How to Get Rich by Starting Your Own Web Hosting Company

In the early years, there were only few website hosting companies because web hosting was costly. Only big corporations can afford to own personal servers. However, because of the constant changes and development in technology, the establishment of a website hosting firm is now within reach. Thus, creation of websites had become available to everyone. To date, there are more than one billion websites in the web which are hosted by small and big web hosting providers. Undeniably, web hosting is a booming business and more and more people are taking advantage of this opportunity to make money.

What It Takes To Become A Web Host?

Making a fortune with website hosting is not an easy task. It takes planning, hard work, dedication, skills and investment to make a lucrative website hosting company. Moreover, there are things to put in mind before a person decides of becoming a web host.

1. Are you of legal age?

There are a lot of young entrepreneurs under age 21 who are now earning large amount of money because of their online businesses. Michael Dunlop of Retire@21 enumerated top 20 young internet entrepreneurs under 21 which inspires a lot of wannabes. In another list published by Business Insider, one of the nine tech founders who are younger than 35 is a Kenyan who founded a website hosting company named Hypercentuy Technology at the age of 16.

It is such a pleasure to earn money at a very young age however, there are nations which prohibits minors to be involved in a contract with other people and dealing with web hosts is not an excuse for this. To be a legal owner of a website hosting firm, you must be of legal age.

2. How much time are you willing to devote?

In any business, success is a product of passion and devotion. You need to find time to understand the ins and outs of the business. To stay ahead, you must be updated of the latest trends in website hosting so that your company will not be left behind. Before starting a website hosting firm, thorough research and reading reviews of website hosting companies must be executed. Doing your homework about web hosting will already take time.

Furthermore, once you have your website hosting company, it is necessary that the answers to the queries of your customers are given in a timely manner. Because technical glitches are unavoidable, a 24/7 technical support should also be present.

3. How will you attract customers?

The rule of thumb is, in order to become successful in your online business, you need to have an extensive marketing for web presence. Advertising is an essential tool in promoting your business. You can join website hosting forum, pay for display ads, local ads and private banner ads, social media sponsored posts, and so on. Be creative and find cost-effective ways to attract clients.

4. How much will my web hosting service cost?

Low-cost website hosting is now a trend. Most website hosting agencies are now offering their services at a cheaper rate because of the stiff competition in this business. On average, firms are charging $2-4 per month to host a website which may or may not include unlimited storage, data transfer, security software and mobile optimization. Your web hosting price should depend on the quality of service and features you offer.

5. Do I have a professional-looking website?

Of all people, you, as the web host, should know how important it is to have an appealing and eye catching website that has unique and professional features. The appearance of your website will reflect the type of service that you provide. Therefore, if your website is outdated and the web design is identical to a competitor’s website, you might be driving your clients away.

6. How much money should I invest?

If you want to start making money, you need to spend for your website hosting company. You will be paying for various type of advertisements, hire employees to maintain your website and provide technical support to clients. You will also need to invest on bandwidth, power, server, hardware and software and licensing expenses.

What Are the Ways To Make Money From Web Hosting?

1. Reseller Hosting

If you want to start small due to budget restrictions, you have the choice to rent a server from large website hosting companies. It will be the management team of these firms who will look over your server, security measures and software. Reseller hosting allows you to buy a part of the best website hosting companies’ servers which you can divide and resell to your customers.

Resellers are considered as the middle man between a large service provider and a website owner. Through reseller hosting, website hosting services can be provided to customers around the world. The good thing here is, income residual is required since clients who engaged in your hosting services will pay you for years. Therefore, earning is continuous for a period of time. The more clients you have per month, the higher is your generated income. In addition, resellers need not worry about the technical support because it is the large website hosting providers who take care of it. This means you can focus more on ways to market the business.

2. Affiliate Programs

There are over hundreds of thousands of affiliate programs utilized by online merchants to promote their products and services. Joining an affiliate marketing network is another way of gaining profit. A survey finding released by Rakuten Marketing revealed that 90% of advertisers said that affiliate program is vital to their overall marketing technique. Since affiliate marketing is a multi-billion dollar industry, joining an affiliate program can make a lot of money. Several affiliate marketers are even earning five to six figures annually.

In affiliate marketing, a banner ad or text links are provided by hosting affiliate programs to be placed on your website. When visitors click that ad and sign-up to purchase a website hosting service package, you will earn a commission as an affiliate. On average, the best website hosting companies are paying $50-$100 per referral. By placing ads of hosting providers in your website, you can start earning without exerting too much effort.

It is interesting to note that 60% of affiliates are home-based as stated by Sonam Chawla of BloggerIdeas.com and around 3.3% make over $500,000 per year. One of the most notable affiliate marketer is John Chow who is now making a fortune because of online marketing.

3. Dedicated Hosting Service

If you have opted to own a dedicated server over a reseller server, you have a better control of your security, speed and server performance. Which are needed when you are planning to host websites that demand a higher level of bandwidth. Because dedicated hosting is more expensive than reseller hosting, it is more commonly used by websites that are already popular in the market which gaining large traffic.

Dedicated server rents the web server software and internet connecting to a client exclusively. Moreover, web services can be created and advertisements can be offered to customers. It is reliable and there is no need to share with other people. In addition, you will not be charged for the surge in traffic. Also, dedicated server are fast. Online shopping websites and videos that load fast will attract more customers that is why large websites are usually hosted by dedicated servers.

Why Should You Start A Web Hosting Company?

The number of websites created are increasing every year because of its numerous advantages. Since websites need a website hosting provider to be visible in the internet, the figure of market demands for webs hosts is also escalating. With this fact, grabbing this opportunity is a decision that could build your future.

First and foremost, web hosting is a great way to make a passive income. As long as you have clients, you will receive residual income. Moreover, there are other ways of making money through website hosting company. It may cost some money to start but the benefits outweigh the cost if you put your heart and mind into it.

Moreover, having a website hosting firm means having accessibility to your own server and that means free hosting for your websites. It is not a secret that you can also earn by monetizing your website through advertisements, affiliate program and sponsored posts. Therefore, having a website hosting company and free hosting for your websites could help you earn for a living.

Conclusion

In a nutshell, making money through owning a website hosting company is not impossible however, it takes a combination of a lot of factors for a web host to succeed because of the tough competition. In a world where there are over hundreds of thousands of small and large website hosting providers, not to mention established, it will be a challenge for newbies to enter the business and stand out. Nevertheless, if you do not try, you will never know anything. Be brave to take the risk. The good thing is, getting rich through web hosting is not too good to be true because many online entrepreneurs have already succeeded in this industry and are continuously making a fortune.

Are you planning to enter the website hosting industry? Do your homework first and read client based reviews on website hosting companies on CrowdReviews.com to know what’s in and what’s out in this business.