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Hosting Discussion > Operating a Web Hosting Business > Web Hosting Business and Legal Issues > What do i need to start een web hosting business?
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  Post #1 (permalink)   01-28-2004, 08:49 AM
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Could any body tell me how mutch it would cost me if i want to start a web hosting business. incl (advertising,server,serveradministration,ect.)
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  Post #2 (permalink)   01-28-2004, 09:13 AM
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Really can't tell you how much it would be, but I stared with a reseller and then went to a dedicated server. Start small and go big.
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  Post #3 (permalink)   01-28-2004, 09:19 AM
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Agreed, more of a waste to just jump right into a dedicated server, reseller gives you a little to play around with too to get familiar.
 
 
 


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  Post #4 (permalink)   01-28-2004, 10:21 AM
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Hey,
Firstly, welcome to HostingRefuge

The first thing to consider about starting a hosting company is if you have the time to support your clients and enough knowledge to allow you to run a business.

If you want to start small, you can start off with a reseller account as others said.
A reseller account allows you to setup accounts for other people which you are the "owner" of.
With a reseller account you dont have to worry about server admin as someone else will take care of that for you (the server owner)
There are a lot of limitations with reseller accounts including that you cant install anything on the server, change the main configuration of the server, you must depend on your upstream host to help you with problems on the server side etc.

The next option would be a VDS/VPS.
Thats like a dedicated server only its a dedicated split up into different sections, and you will have one of the sections. That gives you root access so you have a lot more control over the server, but still a few limitations set by your host.
You get less space/bandwidth per $ that you spend but its not too expensive, and normally there will be someone else managing your server also.

Then the final step would be a dedicated server, which costs the most but gives you complete control over everything on your server.
They cost from roughly $99 up, depending on what you want.

Then you have to buy your scripts, add a price for a control panel monthly, get a CC processor/merchant account which could be monthly fee and take money out of transactions, or just take money from transactions.
You might need other support personnel but normally you wouldnt at first.
You might also need to hire a server admin if you dont know how to admin and secure your server, which could cost a good bit if you only have one server.

If you wanted to advertise once you got started the price varies by a huge amount, depending on where you want to advertise, when, and how often.

There is a lot to factor in so its something you really have to think about and do a bit of research into before diving on board and realising its a lot more work than you expected.

Hang about here for a while and ask as many questions as you have and try get a bit of research done, then when you think your ready, start asking for help on which company to go with, what scripts to get for your company etc. etc. and you will soon be on your way.

BUT, as I said, its a lot of work and work out if you have time to support your clients, it is a business and people will be depending on you, sometimes even to keep their business online.
 
 
 


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  Post #5 (permalink)   01-28-2004, 02:54 PM
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Hi, when I got started I just went for a small reseller account then found myself moving from one host to another. Try to find a good one out there. Remember everybody has downtime, it's just part of the business so you have to perpare for that.

Also, before you find your host you should look into what control panel you want to support.

Ensim, Plesk, cPanel are the most popular and I have used them all. My personal experience is cPanel is better of the 3.

Then you need to find out how you are going to accept payment. Merchant account, PayPal, 2checkout. Just starting off I would go with paypal and 2checkout. PayPal is not everywhere but 2checkout is. PayPal you get paid faster, 2checkout is 2 times a month. A merchant account will run about $50 - $60 per month just for the account and it usually has a 3 year contract.

Billing software: Now, you need a way for your customers to see there invoice. ModernBill is the best in my experience but there are others like phpcoin (free - never used it), Ubersmith - little expensive, phpmanager (cheap - never used it).

Support: New customers means lots of support call. You can expect a lot of time talking to your customers and or fixing problems until they are stable. More experienced users usually don't need support but the customers who do not know much do and they will ask for it too.

Advertising - I found that it just does not pay. Sure it is nice to have your banner and stuff out there. You will find most of your customers locally and in the message forums like this one.

Stick with it, you will probally not get much business for the first 6 months. I have been hosting for 2 years and it is stable but not expanding. But, then again, I don't advertise and it is a part time income for myself. My users seam happy so that's all that matters to me.

Hope this helps, this is from my personal experience and others will have other opions.
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  Post #6 (permalink)   01-29-2004, 07:00 PM
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I'd first sign up for a reseller account, get a nice design up and a good support team. Some nice billing software like modernbill is nice but not needed. Start advertising, post on forums about your offers maybe buy some advertising. Once you get a couple of clients start a forum. If a future costumers see that the forum is active they'll feel "safer" buying hosting from you. Then as you start growing buy a dedicated server, maybe even colo?

I started a couple months ago myself. It was tough just to get the first customer but I did it. Now I make roughly $450 US a month with a client base of about 55. I started on a small reseller account and now use a dedicated server I purchased from burstnet. It costs me $120 a month for the server. My total costs come to $200. In your first month don't expect profit, infact expect to lose profit, but gain customers.
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  Post #7 (permalink)   01-29-2004, 07:58 PM
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wow, 55 customers in a couple of months. Not bad at all. I need to see how you do it. Comming up on 2 years and about the same but my income level is a little higher but you are doing very good.
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  Post #8 (permalink)   01-30-2004, 08:39 AM
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That is a great client base!! I have around 14 customers paying. I pay 90 for my server and I make 101.. I am just breaking even with my PayPal fee's.
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  Post #9 (permalink)   01-31-2004, 06:10 PM
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My say is a good amount over 500, includes server, design, advertisement, client management script and such things.
 
 
 


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  Post #10 (permalink)   02-01-2004, 03:12 AM
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Firstly pre-pare for long hours. When setting up jvds I was (and to a point still am) working 20 hours days getting the hang of things. Also customers come first. They pay the bills. Its a fun exciting ride but above all be there to give support as that will make you/break you

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  Post #11 (permalink)   02-06-2004, 03:47 PM
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it depends. how do you want to start? reseller or your own server? can you make your own site? buy a template? custom design? Can you provide support?

I have helped startup 4 different companies. 1 with $50 1 with $300 and 2 with over $5000

The ones with over $5000 Took of like a rocket getting 150 signups in their first month.

The 2 smaller ones did not take off like a rocket but are doing fine now. The most recent one with $300 has been running for 3 months now and are making $$.
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