Starting a Web Hosting Company
How to Start Your own Web Hosting Company for Less
So you want to start your own web hosting company? No problem. Starting a web hosting company today isn't nearly as tough as starting a web hosting company several years ago. In order to start your own web hosting company you must choose where to start. This how to start a web hosting company guide is designed to help you with starting a web hosting company independent of budget - it covers both inexpensive entry level hosting startups and talks about more complex M&A in the hosting industry.
First, the easiest way to start a web hosting company is to buy a reseller hosting account from an established web host. This will let you resell shared domain hosting and domain services using a control panel that your web host will provide to you as a reseller. With the ability to host multiple domain names on a single account you can take the plan features offered and share them amongst other domain names, letting you start your own web hosting company for as little as $10 a month. This is the first level of starting a web hosting company and is usually the easiest plus the least expensive. For example, you can host unlimited domain names with the HostMonster reseller hosting package - just click here. Another popular reseller web hosting account is the plan offered by HostGator - which allows you to host unlimited websites in a $9.95 per month hosting account. For a list of companies that offer low cost reseller web hosting plans that let you start your own web hosting company, visit our HostIndex.com Reseller Hosting Showcase.
Low Cost Ways to Start a Web Hosting Company
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The second popular way of starting a web hosting company is to buy a dedicated server, install a control panel application, and then resell space on that server to third-parties. For those willing to invest money into starting their own web hosting company, going with a dedicated hosting option is the best choice. You can find a list of high-quality dedicated hosting companies in our HostIndex.com Dedicated Server Showcase. When comparing dedicated server options for starting a web hosting company, you will need to review the available software platforms. Most people starting their own web hosting company choose either Plesk (plesk.com) or cPanel (cpanel.com) as these two are the most popular web hosting company administration tools on the market.
The third way of starting a web hosting company is to seek a private-label hosting solution whereby an existing web hosting company white-labels their hosting platform for you to use and brand. This route to starting a web hosting company is really good if you anticipate a large marketing budget and can drive customers or if you have an existing customer base you want to convert into hosted clients once you are finished starting your web hosting company. The most popular private-label web host is Hostway who offers a popular reseller private label platform.
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The fourth way of starting a web hosting company is simply to purchase an established web hosting company. There are many small hosting businesses that are for sale on the market. Ask a local business broker to find one for you. He or she may know of a web hosting company for sale in your area or one that can have its customer base transferred. In general, web hosting companies sell for 5X EBIDA, or five times cashflow. Companies with annual term hosting products are considered less valuable than monthly hosting customers, so be careful to properly analyze any potential web hosting company purchase.
Of course starting a web hosting company is not just about which technical path you choose. You must remember that starting a web hosting company is no different than starting up any company. Professional services like legal and accounting requirements along with a solid business plan are all prerequisites to a successful hosting venture. Starting a web hosting company is a very personal choice but a good one if you actually enter the lucrative hosting industry. Some people start a web hosting company because they are frustrated with the level of service their existing web host provides. Others will start a hosting company because they want to take advantage of the profits available in this multi-billion dollar industry. Either way, as you can see by the variety of ways of how to start a web hosting company, determining your capital is an important step. You could spend as little as $10 a month in order to get a web hosting company started or all the way up into the millions of dollars to start and market a large hosting business.