How did you get started in web hosting?

J

jlynch

New member
I've done a lot of domain name reselling, but haven't yet dabbled in web hosting. How does someone get started in this? It seems like a smart option. Any tips would be appreciated.
 
If you don't count the "server in my bedroom" at 14yrs old step(which I don't) than I started with a small dedicated server. Back then that's all you could really do, although now there's VPS and reseller accounts that mite be your best bet at first.

I personally suggest a VPS to start because it's affordable, and youhave total control(even if you don't need it). The most important part about a VPS vs a reseller account IMO is that your resources are dedicated.
 
I'd also recommend a Reseller account with a reputable provider. Using a reseller accounts allows you to focus on marketing and capturing sales, rather than server management and monitoring.

Additionally, its always a bonus if you can find a company that provides end-user support. This means that your reseller account provider supports your customers for you, once again allowing you to focus on sales.
 
Thanks for all the suggestions, everyone.
What is the difference between a reseller account and a VPS?
Do you recommend any specific companies to work with?
I think that it makes sense to take your advice and look into reseller accounts. That seems like a good place to begin.
 
Reselling really is the way to go and it can help if you have a little gimmick or something that helps you to sell. I started by offering hosting to the customer's whose websites I built, and I went from there as I got a semi decent reputation. It's a lot of work though, nothing comes over night.
 
jlynch said:
Thanks for all the suggestions, everyone.
What is the difference between a reseller account and a VPS?
Click to expand...

A VPS is rather similar to a dedicated server. So the owner, in this case its you, would have to administer it, ensure its secure and resolve any issues that may arise. A reseller account still allows you to create your own web hosting packages and accounts, but your provider administers the server for you.

jlynch said:
Do you recommend any specific companies to work with?
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I recommend Hostgator. Having used them in the past I can attest to their prompt support and reliable servers. However there are many other hosts out there..
 
Maybe with the right company, but someone still has to manage it. I'd look more at the company than the package, and wouldn't see the point in starting with dedicated and having it sit empty.

Start small, build up.
 
1. You need to understand that web hosting is really competitive area
2. You need to know for whom and how will you sell web hosting
3. You need to be good at marketing

In simplier words that easy said then done
 
I got started in '96 as a General Manager for an ISP, primarily selling Internet Access and networking - with web hosting as a value add. In your case, I'd start with a reseller package, then upgrade to a managed VPS plan as you grow.
 
I started in a bad way, I started when I was 14, I use to play Socom FTB2 for PSP and use to be a big hacker in the game yes a hacker. I hacked my PSP and then I got into the hacking industry I would go hack stuff like my PSPs, Phones, And IPods then i started hacking accounts on gaming sites nothing to big all I was doing was giving myself a lot of XP for ladder sites there gaming sites more like. Then I wanted to create my own site like a gmaming one and I started working for a company selling hosting for a hostign account then I started doing web design then here I am now with my own company.
 
Yes, you should start Selling Hosting off a Reseller from a good provider. Get a cheap Reseller first and just look over the stuff you can do, Look at A Resellers Book and read or skim threw it and learn what you can do!
 
You should invest some money on adverting and time on forums participations.

Try to build a strong reputation and then is just time for you to get involved in this business.
 
I wrote about this earlier - can't remember when. I'm old - I'm allowed to forget :D
Are you seriously interested in joining the web hosting market? Don’t have a ton of money? Is your plan to start small and grow?

There’s always room in this industry for new web hosts

Consider this. Every week I bought a targeted list of 150-200 new businesses in my area. At least 80% of them did not have websites or hosting. Multiply how many times in how many places worldwide that this happens week in and week out. You’ll never run out of prospects.

It does take some investment in time and money, but it can be done and is being done by new entrepreneurs every day. The ones who survive are normally those who have enough financial resources to withstand their first year in business.

My Advice

Don’t attempt to wing it! Write a comprehensive business plan which includes disaster recovery and business continuity scenarios. Search the Internet, on Google and on forums for reseller plans with hosts that can be upgraded to a VPS or dedicated server. Define your market niche and develop your business plan to close those prospects.

Domain Name Registration

I read a lot of threads comparing domain name services where the OPs focus is on price rather than stability. Realistically, unless you’re planning on registering hundreds or thousands of domain names, price should be a secondary consideration. Choose a domain registrar with a reputation for great service, then price.

Should you register your domain name with your reseller host? The general consensus is NO. Why not? Too many small hosting companies encounter problems with their original host, then decide to transition to a different host only to find their domain name locked in dispute. If you have your domain name with a different provider than your reseller host, then you can simply point your nameservers to the new host and you’re good to go.

I’d also suggest that you provision your domain name to auto-renew. Forums are full of horror stories of expired domain names held hostage or sold at auction.

