Start A Dedicated Server Hosting Company - Business Ideas

Updated: September 15th, 2022
Start A Dedicated Server Hosting Company

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Starting a dedicated server hosting company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell dedicated server hosting, or selling dedicated server hosting online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$66.8B
revenue (monthly)
$125K
starting costs
$16.8K
gross margin
83%
time to build
360 days
growth
Word of mouth
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

App Creation Costs

$1,099

$20,099

Software Expenses

$162

$2,894

Advertising & Marketing Costs

$0

$2,500

Website Costs

$13

$215

Training & Education Expenses

$0

$850

Total Startup Costs

$1,274

$33,558

Successful Businesses

Business URL Rank

HETZNER

hetzner.com

8,972

Earnings without investment

serfbux.com

10,507

ServerMANIA

servermania.com

29,979

Byet Internet Services

byet.host

61,539

Onlive Server

onliveserver.com

75,262

Rent Dedicated Server

hostimul.com

82,876

XeonBD

xeonbd.com

99,732

Serverwala: Cheap Dedicated Server

serverwala.org

105,026

Shock Hosting

shockhosting.net

156,736

Tier.Net

tier.net

162,007

Hostry

hostry.com

168,869

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Rewarding work

Starting a dedicated server hosting company can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Traffic to your website

A dedicated server hosting company gives people a reason to visit your website and to keep coming back to you!

No overhead costs

To get your dedicated server hosting company started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!

Cons Description

Crowded Space

Competition is high when it comes to your dedicated server hosting company, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A dedicated server hosting company can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Security Issues

With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.

Isolation

Often times, as a dedicated server hosting company, you typically work alone and do not have much face-to-face interaction with other team members.

Taxes

As a dedicated server hosting company, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.