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WisTex

reseller Is selling web hosting worth it?

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With so much competition out there and the issue of dealing with spammers and credit card fraud, is it worth being in the web hosting business? It does provide nice residual income and depending on how you structure it, it could be very profitable. What are your thoughts? Is this a good type of business to be in?

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For most people, starting a web host is really bad for a few reasons, such as;

1. The general public are not tech savvy at all, leading to you having to answer questions that are super basic, like how to install WordPress.

2. A lot of spammers will likely sign up for your service, leading to you spending a lot of your day tracking down which user has been abusing your service.

3. In order to compete with other web hosts, you have two choices; you can advertise your service as "noob" friendly and have to compete with the likes of Hostgator or you have to undercut everyone and likely have to live on below minimum wage.

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Running a profitable hosting business has gotten a lot more difficult lately, as there's so much competition from companies like Go Daddy and Hostgator. You can make some extra money if you provide services like SEO, web design, e-commerce website management and offer hosting as a value added service. But I don't think it's a good idea to start a host on its own.

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I wouldn't say so, unless you're a very popular web hosting service with a lot of audience. You should know that web hosting is a lot cheaper now than it was before many years ago. You can find a domain/web for $5-10 nowadays.

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1 hour ago, Bravosi said:

I wouldn't say so, unless you're a very popular web hosting service with a lot of audience. You should know that web hosting is a lot cheaper now than it was before many years ago. You can find a domain/web for $5-10 nowadays.

As you have said, Bravosi, a person must have some certain popularity to a degree, because otherwise it would be a waste of time, effort and funds. I have a relative who sells cheap domains and website templates, he has quite an audience, and even still says that the income isn't too high. It's more like a passive income for him.

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The best way to make a small fortune selling web hosting is to start with a large one.

If you have the capital and are ready to lose money in the first three years, then go ahead. Web hosting is a super tough niche. It’s tougher if you’re planning to compete with the big dogs.

Just aim to be the big fish in a small pond. You can start by focusing on your own city. When people google  “best web hosting [city name]”, your company should show up as number one.

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