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Is Providing Hosting Worth It?


EXRN

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Hello,

 

I have leased a managed, dedicated server for quite some time now. I didn't get the server to provide hosting, but I do manually host a couple of small business sites on the side.

 

I like the idea of automating the hosting and billing tasks.

 

I know that competition and technology has driven hosting prices way down. I was curious if you can still make money by providing hosting services. Do you find it hard to compete with the big companies like Godaddy?

 

Is WHM Complete Solution as seemless as it appears?

 

Thanks!

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okihost,

 

Thanks for the reply. I'm not sure what you can offer in addition to the normal services. I am customer-oriented and can offer great customer service, but I'm not sure if that's enough.

 

Any suggestions?

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With all the small hosts out there. I think demonstrated reliability, top notch customer support and service are certainly key issues.

 

In the big picture. I don't know that it's what will make you stand above the competition that will get you noticed as much as lagging behind the competition will for sure stand you out the wrong way.

 

Hosting isn't my real job and I only host a few (22 or so). I can't afford to advertise heavily so I rely on word of mouth amongst business associates. I also mainly cater to businesses that I provide other services to that being able to provide a web presence makes a more complete package.

 

As for WHMCS being a complete solution. Not perfect, but far, far exceeds the quality and usability of any of it's competitors. You wouldn't regret the purchase.

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Hosting is definitely worth it - the only reason there is a perception that it's worthless is because half the people who say it's worthless are disgruntled 15 - 18 year olds who frankly don't have a clue and shouldn't be running any sort of 'business' operation :)8)

 

That said, as in any industry, the real money comes from value-added services and correct application of specialist skills. Dell don't make their zillions by selling their cheapest PCs, for example :)

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Worthless.

 

I quite like the hosting world.

 

Ive only been doing it for around 2 years but ever so recently i have been getting more clients that i do custom programming for and they want me to host their websites.

 

Its an excellent world.

 

You can get rich quick with hosting. Thats one thing i learnt by being a reseller to start with.

 

I now own 2 servers which is super cool.

 

Dom :D

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  • 2 months later...
making money while you sleep

You sleep? I find the more clients I get, and the more servers I run, the less sleep I get. I figure by the time I'm wealthy enough to stop, I will owe about 12 years of sleep to myself... 8)

 

Ditto, I think I've been up since 11am yesterday sorting out cPanel servers and clients on AND off our network. Won't get no sleep until about 10pm/11pm tonight (GMT Time and it's only 04.38)

 

:!:

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  • 2 weeks later...

It really just depends on your methodology and how much effort you can put into running a hosting company. I've been running mine for almost two years now, and there have been months where I didn't have many new customers come in, and then I've had a few months where almost every day, a new customer signed up.

 

The best way to bring in new business, to profit from sales (the money you make after you take out the cost for software, server, anything else that you pay for to run it), is to advertise whether it's posting your link up at a forum, finding people who want to leave their current host but still have some months left with them (contract buy outs!), and word of mouth.

 

Most of my clientele is fun word-of-mouth. It's amazing to just see how well it's gone, and how I didn't have to do anything to bring in money. I had Google Adwords running for awhile, but I finally just stopped it. I had already paid over $100 for advertising over a few months (I had a $30 cap) and comparing new customers I got (none) versus what I've paid.. Was not worth it. Yeah, I may have had over 2,000,000 impressions, but if it doesn't produce results, ditch it.

 

What brought in more clients were running big promotions, like 50% off shared and reseller accounts. They LOVED this and went nuts for it. It helped out at that moment since I got a payment in full for a whole year, but sometimes you do want to have monthly revenue coming in.

 

Hmm.. basically, you just really need to focus on cold calling to bring in the business, and after a few months you can start to really rely on your clients to refer people in. Just gotta keep doing it every day though.

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Sleep = "DREAM" start a hosting company one day

 

Sleepless sets in = Hosting company started, a hundred or so customer, bills to pay + How to Grow

 

NO SLEEP = 7 Servers + 4 Data Centers, + 2500 Hosted Accounts + 5000 Domians + marketing Budget + first full time employee + outsourced call Center + Cdn Taxes + + + + +

 

 

what is sleep = i am stared this might be our next step

 

LOL

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7 servers, but 4 data centers? huh?

 

*confruzzled*

What's confusing about that? Spreading the servers amongst several DCs is smart. One goes down, not everyone goes with it...

 

Nah, you just made it sound like *you* had 4 data centers.

 

Which is why I said only 7 servers but 4 data centers.

 

But if you said "7 servers in 4 datacenters," wouldn't have gotten confused ;)

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