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How to Start A Web Hosting Business?

Start A Web Hosting Business

Web hosting companies provide a very essential service to power the internet by using the servers either dedicated one or others that host each and every website content available on the internet. Starting a new web hosting company may seem like a challenging task, but we are here to provide you with an overview of how to start a web hosting business. Start A Web Hosting Business

These are the 5 easy steps to start a web hosting company/business from home

  1. Define Your Web Hosting Brand
  2. Find a Dedicated/Reseller Server Partner
  3. Setup Your Website, Billing System, and Support Channels
  4. Find Web Hosting Clients
  5. Grow and Expand

Starting a Web Hosting Company and Scaling it up is a big task and must not be taken lightly. People can actually earn quite a good amount if they deal with it seriously. Enough disclaimers, let’s get started!

Define Your Web Hosting Brand

 

build your brand

Web hosts are in the middle-of-the-road these days, so you may be thinking if it is worth it to start a web hosting company. But many industries in the market still have a need for niche web hosts tailored specially for them. Some of the niche markets in the web hosting industry include green energy web hosts, DDOS protected servers, small business hosting, and the list goes on and on.

If you are interested in running a web hosting company, chances are you already have a strong reason why your web hosting services would be better for users than other hosting providers. Figure out very precisely what your market and branding exactly are, and avoid trying to sell to everyone out there.

There are too many large numbers of hosts who already cater to no specific market, so you aren’t likely to make any money trying to sell to all user groups. Instead, start out a small and pinpoint hosting company that caters to a particular segment. Consider the following points when defining your brand: 

  1. Who is your target audience/market?
  2. What is your company’s name? Find a short, unique, and memorable name that has a domain available for purchase. Remember, there are lots of web hosts out there, so make sure your name isn’t taken.
  3. What makes your hosting service better and unique?
  4. What kind of web hosting services will you offer? Shared hosting, VPS hosting, reseller hosting, and dedicated servers are all popular choices. (Shared hosting is the most affordable choice, so most hosts start there.)
  5. Do you wish to provide Domain Registrations?

 

Find a Dedicated Server Partner

Since you’re about to start a web hosting business, you might not have the budget to rent a dedicated server from a DataCentre. It costs around 150$ per month to get started with a single Dedicated Server. Here comes the part of Reseller Hosting. With a good Reseller Hosting Partner, you can start with as little as 5$ per month and later scale as your client base grows.

While choosing a reseller/dedicated server partner, we should also be clear about our requirements. Beginners should always start with Linux Based Hosting which provides the least complexity when it comes to support from the development community around the world.

Once you grow well and have a big client base, you should shift to your own Dedicated Server as it allows you to have the full potential to compete against the giants in the market.

Refer to this article, to learn more about the advantages of Dedicated Servers.

Choosing the correct dedicated or reseller server partner will be very critical to your success. Your clients will not want their content to be migrated if you pick the wrong host or data center, and this error can kill a new web host like you. Don’t go for unreliable dedicated server providers as this will end in disaster. It can’t be their only plus point. Instead, find a dedicated provider like Site Hosting Club that offers several features such as:

  • Best value for the price
  • 24×7 dedicated server support in case of hardware failure
  • Good reputation with best reviews
  • Premium network providers
  • Fast as light dedicated server deployment so you’re prepared for new customers in just no time and Hardware like RAID-10 and SSD which are great for web hosting
  • Safety from increasingly common DDoS attacks and other hacks

You must check for the white label support. Check if your Reseller Hosting Provider is supporting 100% white labeling. This means you should use an anonymous for the hostname of their servers. With white label support, your client will never able to see the name of your hosting provider, which is a must condition for your brand.  We at Site Hosting Club provide you 100% white label support.

This part can be solved very easily by partnering or becoming a dedicated server reseller to “set up” your infrastructure. Site Hosting Club has a long-running, no-fee set-up, and white-labeled reseller program.

 

Setup Your Website, Control Panel, Billing System, Support Channels

So you have dedicated/reseller servers set up and ready to go for your customers. Here’s what you need to do next.

