How To Start A Web Hosting Company In 6 Easy Steps

Providing web hosting from a business that is already dedicatedly to offering digital services can do wonders for your business. But if you want to start a web hosting company from scratch, there’s still a lot of room for you to grow.

To sell web hosting services, you need a web hosting reseller. These are companies that already have a suitable IT infrastructure for web hosting. Think of them as wholesalers.

You’re the retailer, who buys a hosting reselling package and offers it to a niche. This is how businesses operate as web hosting companies.

Let’s now get started in making you a successful web hosting business.

Step #1 Choosing A Web Hosting Reseller

The first thing you need to do to sell web hosting services is to purchase the service as a reselling package.

Here is a list of the most reputable and practical web hosting resellers that you can easily start with:

Compare the pricing and terms, and I’m sure you’ll find a suitable option fit for your business model.

Step #2 Finding A Niche

It’s almost impossible to start out as a web hosting company that covers all grounds. There are already big giants that pose unbreakable competition.

The only way to sell web hosting as a start-up is by reselling, and then gradually stepping up to diverse grounds.

And since you’re focusing on reselling, you need to find a niche.

You can either choose a niche with the target market that your existing business already has (if you’re already selling digital services) or by researching niches that popularly go for niche web hosting.

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Since you need to be better at web hosting for your niche than the competition by giant companies, you can either sell hosting as an additional service to a digital marketing service or offer web hosting at extremely competitive prices.

Step #3 Choosing The Type Of Server To Sell

As a web hosting provider, you can sell different types of servers.

As a start-up, you should stick to selling just one type. To select the type of server you sell, research your niche thoroughly and find out what they commonly demand or use.

Server TypeUse
Dedicated ServersUsed by larger clients where a complete server is dedicated to a single client. The most expensive and featureful server.
Dedicated Cloud ServerLimited options for clients when it comes to OS and hardware, however, do provide similar features to a dedicated server at a lower cost and easier scalability opportunities.
Virtual Private Server (VPS)The single server can be partitioned to be used by multiple systems (clients). Offers limited options but is featureful enough to satisfy SMEs. 
Cloud ServerPools in resources from multiple cloud servers to be used by different systems (clients). This is the best type of server for startup businesses. Cheapest option with practical scalability.

Step #4 Creating A Business

Now that you know what you’re selling and have a complete package of reselling the type of server fit for your target market, you need to integrate it into your business.

First off, you need to sell your brand. If you don’t already have it, create a brand name and a brand logo.

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Then, invest some time and money into a website. This is where your clients will purchase hosting services from you. Also, consider buying a domain that is the same as your brand name.

Thirdly, create a competitive pricing plan for the solutions that you have to offer. Your pricing should be low at the start, with a minimal gap of profit between cost and price.

Step #5 Bring In Customer Support

If you’re selling a digital service, customer support is necessary.

The clients to whom you’ll offer hosting services will need regular customer support relating to maintenance, troubleshooting, migration of servers, etc.

Especially when it comes to hosting services, customer support is key to winning clients and creating brand loyalty so that you win against your competition.

So start filling up some seats in your business, hiring customer support staff that is experienced with handling the type of servers you’re selling.

Step #6 Marketing And Finding Web Hosting Leads

Now that your business framework is completed, all that’s left to do is to find clients to purchase your hosting plans.

There are many different ways you can achieve this.

If you’re already an established business selling a digital service, hit up your old clients offering them the package at a discount. Do the same thing with all the new leads you get.

Even if that doesn’t sell your service, it will get the word around of your brand starting to sell hosting services at affordable rates.

If you’re a new business, it’s better to rely on SEO and ads for marketing.

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Facebook or Google ads work best for selling web hosting.

Either way, the key selling point of web hosting will be your website, so make sure it looks professional and reliable.

Conclusion

That’s all you need to do to start a web hosting company without any technical skills or even an office.

Gradually, once you sell hosting services to enough clients, you should work on growing your company to newer lengths.

This would include targeting different niches and selling more types of servers. At this point, you can even hike up your prices a bit to earn better profits.

I hope this guide helps you achieve wonders with your new web hosting company. Interested in more? Check out Hosting vs. Server – What’s the difference?

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