Start Web Hosting Business | How To Start A Web Hosting Company

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We are all very familiar with hosting companies. In fact, 99.9% of us have a hosting company for our portfolio sites, personal sites, or blogs. Today I am going to outline a step by step guide how to start your own web hosting company and business.

Step 1. Get A Powerful Back-end

The most important things to keep in mind when creating a web hosting company are your expenses and the time you need to spend on each client. You need to have a back-end that will allow you a lot of room for markup and profit. You also need a back-end that will allow easy client sign-up, with minimal work on your part. This is why I recommend you use a reseller hosting package. You do not need to invest in expensive servers. You do not need to monitor them for down-time and risk losing all your clients if something on your server breaks on Friday night and you fix it on Monday or Tuesday. You do not need to buy expensive cPanel licensing (you are saving $450 per year just on that) and all other software. I suggest using HostGator’s Reseller Hosting, that comes with already prepackaged cPanel, WHMCS client billing software, Fantastico and much more.  In case you don’t know what WHMCS is, it’s the all-in-one client billing/support software. It allows you to create invoices, subscriptions, and even has a great built in support ticket system. You get it for free with HostGator reseller hosting, which I think is pretty hard to beat. You can use coupon 25PERCENTSALE to get 25% off your order.

You will want to offer at least several hosting plans to your clients. People always like to have a choice, so offer 2-3 plans. Think about how you want to split the bandwidth/hard drive space that HostGator gives you in your reseller hosting plan.

Step 2. Create A Converting Sales Page

What good is a powerful back-end without a powerful front-end, right? This is why you need to create a very well converting and optimized sales page. Things to keep in mind: a) price. Make sure you set a price that is affordable and competitive; b) put forth the benefits of hosting with you; c) hosting duration – do you want to lock people into a contract, or give them freedom to pay month by month? d) promotions and special offers: give people coupons and incentives to host with you as opposed to another company; e) assure people your hosting is reliable. The 2 most important considerations for people buying hosting are price and reliability. Make sure you touch on those points in your sales page. See my list of Best Hosting Website Designs for inspiration. If you are a web designer, you can design the sales page yourself.

Step 3. Market Your Web Hosting Company

What good are a powerful back-end and front-end when you don’t have clients? This is why, after you create a powerful back-end and front-end, you must market your web hosting business everywhere you can. Put a link in your signature and post on relevant forums (Web Hosting Talk is the #1 hosting forum). Write relevant articles and submit them to article directories (Ezine Articles, GoArticles and others). Build links to your web hosting website. Market yourself on Twitter (see my post on how to get Twitter followers on autopilot), Linkedin and Facebook.

About the Author

Iggy Ko

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I am the owner and main person behind WebDesignDev. I blog about all kinds of web design topics.

Iggy KoStart Web Hosting Business | How To Start A Web Hosting Company
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Comments 40

  1. Abiodun

    Nice articles… good work.

  2. Hanan

    Your article is really helpful for my , Thank you .

  3. rossanesimpson

    Great Article and such nice creativity great work i like it thanx for the sharing great article.

  4. Pixeno

    Brilliant article. I think having a powerful backend is very important!

  5. Bronson

    Nice tips, thank you – when it comes to automating account creation which would you recommend WHM Autopilot or WHMCS?

    1. Web Design

      I would recommend WHMCS as majority of people use it. You also can’t beat the fact that it comes for free in the reseller hosting recommended above, but would otherwise cost you at least $250 to buy : )

  6. James Hicks

    Good article. Precisely why I have partnered with the best Premium WordPress Hosting service, Page.ly to provide hosting services.

  7. Hosting India

    My website is under Host Nine hosting packages and I am happy with them. Their packages comes with Free WHMCS and most amazingly with different IP address hosting accounts. I do find this article useful for beginners. There are many other hosts too when a company grows a hosting business need to opt for vps and dedicated as well. So keep researching the net.

  8. Sol Danmeri

    Absolutely and also if you are an internet marketer, affiliate marketer, a full time Blogger like me who needs a multiple of website domains for his different Blogs, its wise to have a reseller account. Funny, I am with Host Nine and there service is really good. No problems at all. Thanks for the article. I read this article as I am on your mailing list. I have unsubscribed to so many mailing lists, but I am happy to continue receiving this gems of wisdom from you. Keep up the good work.

    1. Web Design

      Thank you for your warm words, Sol. Keep up the great work – it is far from easy to earn enough from simply blogging.

      Iggy

  9. Jason Chechik - Kwik-Web

    This post was a fantastic read. Thanks for posting

  10. web hosting

    Nice information about starting a web hosting company. An easier way may be to become a reseller.

  11. Tee McClamb

    Excellent post. I’ve recently started offering hosting with my web design services and these tips will come in handy. Thanks!

  12. Ted

    As a web designer, I have always been looking at getting into hosting my client’s websites. I guess my main reservation has been not having enough demand to justify paying the reseller fee every month. But then having a separate website and marketing for that service should close that gap. Thanks for the info.

