6 Things to Review Before Starting a Web Hosting Business

starting a hosting company
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It takes a lot of technical expertise, patience, business skills, and constant efforts to start and sustain a web hosting business successfully.  Though the innovation of control panels, one-click installers, and other modern software packages has made the job easier, managing a hosting business isn’t as easy as it sounds!

1. Familiarity with Latest Platforms and Software

You need to know what latest software and platforms have been added, how they work and how much they cost.

It’s imperative to be familiar with the software installed on the server.

2. Leasing/Purchasing Servers: In case of buying own severs, you’ve many options; you can lease your server from esteemed firms, like Gateway or Dell or get a custom-built by makers. On the other hand, you can buy reseller hosting packages from big guns like GoDaddy, HostGator, LunarPages, iPage, JustHost, FatCow or InMotion (that happens to be the latest entrant in the reseller hosting arena, and is currently offering an enticing deal on reseller packages). Choosing reseller hosting provider is one of the most important decisions to be taken before launching your own hosting business, and if you go wrong here, then everything would eventually fall apart!

3. Customer Support: In order to keep your customers happy, you need to offer them support to handle all their problems in a professional manner, without keeping them waiting for hours together.

Every client expects round-the-clock support and quick response in any line of business, but if you’re thinking of starting a hosting business at home, then it becomes an extremely crucial aspect. You should be able to handle all sales and technical issues on high priority. Only if you’re sure about offering such great level of support, you should actually proceed with this idea.

One-on-one contact and email support should be offered to fix urgent issues instantly, and even when your parent hosting provider isn't able to help out, you should have a dedicated support guy to handle issues on high priority to keep your customers happy at the end of the day.

4. Selection of Control Panel: It should have rich and robust features that go with your business requirements. cPanel becomes a necessity when it comes to choosing a user-friendly control panel.

5. Flexibility: In case you’re starting out as a reseller, your parent firm should offer customizable packages that allow you to create and market unique hosting packages, and scale up at every stage. If your parent hosting provider bills you heavily, and doesn't offer the needed flexibility, then all your efforts will certainly go in vain.

6. Reputation of Parent Company: Last, but not the least, look for customer reviews and try to know what other customers have got to tell about the parent hosting company that you’re about to choose. If the firm has been known for unexpected hiccups such as network problems, security issues, and unplanned down-times, then the chances that even your hosting customers would get frustrated with such problems sooner than later.

And, the worst part would be that you won’t be able to cover up, since the customers would hold you responsible for the downtime, and not the parent company!

Apart from all these, here are 6 more tips to remember -

1. Don't start out a hosting company by blindly becoming reseller of a hosting provider just because they offer great CPA offers.

2. Don't try to white-label and reseller the services of a not-so-popular host, because it'd be as good as starting and promoting a new venture.

3. Piggy-back on the success of popular hosts in countries where they don't have strong presence, but at the same time, not too much competition either.

4. Ensure that your parent hosting company provides great up-time

5. Beware of payout history of the selected host whom you're planning to promote as affiliate/reseller.

6. Don't invest heavily on promoting a new hosting business, until you see the public response.

Look at the various hosting plans in the market, and compare pricing options to come up with something very enticing. You need to offer a reliable, competent business web hosting package to attract new customers, especially if you’re a new player in the market.

In the end, it's about the art of marketing, so go ahead and give it your best shot, keeping the aforementioned facts into consideration.