It's a well-known fact that the only people who made any real money during the Gold Rush of 1849 weren't the gold miners but the guys who were selling picks and shovels. The Internet is the Gold Rush of our time and millions of people are trying to strike it rich online - and the first thing these "prospectors" are going to need is a website. So it makes sense that those who are smart enough to provide web space (picks) and bandwidth (shovels) are the ones who are going to make the real money. Here are 7 more reasons why you should start your own web hosting business:
1. Steady Income - many business owners will tell you that it is more expensive to find a new customer than to keep an existing one. Web hosting is a subscription-based business which means that once a customer signs up for your hosting service you will make money automatically each month with no additional investment on your part.
2. No Competition - Yes, that's right. There is a common misconception that the web hosting market is so saturated that it's impossible to make any money. The secret to this business is to THINK LOCAL. Every customer you will every need can be found in your cell phone, your email contact list, your workplace, your neighborhood and your own back yard. The people in your community are the key to running a successful hosting business. Think of it as your own private fishing hole that no one has access to but you.
3. Low Start-up Costs - (Less than $40) - If you're like a lot of people, you don't have a ton of money to start your own web hosting business. Luckily, you can start a reseller web hosting business for less than $40 (wholesaler fee + domain name registration). If you were to take the traditional web hosting approach (and buy your own equipment and software) you would be looking at start-up costs close to $10,000 - not with reseller web hosting!
4. Low Maintenance- Going through a wholesaler means you don't have to worry about maintaining equipment or software. For example, if a web server goes down then that problem is resolved by the wholesaler, not you. What's so cool is that your customers won't know the difference!
5. High Margins- On average, you will spend $25/month (wholesaler fee) to keep your reseller hosting business running. So the earning potential is limited to the number of customers you are comfortable with. Imagine if you had 30 business customers paying you $25/month for web space. That comes out to a net profit of $725 per month ($750 - $25 = $725)! What if you had 50, 100, or 500 customers?
6. No Programming Skills Required- You don't have to be a java developer to start a reseller web hosting business. Any one with basic Windows experience can start and run a reseller web hosting business.
7. Easy Access - You can run your reseller web hosting business from anywhere that has Internet access: the coffee shop, at your "real" job and of course in your own home.
I can tell you from experience that it's very exciting to get an automatic email from PayPal with the subject line:"You have received a subscription payment." What's even more exciting is getting several of those emails in a 24 hour period! Remember, the secret to running a successful web hosting business is to THINK LOCAL. Don't waste your time and money trying to compete against giant web hosting companies - just stay focused on your own private fishing hole (family, friends, co-workers, etc.) and you'll do great. Good luck!
Neill Davidson has over 10 years in the web hosting and design industry. He has taught over 200 courses in computer-based training and has a B.B.A in Management Information Systems. Neill's latest publication, The Reseller Web Hosting Kit is a "how to" guide for anyone interested in starting their own web hosting business. You can visit his website at http://www.ResellerWebHostingKit.com for more information. |
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