Friend thinking about starting his own hosting company through a reseller account.



Go in to another business and sell the hosting via that. I've do this with my freelance programming work, and I know plenty of people of supply small business all manner of services... and then say "Oh, I can host your website as well for $X per month."

That's the way to do hosting, not on its own ;)
 
5. Technical Support calls.
6. If the server hasn't failed / crashed / died yet, it will soon.
7. If the datacenter hasn't had a power outage recently, it will soon.
8. If 6 and 7 don't happen, your users will delete some critical files and take themselves offline.

But seriously, even though web hosting is one of the most competitive online markets and you really need to know what you are doing for SEO / SEM to compete, there are pretty good margins and lots of easy add-on services to make money on these days.

Plus now all the cloud hosting companies have APIs, so if your friend is technical enough he can build his own front-end and make it look like he has his own hosting company -- no infrastructure headaches required.

--David
 
Show him the DP forums and make him read for an hour. Show him warriors forum and make him read for 20 minutes. Then tell him those will be his new customers.
 
moomycow said:
Go in to another business and sell the hosting via that. I've do this with my freelance programming work, and I know plenty of people of supply small business all manner of services... and then say "Oh, I can host your website as well for $X per month."
Click to expand...

Bingo
 
hahahh warrior forums suck the biggest dick.... i got banned from them on day one just because I asked some douche bag how the hell is he selling an ebook with information that he claims has made him 40k a month and now sells it for 27 bucks... BAM he complained about me criticizing his product and i got banned... fuck warrior forums
 
Web hosting can actually be a very rewarding business and if done right it is a real business. You do not depend on somebody else in the end other than yourself. The profit margins can be quite high, too. The most important thing is to carve out a niche and then service it right. If your friend tries to compete with the big guys in web hosting - forget it. I am doing web hosting for some friends of friends - small businesses. One guy only uses email - does not even have a website. He pays me $69 a month for something you could get for $4 from any web host out there.

Have him pick a reliable reseller web host. Go cheap and the business will fail. State clearly what services are provided. Setup an automated helpdesk. As the business grows hire or outsource (but not to other countries). Once a dedicated server is needed, don't go cheap. RAID 1 or RAID 5 + offsite backups.

A $35 reseller account can easily generate $1,000 revenue per month if done right.

Web Hosting is different from affiliate marketing. The part I hate is that you deal with customers (I am down to 4 customers and maybe 1 support incident every 6 months). ;) You also have other requirements in regards to being "on call" 24/7 in the beginning (until you can outsource that part). DO NOT provide web design services with your web hosting ever!!!!!!
 
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