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.
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.
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.
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.
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