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How to Make Money with Web Hosting

Jul 26, 2008
Web hosting is a booming business that is practiced all over the world by a large number of companies. For a desired web hosting service a company requires some specific equipment. The services of web hosts are not just limited to providing server space and hosting the client website. But they can also opt for several other ways in which money can be earned. Since web hosting is a very competitive business today, people want to look for unique opportunities which can be utilized for earning money.

The opportunities are wide-spread for the web host that has the provisions available to create them. These services increase income and create improved relationships with their customers as well.

Below are some of the methods that can help the web hosts to make money.

Extra Ways to Earn Money with a Web Hosting Service

Reseller Web Hosting: This is an excellent method of earning money without much effort. The web host can purchase a web hosting package at a reasonable amount and resell it to for a larger price. Web masters and web hosts are making large amounts by applying this technique. This has been known to make the web master's richer overnight. However, this is not easy as it sounds to be. The web host needs to make the initial investments and would get the return only after reselling the server space. A small amount of space, exclusively for a small business won't suffice. The web host needs to have ample space purchased in order to begin such a business. After the web host has acquired huge server space and bandwidth, he/she can distribute it to other users in proportions. Each of the customers of his server space would provide him some charge on monthly basis and hence the process would go on.

The reseller earns money in much the same way as the original host. Monthly fees from their customers are pocketed by the seller. Since they have the original host providing things like IT and equipment they are free from that expense. Their income comes from the clients that purchase the service and setting up those accounts for them with the 'hidden' original provider. A reseller is usually offered space by the origin host at a discount that is often as much as 10%. The reseller's profits depend upon the size of the space offered and the bandwidth allowed.

The position of the reseller is largely favorable because it does not have to provide support as part of their package. Some, however are beginning to provide support service due to the heavy competition in this area. Another advantage is the size of the company. It can be operated right from your own home eliminating the need for paying on space rental, and even transportation costs to and from a place of business. Some companies grow so fast they end up needing more space and are buying up more space in order to outshine the competition.

Advertisement: Free web hosting allows a web host to earn from advertising. Since this service is rendered free to the clients, the web hosts what to use the websites of the client for advertisement purposes. These kinds of options are limited as only small businesses and beginners opt for free hosting services. Thus making lots of money with this service is logically not possible.

Other Services to Generate Extra Income:

Search engine optimization: Web host often find this as a useful technique of earning money. All the clients of the web hosts, who are eager to make their website popular, want the application of all those techniques that can help them serve their purposes. In such a case, web hosts can provide the clients information on search engine optimization. Customers or clients can be provided with top search engines and then charge a fees for submitting their address and to all popular search engine like search engines Google, yahoo etc.

* Website template creation: Established web hosts can make more income by providing clients with affordable prices. These low priced services are like come ons in an exchange for building the reputation of the company. The host offers clients the ability to purchase templates. Since everybody wants to look unique they often grab up the offers. The hosts can also give clients a membership to a large template website with fees to join and earn more money on each sale.

* Domain names: This is a lucrative service as all clients will need their own domain name. Any web host that isn't supplying domain names for their clients is losing out on valuable income potential. Registration and transfer of domain names as well as domain parking earns consistent income for a hosting provider. There are various companies to work though to obtain this service such as Domain People, and e Nom.

* Site Builder Wizards: If a host has the ability to provide such additional help with site building techniques they are a step ahead in both ways to make extra money, and ways to lure potential clients in. Everyone wants a website today, but the knowledge of how to create one from scratch is still and elusive ability. People congregate to places that offer this type of assistant making it easy for them to create their own sites. Clients have high expectations now though, so it needs to be able to provide a full range of features.

Note of Caution: Don't oversell

Regardless which of the methods a host adopts to make more money, it's wise to realize that overselling is dangerous. Overselling occurs when a host offers too many customers space and then realizes it cannot obtain enough space or bandwidth. This creates overcrowding and many clients using a small space increases the danger of systems crashing and taking down the entire hosting business. A single system cannot hold more than a specific number of hosts. Know what the limits are and do not exceed them. The web hosts reputation will rest on this single issue regardless of how wonderful his offers are otherwise.

Web hosting is a legitimate and lucrative way to make money online. By nature it depends on the abilities of its operator as well as the quality of the equipment and services to which it has access. The most secure way to establish a web host service is to start small and grow with your expanding abilities over time.
About the Author
This article is published with permission from WebHostingMadness.com, a provider of web hosting company reviews, comparisons and detailed articles about the web hosting industry.
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