How to Launch a Web Hosting Business

Every website or blog requires a web-hosting service. In layman’s terms web-hosting is a service that ensures your company’s website is accessible to users via the Internet 24/7. There are many benefits of starting your own web-hosting business. However many have tried to launch a successful hosting business and have failed miserably. Web hosting is not a get rich quick scheme or a business that is easy to run. Running a successful web hosting company requires patience, exceptional technical knowledge and a strong computing background. If you do decide to start your own hosting company, here are some basic tips to help you get started.

Familiarise yourself with the latest hosting platforms and tools

Research the latest software and their pricing. You may have experience in a particular web-hosting platform. However if you are dividing to set-up a web hosting company, you need to evaluate all leading platforms, current trends and commercial licences if applicable.

Linux offers many advantages over Windows and is arguably a better platform for providing web-hosting services. Linux is available in many versions or flavours. Ubuntu, Fedora, Red-hat and Cent OS are some popular examples of Linux operating systems used widely in web-hosting. Linux can appear complicated initially and you need either practice or professional training to operate. Once you have gained the experience, you will be able to perform complex tasks more easily and in less time. In spite of graphical user interfaces such as Control panel and Plesk that are available for managing Linux Servers, a strong background in Telnet Commands is essential to maximise its benefits.

Choose the right Server

The physical server or hardware is the primary real estate for a Web Hosting company. As a web hosting company, you will essentially be selling web space on your server to your customers. For example if your server has 500 GB of Disk space, a majority of the space will be utilised for setting up independent web hosting accounts that you will then be able to sell to  you customers.

You will need a server to host websites on. Although, technically it is possible to buy your own hardware and host it over your broadband connection in your office or home, it is recommended to host your server from a dedicate data centre. If you have the right server knowledge and experience, your can lease a dedicated server (managed server from the Data-centre) or get a Co located server (where you put your own server in a data-centre. The data-centre provides bandwidth and physical space.) Both dedicated and co-located servers offer you full control over your servers and you are fully responsible for managing your server.

Alternatively, like many web designers or web design companies, you can purchase a reseller web hosting package from an established web hosting company. This will allow you to resell web-hosting to your customers under your own brand. Although this offers benefits and reduces risks, it offers limitations especially if you are experienced in web server management.

Start a Website or Blog for your Web Hosting Company

One of the first and most obvious things will be to set up a website or blog for your web hosting company. Blogs are amazing and can be used very effective in generating traffic and business for you. Blogs tend to rank better in search engine results than regular websites. The simple reason is that search engine rankings are being driven increasingly by fresh quality content and blogs tend to be more effective in serving these to search engines. A blog can be eqaually effective to market your services than a regular website whilst giving you a head start in  Internet marketing.

Ensure you have a Unique Selling Proposition (USP)

You will be competing with millions of other web hosting companies and it will help if you have a unique selling proposition. Researching your competition can help identify something unique that your web hosting company can offer to its customers. The web hosting market may seem saturated, but there is still room for another good company. Once you have identified your USP, make sure it is conveyed in all marketing materials you use to promote your web-hosting company.

Technical support and maintenance

Prompt support is a very key aspect of having a successful hosting business. 24/7 Technical support with same day response time is the expected Industry standard. Once you start your Web Hosting Company, you will be required to to meet support requests ranging from email issues, website or database down-time to general requests for help or assistance.

Server maintenance is a highly specialised task that requires experience. If you are not experienced in server administration, you can either hire the expertise or outsource your technical support to another company or team.

Marketing your Web-hosting Company website

In order to be viable, you will need a marketing strategy for your web hosting company. The nature of the business makes Internet marketing the ideal method to promote your web hosting company and reach out to your market.

Focus on search engines as well as Social media. Use social media extensively to promote your web hosting company. Make sure your site has a lot of relevant information, a lot of links and information has to be added and changed at least once a week. Adding a news section shows that your site is regularly updated.

Another way to promote your website is to use Pay Per click programs like Google ad words and Overture. It can prove effective in the short term. Feel free to try out other innovative approaches if works for your business. You can give away Free Web Hosting to popular websites or blogs in return for free advertisement. The possibilities are endless. Use a range of methods to generate back links from popular pages and improve your rank on Google. Signing up with appropriate hosting affiliate programmes is another great way to market your services.

Summary:

To summarise, web-hosting is not an easy business to start, and requires technical skills and experience but it can be a profitable and rewarding if you are willing to take the necessary steps. The profit margins are high especially when you have acquired a certain number of customers. Moreover it brings repeat business and any customers you gain are likely to remain with your business for many years to come.