DEVTOME.COM HOSTING COSTS HAVE BEGUN TO EXCEED 115$ MONTHLY. THE ADMINISTRATION IS NO LONGER ABLE TO HANDLE THE COST WITHOUT ASSISTANCE DUE TO THE RISING COST. THIS HAS BEEN OCCURRING FOR ALMOST A YEAR, BUT WE HAVE BEEN HANDLING IT FROM OUR OWN POCKETS. HOWEVER, WITH LITERALLY NO DONATIONS FOR THE PAST 2+ YEARS IT HAS DEPLETED THE BUDGET IN SHORT ORDER WITH THE INCREASE IN ACTIVITY ON THE SITE IN THE PAST 6 MONTHS. OUR CPU USAGE HAS BECOME TOO HIGH TO REMAIN ON A REASONABLE COSTING PLAN THAT WE COULD MAINTAIN. IF YOU WOULD LIKE TO SUPPORT THE DEVTOME PROJECT AND KEEP THE SITE UP/ALIVE PLEASE DONATE (EVEN IF ITS A SATOSHI) TO OUR DEVCOIN 1M4PCuMXvpWX6LHPkBEf3LJ2z1boZv4EQa OR OUR BTC WALLET 16eqEcqfw4zHUh2znvMcmRzGVwCn7CJLxR TO ALLOW US TO AFFORD THE HOSTING.

THE DEVCOIN AND DEVTOME PROJECTS ARE BOTH VERY IMPORTANT TO THE COMMUNITY. PLEASE CONTRIBUTE TO ITS FURTHER SUCCESS FOR ANOTHER 5 OR MORE YEARS!

Setup a Web Hosting Business

Setup a Web Hosting Business

For a start I am assuming a complete newbie who are interested in web hosting business but does not know about business or the web hosting industry. For those who are experienced, please feel free to skip some sections and go direct to the sections where you have queries. Or the newbies, I would advise you to read from the start to the end.

Registration of Company

The first step involves choosing a Business or Company structure. There are sole proprietorship, partnership, limited partnership and private limited company. Sole proprietorship and partnership involves unlimited risk on your personal assets. I would advise setting up a limited company or private limited company which will limit your loss to what you have invested. Next is choosing a name for your company. If you have some good friends whom you trust and can work with, it is also ok to register as limited partnership. Once registered, you are in for the second step.

Setting up of Company

As a web hosting company, the first thing you will need is your own domain. Domain names are cheap costing less than $10/year. For email, I would suggest an email system that is separated from the hosting you are selling your customers. This is to allow communications should your email servers go down. At the moment, http://domain.live.com still offers free email hosting with generous accounts quota. This will be good for a start. The next will be getting a web hosting package. Do research carefully in sites such as http://www.webhostingtalk.com . Get an affordable and reliable reseller hosting.

Setting up of Web Hosting

There are two major kinds of reseller schemes, the first is the affiliate scheme while the second involves buying a reseller package from the web hosting company and then reselling the web hosting space with the support and billing done by you. I would advise against affiliate schemes, there are so many affiliate schemes that I doubt you can earn anything from it no matter how hard you try. There is far too much competition in the affiliate arena. What I would suggest is getting a reseller package which allows separate Control-panel logins so that users themselves can control their own web sites without going through you. This will save you a lot of support time and efforts.

Once you have a web hosting space, the next important thing is the design of your web hosting business site. For a start I would suggest Wordpress with a nice theme that is easy to configure. Wordpress is extremely common and hiring someone to configure your theme to your liking will not be costly. One important thing as with any popular blog or cms program is that you need to constantly patch and update your Wordpress and to secure it. You can estimate your revenues and expenses to come out with some hosting plans. Do check around and see how much your local hosting companies are selling their packages, try to follow something similar maybe with a slight discount as you are new. Do not try to compete against the giants which have millions of accounts and are selling unlimited everything at pennies. Localize your web hosting business so that you serve your local area as this is easiest to gain trust and to sell at a premium as the local folks can approach you directly. Use auto payment software so as to relieve the support burden. You need to be able to cater for 6-12 months without income, so the lessening of overheads is of extreme importance.

Promotion of Web Hosting

Once your web site is setup and ready to go, print flyers and distribute to your local community and businesses. Ask your friends for referrals. Try to get the entire local area to be under your web hosting. This is the cheapest and most effective methods. Other methods like using Google Adwords may be effective, but these are costly and are normally for larger companies and not a startup. Ensure that your support is top notch and regularly communicate with your customers. Next build up a good relationship with your customers allow for WOM promotion or Word of Mouth promotion which is far more effective than any other promotion. This is also the time when you gain experiences on customers’ problems and feedback and how to operate a web hosting company.

Expansion to Dedicated Hosting

If you have enough customers, the next step will be to get a dedicated web hosting service. Once again look out for http://www.webhostingtalk.com to determine the best at the budget that you can pay. Initially do get a freelancer or the dedicated hosting company to do semi management. Try to do some server management yourself. Once you are familiar with the security and technical aspect, you can convert to unmanaged dedicated hosting which will definitely save you a lot of money. This is how you grow your company. Grow to a few dedicated servers first before you consider the next step.

Owning your Own Equipment

The next step is tough, when you have regular and large enough income, you may consider starting your own rack, this is known as collocation, meaning you take care of the hardware maintenance instead of just the server management. You will also need to register for your own IPs as well as do the BGP peering. This is the major transition from being just a reseller selling from others’ dedicated servers to using your own equipment and servers. You need to consider the configuration or routers and core switches which can be outsourced, also the hardware providers such as servers. Once all these are done, prepare for a migration of all your domains to your own IPs and servers. Do not hurry your customers, do it slowly and gradually. For a start you may be paying both party, the old dedicated hosting providers and the new collocation provider. But to keep customers happy, it has to be gradual and systematic. Once migrated, you are a full fledged web hosting company with your own IPs, hardware and network! Congratulations!

Business


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