So you have a few potential or existing clients who require web hostings for their websites. Maybe you already been doing freelance web designing. How do you monetize the web hosting accounts you manage for these clients? Should you refer them via affiliate programs and gain commissions, open a reseller account to gain yearly residual income or even setup your own dedicated web hosting server?
In summary here are five ways you can start a web hosting business.
OPTION 1: Get a managed dedicated server
Host your web hosting business on a third-party dedicated server. Outsourcing some or all of your I.T. needs to a web host immediately reduces your hardware expenditures and payroll expenses. You don’t have to own and maintain your hardware or even hire the experts to run it for you in-house.
You spend substantially less and get considerably more from a host — including thousands of employees working around the clock to help you be successful.
Pros: Scalable – your business can grow as you scale your dedicated servers. No employee needed to maintain server(s).
Cons: Cost, maintenance, support.
OPTION 2: Become an affiliate
Become an affiliate to one of the web hosting companies of your choice.
Analogy: You become an agent of another hosting company. You do the marketing for them and brings clients to them. In return, they give you commission.
Pros: This option is free, cost nothing to setup, and the easiest to maintain. You just need to promote a webhosting and get commisions instead. You don’t even need your own website to promote and make money using this option, but having your own website helps a lot.
Cons: You don’t get the yearly residual income like the other 4 options. Another drawback is you are at the mercy of the web hosting company you are promoting. They can kick you anytime they want, no matter how much sales you have brought to them.
OPTION 3: Setup everything yourself
Install and run everything including servers. Maybe start with a server and build up slowly. You can learn about Linux web servers, dynamic DNS etc.
Pros: Will not cost much to start with, and if you have very few clients. You get to keep all the money and earn residual income year after year.
Cons: Will cost more when you get bigger as you need to manage the resources and capital.
OPTION 4: Become a Reseller from One Reseller account
This is a more flexible option than the previous options. You pay one time and resell to unlimited customers. You pay a slight extra than normal web hosting but you get to brand the hosting with your own brand and take payments directly from clients.
Pros: It cost you a little bit more for a reseller account but you get to keep the clients to pay YOU (instead of another hosting company), year after year. Two to three clients of yours on the reseller hosting account is enough to cover your cost. The rest is profit. This option is a lot like buying in bulk, and reselling at retail for huge profit.
Cons: Need to handle your own support system – not so bad if you just have a few clients. We recommend Hostgator if you want to pay one account and resell to unlimited clients. Click the image below to find out about Hostgator reseller benefits.
OPTION 5: Make use of Reseller Discounts
With this option, you get one account for each client and resell at a higher price. You buy each new account for new client as you need. The more accounts you have, the more discount you will get. This option is great if you package with web design for a client. The client don’t need to know the exact cost of the web hosting as you just bill the lump sump which includes the web design or maintenance. ICDsoft is the only company we know that can handle this. The more accounts you get from them, the less you will have to pay for each account. The good thing about this option is you have no initial cost if you get you client offline. You start paying for the hosting only for your first client.
Pros: you get to use their support system thus you concentrate on getting customers, instead of doing tech support.
Cons: You don’t profit as much as Option 4 above but you don’t have the hassle of doing tech support. Click the image below to find out how you can get discounts from reselling ICDsoft hosting accounts.
So now you have no excuse to not make money on the internet. The secret of another low cost, high profit of internet business has been revealed. You can thank us later when you started to make money.