Start A Web Hosting Service - Business Ideas
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
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 |
Case Studies
•
$30K/mo
•
$10K/mo
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.
-
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.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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