Start A Web Hosting Service - Business Ideas

Updated: September 15th, 2022
Start A Web Hosting Service

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.

White label web hosting or reseller hosting is the ability to re-sell another hosting company’s servers. The hosting service provider allows a white label reseller to take their platform and add their branding to offer the service to their customers.

A white label hosting reseller licenses existing technology, rebrands it to match the company’s logo and colors, and offers the service to their clients.

Starting a web hosting service requires a great deal of effort, dedication, and most importantly passion.

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

Key Stats

starting costs
$30.5K
gross margin
50%
avg product price
$151
time to build
300 days
growth
Pay Per Click Advertising
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

App Creation Costs

$1,000

$20,000

Software Expenses

$150

$2,794

Advertising & Marketing Costs

$0

$3,050

Total Startup Costs

$7,124

$60,811

Successful Businesses

Business URL Rank

One.com Web hosting  -  Domain • Hosting • E-mail  

one.com

1,895

Free Templates

template.net

1,961

EarthLink

earthlink.net

4,931

Private Email

privateemail.com

8,145

HostMonster

hostmonster.com

8,940

HostingRaja India

hostingraja.in

10,044

Afrihost

afrihost.com

11,225

HostAdvice

hostadvice.com

17,427

Host Gator

hostgator.in

17,741

WebRevenue

webrevenue.io

17,841

Free and open-source eCommerce platform. ASP.NET based shopping cart.

nopcommerce.com

17,897

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.

Meaningful business connections

You never know who you will meet as a web hosting service . This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Web Hosting Service es have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Unlimited income potential

With starting a web hosting service there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Cons Description

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 web hosting service 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.

Low margins

The gross margins for your web hosting service are typically around 50%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the web hosting service , employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a web hosting service , 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.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 2

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.