then server costs and bandwidth eat at your profits...lol
 
nuratouk said:
The money ws great before, but now it doesnt make sense, unless you plan to make it off, premium accounts like filesonic , but that takes time for users to trust you and you have to be smart to get uploaders to only use your service so you will get the premium accounts to make money and be successful.You will make a loss(a must) in the initial stages, but as users and uploaders get to like you, they will gravitate to your service and make you money.

But then server costs and bandwidth eat at your profits...lol
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I don't think he is looking for file hosting but instead he is talking about web hosting (hence the section).
 
The market is pretty much overcrowded as it is, if you have money, and lots of free time, go for it, but you have to get an idea on how to do things or expect to pay top dollar, Times will be slow and once you start getting your first customers and referrals your looking at about 1 year before you start to see anywhere near a decent profit but your servers/network has to be good along with your support or it won't last without a bad reputation. I would just re-sell another company and let them mange everything.
 
I started a web hosting company recently, but I had a solid plan and I am making money.... BUT NOT FROM HOSTING.

You need to realize that you will never sustain yourself or grow beyond a hobby business by pricing services "competitively" in web hosting.

You can't sell enough $2.99/mo web hosting to make it worth it.

I price my hosting at levels most people would pay for a VPS and 90% of my customers are paying between $20 and $35 a month for shared web hosting.

Do I get people from google who shop around and say "Hey! This looks like a great deal!"? Hell no.

In fact I haven't SEO'd the site and I haven't spent a dime on adwords.

I make money by putting together packages and bundling services to small business. Most of the time this includes a year of hosting, a website (template customization) , logo (if they don't have one) and some basic managed tech support. Page updates and other graphics are separate and I bill by the hour.

I generally make about $2500 per package and charge $50 for services.

to cover my expenses and pay myself $40,000 a year (my initial estimate which i will likely crush) I only have to sell 2 of these packages a month.

If i was just selling hosting at $2.99 a month the number of customers I would need = 1650.

If you are in this for a get rich quick, it's not going to happen. If you don't have the technical experience required to setup, maintain and backup servers while avoiding security threats and DDoS, don't get into this business.


Do yourself a favor and sit down and plan everything out. Expenses, Marketing Strategy and Revenues. Remember that there is no way you can compete on price.

If you still think its a good idea to just do hosting, then go for it.

I'm not trying to discourage people from getting into this business but too many people have misconceptions.
 
Nice reply, void07.
Location says "Arizona". Do you work offline? Like, do you get your customers from some sort of "mouth-to-mouth"?
I should move to the states.. I work pretty much the same, only with lower prices. :(
 
I'm the same way I don't do $2 unlimited everything and act like I'm giving you the world for nothing, I give you what you pay for and top notch service, I have some of the best deals around on dedicated servers even large companies can't compete with me.
 
Maniac_ said:
Nice reply, void07.
Location says "Arizona". Do you work offline? Like, do you get your customers from some sort of "mouth-to-mouth"?
I should move to the states.. I work pretty much the same, only with lower prices. :(
Click to expand...

I do a bit of both. Local businesses are generally my bread and butter but lately I have been getting some business from the web.

It takes some work to do locally but get a portfolio together and get some brochures made that outline why people need a website, what you do and why they should select your company.

Remember that most companies don't need a $30,000 custom website nor can they afford one but a $2500 great looking website from a high-end template does the job extremely well.

Its also important to stress the "bundling" angle if you go for this sort of thing because what really matters to business owners is time. They don't have much of it and they work hard enough already. It really makes a statement to them when someone can come in and say "I have everything you need for an internet presence and its this price" Of course its still important to do a break down and tell them exactly what they are getting and what each piece costs.

The vast majority of my business comes from referrals. Do an outstanding job on every project you do and I guarantee that client will find an excuse to mention it to EVERYONE they know.
 
I don't see a ton of people jumping on new web designs though, I mean people here and there are going to but, on average I'd expect a grand, something more better a few thousand.

Just depends really who is willing to pay, so void your selling them hosting services too? Do you have your own servers?
 
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