To start a web hosting company, you don’t have to do much. You have many options. You can either purchase a reseller plan from a web host, or you can buy a server and administer the server yourself. Many of the most popular web hosts are actually resellers of other hosts. That way, they can concentrate more on the marketing and sales aspect of the business rather than the technicals.
For example, Startlogic is a reseller of Ipowerweb. Basically for every client that they sell web hosting to they give Startlogic a fixed cost maybe $3 per an account, but they sell to their clients at $7.95 per month. In exchange, Ipowerweb does all the support and the account setup for the company. As a result, the owner can concentrate on selling instead of keeping existing customers satisfied. The problem with most web hosts is that they focus too much on keeping existing customers happy, when in fact they are not even growing. Without growth your business cannot survive because your cost of services will go up but your revenue will decline.
Majority of clients usually prepay for 1 to 2 years, so when you stop getting clients, you won’t be incurring much recurring income. Rather, you will lack the funds to continue your business. When you run your own server for web hosting, you run the risk of losing the client’s data especially if you are inexperienced, however, it is the best option for you if you wish to grow. Since the cost is lowest when you run the server and it gives you more flexibility on how to run the server, you are best off with this option only if you are an experienced system administrator. Getting new clients for a new web hosting company is becoming more and more difficult because there are so many companies promoting their services that consumers always have a hard time deciding.
