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DiggDigital

DiggDigital

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2014
24
295
Hello,


I know starting a hosting business is not a easy task. But what are the things to be considered to start a hosting business. I have few questions related to hosting. It would help if you could give me a good response to those.


1. Is hosting business profitable?
2. What is more profitable VPS or Dedicated servers?
3. I know any host can have there own profit margin on sales. But i would like to know whats the standards of profit startup hosting business have to run their business by which they dont run loss.
4. How to get the popularity?
5. How to make good sales since hosting is not done by word or mouth.
6. What are the major thing to be consider before starting the business?


I know there are lost of questions, but looking forward for healthy answers.


Have a nice day!


Thank you
 
13 comments
Okay, There are lot of things you must understand. Let me just answer your questions one by one

DiggDigital said:
1. Is hosting business profitable?
Click to expand...
Yes it is, But Just like any other business. You will be expected to put in a lot of money and time before you get to see any profit.
DiggDigital said:
2. What is more profitable VPS or Dedicated servers?
Click to expand...
Depends on your Business Model. There's no such thing called as which is more profitable. If you have a collocation or a DC, Then Dedicated would be more profitable & easy to sell. Where as, you are a reseller or have a dedicated on Lease then Selling VPS would be more profitable but then it comes with its own overhead of providing support to many individuals and also handling Abuse. You might also suffer loss, If you have a lot of servers laying idle in your inventory.
DiggDigital said:
3. I know any host can have there own profit margin on sales. But i would like to know whats the standards of profit startup hosting business have to run their business by which they dont run loss.
Click to expand...
There's no such governing body which can decide on this, Its upto the Host. There are many who run in loss initially to get more client so it varies from one Host to another. Try to cover the support cost plus the hardware cost initially. Once you are a brand, you can raise your Profit levels.
DiggDigital said:
4. How to get the popularity?
Click to expand...
Provide great after sales support, Ask your Clients to spread the word about your service. There's no shortcut to success and Popularity.
DiggDigital said:
5. How to make good sales since hosting is not done by word or mouth.
Click to expand...
How did you come to that conclusion? With social networks playing a major role, any reference/word of mouth can drive huge no of traffic to your site. converting the traffic in to sales is upto your sales representatives.
DiggDigital said:
6. What are the major thing to be consider before starting the business?
Click to expand...
Make sure you know enough about the hosting industry
Have enough funds to keep the company running even when there's not much business.
Get in touch with a host who can provide you a Quality reseller hosting or dedicated server. Your hosting quality would majorly depend upon the kind of service provided by your Datacenter. Any downtime would affect your Brand.
Dont try to be cheap, There are tons of them already competing for a small no of usere who prefer price over quality.

Hope you got your Answers. Good Luck Hosting.
 
Do you have any pre-existing experience in the hosting industry?

If you don't have deep knowledge with linux and networking, you'll have no chance of survival in this business.

If you want to start with "something", i suggest you to look into Webhosting. A bare metal server + cPanel + WHMCS/Hostbill, will be the best way for you to gain on experience and make some money.
 
Last edited:
cloudcandy said:
Okay, There are lot of things you must understand. Let me just answer your questions one by one


Yes it is, But Just like any other business. You will be expected to put in a lot of money and time before you get to see any profit.
DiggDigital said:
2. What is more profitable VPS or Dedicated servers?
Click to expand...
Depends on your Business Model. There's no such thing called as which is more profitable. If you have a collocation or a DC, Then Dedicated would be more profitable & easy to sell. Where as, you are a reseller or have a dedicated on Lease then Selling VPS would be more profitable but then it comes with its own overhead of providing support to many individuals and also handling Abuse. You might also suffer loss, If you have a lot of servers laying idle in your inventory.
DiggDigital said:
3. I know any host can have there own profit margin on sales. But i would like to know whats the standards of profit startup hosting business have to run their business by which they dont run loss.
Click to expand...
There's no such governing body which can decide on this, Its upto the Host. There are many who run in loss initially to get more client so it varies from one Host to another. Try to cover the support cost plus the hardware cost initially. Once you are a brand, you can raise your Profit levels.
DiggDigital said:
4. How to get the popularity?
Click to expand...
Provide great after sales support, Ask your Clients to spread the word about your service. There's no shortcut to success and Popularity.
DiggDigital said:
5. How to make good sales since hosting is not done by word or mouth.
Click to expand...
How did you come to that conclusion? With social networks playing a major role, any reference/word of mouth can drive huge no of traffic to your site. converting the traffic in to sales is upto your sales representatives.
DiggDigital said:
6. What are the major thing to be consider before starting the business?
Click to expand...
Make sure you know enough about the hosting industry
Have enough funds to keep the company running even when there's not much business.
Get in touch with a host who can provide you a Quality reseller hosting or dedicated server. Your hosting quality would majorly depend upon the kind of service provided by your Datacenter. Any downtime would affect your Brand.
Dont try to be cheap, There are tons of them already competing for a small no of usere who prefer price over quality.

Hope you got your Answers. Good Luck Hosting.
Click to expand...

Thankyou, Its very informative. But what do you say about pricing? Should i maintain standard pricing or marginal profit pricing at the beginning?

__________________
Added after 5 minutes:

BlazingFast said:
Do you have any pre-existing experience in the hosting industry?

If you don't have deep knowledge with linux and networking, you'll have no chance of survival in this business.

If you want to start with "something", i suggest you to look into Webhosting. A bare metal server + cPanel + WHMCS/Hostbill, will be the best way for you to gain on experience and make some money.
Click to expand...

Yes i have knowledge about the industry. Trying to understand better!
 
Last edited:
Do keep some profit, That's why you do business at the first place. Try comparing your prices with your competition and come up with a pricing that would seem attractive for the client and make sure your after sales service is much better then pre sales.
 
cloudcandy said:
Do keep some profit, That's why you do business at the first place. Try comparing your prices with your competition and come up with a pricing that would seem attractive for the client and make sure your after sales service is much better then pre sales.
Click to expand...


Thanks!
 
You can start web hosting business and its really profitable, but you have to keep patience and work on promotion a lot to get visitors and customers as competition is really tough. You wont be able to see the profits at the start but if you keep promoting and invest in advertisements, then you will see great profit in it!
 
you seem to have all the answers you need, and appear to have already started, so i was just checking back to see how things are going?
 
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