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4 Steps To Starting Your Own Hosting Business

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By Author: Ali Bin Rashid
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Starting your own hosting business is one of those things that looks so simple, you wonder why everyone isn’t doing it. While there is plenty of competition, there’s plenty of room to grow. Starting your own hosting business can be cheap, easy, and safe. Since every company, and lots of individuals, need their own websites, providing hosting services can generate significant returns.

If you’re a company that deals with IT infrastructure or web design, adding a hosting service to your existing platform can bring in new revenue and customers to add sustainable growth to your business. A hosting company can bring in new revenue streams and products to offer upcoming clients if you’re just getting started.

But why bother starting your own hosting business when your plate is already full and your business is running fine?

3 Reasons to start a Hosting Business

Here are some best reasons to start offering hosting services to customers:

1. It’s Easy
Really, the web hosting provider is doing most of the legwork. They handle the technical difficulties that scare most people away from ...
... the industry and keep services running smoothly. All you have to do is keep your individual customers happy and supply the correct hosting solutions for them and their organization. Once it’s running, most websites tend to keep running without much effort or expertise.

2. Additional Revenue
Starting a hosting business can put extra padding in your pockets without losing your day job or adding unreasonable amounts of work. Apart from the initial setup and registering new customers, you can simply watch your bank account grow. An overhead price that covers your costs and brings in decent cash flow keeps costs and prices straightforward for you and your customers.

3. Great Upsell for Digital Firms
If you already run a digital business, especially web design, then throwing hosting into your package makes your service more “all-inclusive.” This could give you the edge you need over competitors and can make you a bigger and stronger organization. By offering hosting to your customers directly on your own platforms, or without having to manage separate users on separate hosting providers, you simplify things like account management and software solutions that must be installed on customer machines.

To top it all off, it’s easier than you think to get started. In fact, you can have your own hosting business up and running after only 5 simple steps.

How to Start Your Hosting Business in Four Easy Steps

1. Research Competitors
Next, you want to separate yourself even more from other hosting companies. Ideally, you’ll want your offering to be so unique that you’ll have no competition… but that’s rare. Even if you’re specializing in your market, you’ll still have more than a few competitors.

This will give you an advantage when providing new services, looking for clients, and identifying marketing techniques and product offerings. Because the hosting industry is fiercely competitive, it’s important to collect as much information and data as possible to separate yourself from the crowd.

2. Choose Your Server Type
Assuming you’re reselling server space from a hosting company like Sky Host UAE, as opposed to building your own server in your garage, you still have a few different options to choose from.

Dedicated Server
As the name suggests, a dedicated server is a server dedicated to one client. While the features are extensive, it’s the most expensive type of server. A single machine provides more robust features for larger clients, including the ability to have more security or HIPAA Compliant Hosting.

Dedicated Cloud Server
A dedicated cloud server is the best tool because you don’t need to worry about scaling your server or infrastructure — even with an unexpected spike in traffic, performance remains consistent. While not as expensive as dedicated hosting, dedicated cloud hosting falls somewhere within the mid-range, in terms of pricing.
A Virtual Private Server is a single server (cloud or otherwise) that’s partitioned to suit multiple systems. While space is limited, it’s easily the cheapest option and a good place to start for beginners in the hosting business. This will allow you to host multiple clients on one system to keep costs slow. But features may be more limited than other sorts of servers.

Cloud Server
Cloud Servers, or public cloud hosting, is a highly available and scalable cloud solution that pools resources from across multiple servers using virtualization. This is optimal for websites with unpredictable traffic, fast-growing startups, or small eCommerce portals.

There is no one “best” server type. Instead, you’ll want to choose the one that fits together with your niche and business model.

It’s best to stay away from shared hosting for your infrastructure, as it won’t provide the performance, security, or scalability you’ll need to grow.

3. Create a Business Model
Now let’s get into the “business” part of the hosting business. You’ll need to fine-tune the detail of your niche marketing also as invent your brand.

In this stage, you need to finalize plans for the following:

This includes your company name, logo, and tagline. Remember which domain names are available since you’ll inevitably need to build a company website. Your name should be memorable and easy to seek out.

Pricing Plan
Hammer out the details of your pricing plans to seek out that sweet spot between how much the hosting infrastructure costs you, and how much your clients are willing to buy your services. This can also play into your niche marketing if you’re trying to undercut the cost of your competitors.

Website Design
As with all digital industries, your web hosting company’s website is its main storefront, so spare no expense in making it top-notch. The quality of your website can reflect the quality of your services, so make strides to make it the best it can be.

4. Launch Customer Service and Support
Customer service and support are optional in theory, but actually, it’s so important that it’s practically a necessity. Consider handling customer service and support as a part of your hosting business.

In the web hosting business, a part of your appeal to potential clients is that they don’t need to worry about technical concerns. Even for hardware engineers, these tidbits can get frustrating, so you can imagine the anxiety it causes the public. Clients believe you to stay their websites and services up and running without a hitch.

If you aren’t able to provide this level of customer satisfaction, clients may prefer to host their websites elsewhere.

Customer service should be a top priority for your new hosting business. That’s why we here at Sky Host UAE invest such a lot into our Support Team. Our customer support is what endears us to our clients and keeps them loyal.

Features like our 59 Second Guarantee and 24/7 access not only set us apart from our competitors but also turn what could be a negative customer experience into one of our company’s greatest strengths.

When you are hosting your infrastructure with us, your clients gain the advantages of our support programs, and it can take some of the load off your back within the process!

You’re Ready to Resell Hosting
Now that you simply know the 4 steps for forming your own hosting company, you can get started today! You have researched the competition, selected servers, and defined pricing plans, and understand the need for customer service, so you can start reselling web hosting.

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