Business Idea

Start A Web Hosting Service Business

About

Starting a web hosting service business 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

market size
$62.6B
starting costs
$37.6K
gross margin
50%
avg product price
$151
time to build
10 months
growth
Brand Authenticity
business model
Subscriptions
time investment
Full time

About

Starting a web hosting service business 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

market size
$62.6B
starting costs
$37.6K
gross margin
50%
avg product price
$151

 

time to build
10 months
growth
Brand Authenticity
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 business. 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 Businesses 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 business 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 business 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 business 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 business, 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 business, 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.

  • 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.

  • 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.