Web hosting is an ever growing industry and, each day, numerous companies spring up trying to make it in this competitive field. Of these many attempts, very few last long enough to become profitable due to a variety of reasons such as poor planning, insufficient capital, unexpected circumstances etc. This article should serve as an effective guideline to person seeking to venture into this industry from people who’ve actually done it themselves!
Firstly, you need to know how you will provide the service. Will you run your own servers? Will you lease servers from a larger company? These are some of the questions you need to ask yourself before you begin. Running your own servers is quite expensive and usually only turns out profitable in larger companies. The best bet for a new company, with a small budget, is to purchase a “reseller plan” from the many large companies that offer them.
Reseller plans work like this. You pay a monthly fee (usually) in return for a certain allotted amount of disk space and bandwidth which you can then “resell” in smaller amounts to your own clients. They will provide you with a Control Panel from which you can add accounts for your new clients and adjust their features as necessary. You must plan carefully, beforehand, and ensure that you can make a profit on the resale of the service you lease.