Marketing Your Business

The first consideration should be the design of your website. Be sure it represents your niche. So many new web hosting providers use a cookie cutter approach that never gets noticed, and they post threads months later wondering why? I understand it’s difficult at times to see beyond your own work. Solicit opinions from others in the industry. There are literally hundreds or thousands of forums filled with entrepreneurs just like yourself who are willing to provide honest opinions of your design, and give thoughtful insight and recommendations. Why try to reinvent the wheel when so many are willing and able to freely help?

Another consideration is Search Engine Optimization

Volumes of information have been written about Search Engine Optimization (SEO) and opinions on how to best approach this vary widely. Some will recommend starting by reading published books, but the general consensus is to follow the major search engines (current) advice because SEO evolves dynamically. What worked yesterday may not work today. What always worked and still works is relevant content and well designed code. Use cascading style sheets, check for browser compatibility, track the keywords that surfers enter to find your site, then tweak your site as needed. Too many small web hosts pour hours of original effort into their sites, but never update anything but price (running sales). The primary enemy of sales is complacency. Google analytics and awstats are great starting places to analyze traffic to your site.

Are you marketing to a local audience?

One marketing strategy is to obtain a targeted list of newly formed businesses, normally at 10 cents per business – then direct mail them an offer and follow up with a phone call within three days (provided there is a phone number). Always leave a voicemail if you cannot reach them. Schedule follow up calls (up to 3 over the period of a couple of weeks), then if you’re still unable to reach them, consider a quarterly direct mail post card campaign. If you haven’t budgeted for an aggressive advertising campaign, growing your new business will be that much harder.

Personalize your initial direct mail offer with your picture, and sign it in blue ink. With each new client, immediately ask for referrals and testimonials. And be sure to send them personalized thank you cards.

If you’ve considered on-site sales, consider leaving personalized scratch pads, with your picture at the top left and contact info at the bottom. Scratch pads are relatively inexpensive and can be found on every desk worldwide with some company’s info displayed – why not have it be yours?

Another great on-site promotion was recommended to me by a very successful sales rep – she has prospects pick a card from a deck, then posts a winner for the matching card weekly on her website’s blog. They’ll absolutely remember you and likely visit your site, increasing your odds of making that sale.

Don’t just leave your business card or literature. Most likely, it’ll find its way to a circular recycling bin. Be unique in your approach. Set yourself aside from your competition. And smile.

Networking

So many entrepreneurs in this business opt to go it alone, or with the aid of one or two techs. Networking is a very necessary ingredient to jumpstart and sustain your business.

I recently attended a conference sponsored by Yellow Tie where the guest speaker mingled with the attendees minutes prior, then started by asking everyone he had talked to, to stand up – we’re talking twenty to thirty people he had never seen or met previously. He then proceeded to ask them to sit down if he remembered their name and association – and one-by-one he called out all but two. How many times do you meet a prospect, exchange cards, chat briefly, then five minutes later cannot remember their name? Networking is a learned skill perfected via practice.

Team up a web designer, or two or ten. Possibly a business consultant? I personally recall a sales rep that networked with an IT consulting firm that directed thousands of dollars her direction when their existing clienteles’s ISP went under. Lay the groundwork for your success by maximizing your connections in the industry.

Merchant Account

A recent Google search for Merchant Account Providers produced 744,000 results. Accepting credit cards is absolutely necessary, but through which merchant provider? My advice is to check with your bank or financial institution first to ask their recommendation. PayPal is a great starting point. Different gateways allow you to receive your funds on varying schedules.

Billing Software

Of course you’ll need some type of billing software, and here again, there are lots of options. Some are open source while most are commercially available. If you’re starting with a reseller plan from a web host, that plan probably includes pre-installed billing software. Be aware that open source software may have limited features as compared to a program such as WHMCS. Do you need all of the bells and whistles? As you grow, how easily could you transition from open source to WHMCS? If there are demos available, try them. Get a feel for what best works for you.

Should you offer Live Chat Support

If you have the time and resources to interact with your prospects online, live chat services can certainly help convert prospects to clients. A great place to compare today’s live chat services is http://live-chat-support-software-review.toptenreviews.com.

Control Panels

While cPanel is a very popular control panel offered by many web hosts as part of their package, DirectAdmin is a feature rich, fast and stable alternative.
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don19 said:
Try to put some adv in google
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That can get expensive very quickly. Even with a daily cap, you could easily run over $3000 monthly in Google Ads. Forum participation works great, as does Article susbmissions and personal blogs.
 
Thank you Steve for posting this! I just saw this post. It's very helpful. :D I like how you break everything down into very simple questions and answers. It'll be great as far as getting started goes. :)
 
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