    1. josh

      I’m a web designer looking to do this as well. How’s it working out for you? When your client asks for hosting advice do you now have the option to say “you could host with me for such and such a price?” and what about support, are you bogged down with support issues?

      thanks.

    2. Mark

      I was reluctant to move into web hosting for sometime before I finally decided to take the plunge about a year ago. Like you, one of my main reservations was gaining enough hosting clients to cover the reseller fee each month, but I was presently surprised by how quickly I was able to gain clients.

      As for the support side, my reseller provider here in the UK almost always respond to support requests within the hour which is obviously very important. In fact, this was the main reason I chose my provider. That and the fact I’m also able to register domains on behalf of clients, and register them in the clients name.

      I think as a web designer it definitely adds another string to your bow when you’re able to take care of the whole process from design and build, through to domain registration and hosting.

      If you are thinking of moving into this area, it really pays to spend time doing your research and articles like this are very helpful.

  13. ajay

    very good informaton.thank you webdesigndev..

  14. Bambi Corro III

    Thanks for the info! Currently, I’m hosting with HostGator and no problems at all. And I’m thinking of getting a reseller account to start hosting for others. Cool!

  15. Samu

    nice work.

  16. Web Design

    Hi Olabode,

    Great question. At this point, you need to start promoting hosting to either your current or potential clients. For instance, if you have a web design business, you should already have a list of clients who definitely have websites and may be interested in hosting. Contact them and see if they are interested. In addition, you can market web hosting separately through various mediums such as forums, blogs, Yahoo Answers, Facebook, Twitter and more.

  17. Femi Oz

    Great Article.. You just gave me the motivation i’ve been waiting for.. Thnx

  18. Asifa

    Great article especially for newbies on net. Anyway thanks a lot.

  19. Butch V.

    Nice article! This should help me out quite a bit :D

  20. Eric

    This information is going to really help me set up HostAllDay.Com . Nice Articles!

  21. sowmya

    it is really great i liked it very much

  22. Vusi Mapholisa

    Good stuff!!!

  23. Web Design

    Absolutely love this article! Very very nice

  24. malek

    This is awsome tips.

  25. Colin Crawford

    Nice article and well written. I got a Reseller account so that I could host the websites that I was building as it made sense to do it this way rather than buying individual packages. At least this way I could make more money hosting these websites and give a proper after care service. It also allows me and the client to keep in touch for any future work regarding updates etc.

  26. Warren Kuan

    Wow, I’m so happy to know that, a beginner like us can start doing own web hosting business too…..

    Thanks for making it so EASY to follow and understand ;)

    Best Regards.

  27. Lori

    Thank you for the information. I just have one question for you. When providing hosting services to clients I have noticed that 24/7 customer support is offered. I spoke with Host Gator about this and they say that the support for someone who has their own hosting service does not come from them, so if not then how would you provide 24/7 to clients?

    1. Web Design

      You can provide email support 24/7 – meaning you will reply to email tickets the same day they are received. This is the most efficient way for a small hosting company to provide support. You can also justify not having a support phone number by stating on your website that providing only email support allows you to offer more competitive pricing. Of course, once your company grows, you can outsource someone to provide both phone and email support so that you don’t have to do anything.

  28. Abhishek

    Hi
    I am at present providing video communication solutions through corporate Video production in Delhi. I want to diversified my business in the web-designing and hosting. I want to become Reseller of a good hosting company so that I can book Domains for my clients and can design their websites.

    I have done a little bit of research on this I am facing huge problem in understanding technical terms like Domain alias , sub Domains, etc Can any body suggest a book or website that provides useful information on how hosting works, what are domains, what kind of know how a business man should have before starting a website hosting (Reseller) and design services your help will be appreciated
    Thanks

    1. Dokto

      re: Abhishek
      Try googling any term that seems foreign, strange or confusing. The Google supplied links from that search are generally wonderful. Good luck with your venture, although I am not a fan of PC video…

  29. Conversion Rate Optimization

    Very very interesting your article, I didn’t know that there are resellers for hosting. Thanks :)

  30. Chris Sawyer

    As a new web designer on the block, I found this incredibly helpful. Thank you!

  31. Precious

    I fink everything i know about web design and hosting came from you and your site. Thanks!

  32. Mark Excell

    When I started offering hosting, I did look at the above but actually found a company who would let me buy a VPS and sell of the spare space. The company also offer 24/7 support to my clients, this allowed me to take ownership of the process much more than a re seller account. It also meant I could fit the packages around my clients…

  33. Caleb

    Thanks So much. I must say you are God sent cos this has been a question on my mind. Would print it so i can read it again and again till everything sinks. Thanks

  34. Andrew

    No need for a Reseller account when you host with hispecservers.com just host your clients with us and we pay you an ongoing lifetime commission. Plus our superfast hybrid hosting has full Pro Support and all the advantages of dedicated hosting without the fee.

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