Make an amazing Website

Now create a website as the face of your hosting business. Your website must contain all information regarding your business. The website must contain the About Us page, Company’s history and goals, etc. Also, this must contain your contact information. You’ll also need other systems before you can start selling web hosting.

At Site Hosting Club, we provide you with your own Agency/Web Hosting Business Website at minimal costs.

Choose a Control Panel

Choosing a Control Panel is necessary as it is one of the end products you’re about to provide to your clients. DirectAdmin and CPanel are the most popular easy to use hosting control panels (which shall be provided by us), and they easily integrate with popular Billing Systems like WHMCS.

These are the most popular Control Panels

  1. DirectAdmin
  2. CPanel/WHM
  3. CWP
  4. Virtualmin
  5. Webmin
  6. Plesk (Windows)

At Site Hosting Club, we provide DirectAdmin or CPanel according to your choice.

Get a Billing System that’s Automated

Though a beautiful and complete website is not enough for your brand, you must add a safe and fast payment gateway, which collects your payments. We cannot use Billing Systems like WooCommerce or Shopify as they don’t support automation.

We recommend WHMCS which is widely recognized as one of the most comprehensive client billing and management tools in the market.

While WHMCS is costly (starts at 18$ per month), there are alternatives to it which include the following:

  • BoxBilling
  • Blesta
  • HostBill
  • WiseCP

Support Channels

While WHMCS has a built-in support desk for handling client inquiries, many hosting providers opt to use external help desk software like Kayako or Zendesk. Most new web hosts start off only offering email or whats-app support and choose other support channels when required.

White Label Your Business

Use private name servers, that makes you look professional as well as allow you to easily switch over your hosting provider. Having them, make you migrate your website and database very easily over the internet.

The next tip is using SSL, these are also must require an add-on to your service, they help to secure your website as well as your clients. By going through these tips, you can surely stand out of the queue of the Hosting Providers. At Site Hosting Club, SSL is free for you and for your clients.

Find Web Hosting Clients

Create a buzz of your business in the market, your pros, and your benefits. Once your systems are well configured and tested, you can start spreading the word about your company and find clients. Don’t be afraid to start with your friend circle and social networks. “Word of mouth” sales are critical to a new web hosting company, so ensure every customer walks away from your service happy and satisfied. This is the only time to deliver personalized service with an emotional touch. It will take many hours of your hard work and will mean you are on call 24×7, but the returns for your web hosting business is worth it. Once you have exhausted all your personal networks, you can try the following routes to find new customers:

  • Facebook/Instagram ads and Google Ad-words
  • Local newspaper ads and relevant magazines
  • Advertisements on websites related to your niche market

Grow and Expand your Web Hosting Business

Keeping up with customer growth can make or break any kind of business. Always remember your core values as you gain new customers, and treat every customer as if they could end your hosting company. It’s cliché but the old Hindi saying of “treat people as you would want to be treated” applies perfectly here. Follow these tips to keep your clients happy:

  • Don’t ‘niggle’ clients. Always come up with a good solution to any financial or technical situation.
  • Be honest and open about any problems or downtime. Keep customers informed and in the loop. If it was your fault, take responsibility quickly and don’t give people excuses. Clients embrace solutions, not excuses.
  • Do what is right, even when it may be sometimes very hard.
  • Develop fair SLA, downtime, and refund policies

This is the time to actively listen to your clients. Find out what they like and don’t. This information can be used to reach out to new customers based on your strengths and weaknesses. Pay attention to issues with your web hosting plans — your customers will love you for this, and it will mean a very polished web hosting product.

Conclusion

Starting a web hosting company may be a little hard work, but it can be very rewarding when done properly. Did these steps get you thinking about your plans about starting a web hosting company? Tag us @sitehostingclub on Instagram to tell us more.

 

Read our post: How to Start a Blog in 2020: 7 Easy Steps to Start Blogging

 

The author

Prithwiraj Sinha

Prithwiraj Sinha

Founder and CEO @ Site Hosting Club
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