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Tips For Starting A Web Hosting Company

Aug 17, 2007
Starting a web hosting company is a great way to make money. Some people even use their web hosting business to pay for the cost of having servers for their own use. Starting a web hosting company is not a get-rich-quick scheme, however, and it does require planning and hard work.

The first step to starting a web hosting company is to create a business plan, even if it is only a rough idea in your mind. Your business plan starts with deciding on the type of niche to which you will market. A niche makes it easier to beat the competition, because there is less of it, and it makes it easier to offer customer support because customer needs will be similar. A niche can be anything from sports sites to hobby sites to church sites. Advertising is also easier because you can target advertising to the people interested in your niche. Your niche market will also determine which type of web hosting is best suited to your company.

There are two major sources of web hosting space:

Reseller Web Hosting - Reseller web hosting is a quick, easy way to start a web hosting company. Typically, a reseller buys a large chunk of web space and bandwidth from the hosting company, and then breaks this large chunk into smaller chunks that are sold to customers. Some resellers, however, advertise and sell hosting with a main hosting company, using either the reseller name or the hosting company name.

Semi-Dedicated and Dedicated Servers - Having a server can offer more space, bandwidth and control than a reseller account. If you would rather opt for your own server, there are a few options available:

Semi-dedicated - A semi-dedicated server is one that you lease from a host company, and there are usually 3 or 4 other resellers on that server.

Dedicated - A dedicated server is one that you lease from the host company, and it is all yours. An unmanaged dedicated server requires you to do all upgrades and maintenance. A managed dedicated server means basic management, like upgrades and maintenance, is done by the host company.

Co-location - If you have your own server, but cannot afford the costs of T1 lines, you can have your server housed by a datacenter. They connect your server to all of their lines, but you are still responsible for management of your own server.

At this point, your web hosting company is ready for basic business building. You will need to select a catchy business name, and then register your domain name. You will also need to register your business with the appropriate government agencies. Create a web site to bring in your sales, preferably using something related to your niche. Finally, advertise, advertise, advertise.

Web sites, whether business or personal, are in high demand. While a web hosting company is not always an easy business, it can be a profitable one with planning, research and hard work.
About the Author
Visit http://www.fortrustllc.com a Colocation Service Provider for resources to start your web hosting business.
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