Starting A Small Scale Web Hosting Company

Need a money making idea? Here is one for you. How about starting your very own small scale website hosting company? There are probably some questions arising in your mind right now. So let's address them.

Q1: Does this business require a lot of tech savvy?

A website hosting business does not require you to be a guru, but you do have to be comfortable handling the technical aspects of the business. Conveniently, such issues are usually trivial and most people have no problem handling them. For instance, you may be asked to transfer websites or provide basic forms of scripting support. You may also be asked to restore sites that have encountered problems. When you sign up for a reseller hosting account, such information is usually provided by the primary service provider. You can also rely on their support team for solutions when you run out of ideas.

Q2: Is it capital intensive?

A small scale hosting business requires just an initial capital outlay of $20 to $30 a month. That is the amount you pay for the hosting account. You may also need to set aside a few hundred dollars for setting up your website. Your website will be your shop front and should be professional eyeing. If you can't do this on your own, it's better to hire a professional designer to create the site. Your primary job is to acquire users for your hosting business.

Q3: Is it difficult to acquire new users?

That depends on your marketing plan. You should take some time to learn more about Internet Marketing and how to drive targeted traffic internet. You should be familiar with traffic generation techniques such as SEO, article marketing, PPC and others. A simple way to acquire new users is to network with others in hosting communities. These include popular forums and social networking sites such as Facebook.

Q4: How much can I make on a monthly basis with this business?

That depends on your growth rate. The faster you grow, the more money you make. Let's say you decide to charge each user $10 a month for a hosting plan. That's a reasonable price and you shouldn't have any problems acquiring users at this price point. If you acquire 20 users in your first month, that's $200 revenue per month. Next month, you acquire another 20 users. Your income grows to $400 a month. But note that your work rate didn't raise - you are still acquiring users at the rate of 20 users per month. By the end of 12 months, you would have 240 users and your monthly income is now $2400 per month! And that's just the first year. If you stay a few more years in the business, your income can grow to quite a substantial amount.

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