Secrets of Running a Successful Hosting Company

manatee123 · 07-31-2005, 05:21 PM

The market is good for new Web hosting companies. According to Forrester Research, there is now “positive — if modest — growth for Web hosting and managed IT services, at both the enterprise and SMB levels.”

The hosting industry is one of the few profitable sectors of the Internet. As such, large corporations such Yahoo are offering Web hosting services. You, too, can join this highly profitable business and reap the financial awards -- but only if you do it right.

To build a successful Web hosting company, I offer the following two time-tested and proven rules: Focus on offering high-quality services in a tiered pricing schedule.

In addition, it is essential an automated infrastructure to create self-sufficient customers. For marketing, it is crucial to maximize intelligent marketing opportunities.

Automation will create a self-sufficient client-base and reduce your expenses down the road. In order to provide the best-possible service, you'll want a minimum of the following processes automated: order forms (for new customer account set up or existing customer updates), billing system, administration system, end-user control panel, and technical support interface.

Order Forms

The front end of your order form should serve an minimum of these four key functions: 1) verify domain information for registration purposes, 2) validate entered results, 3) process the customer's credit card or create an invoice, 4) enter the customer's information into billing database for future use.

The backend of the order form must process the domain registration (if customer needs to register one) and generate the Web hosting account.

Administration System

The administration system is necessary to manage ordered accounts. You may wish to manually add or remove new domains, change passwords, etc.

End-User Control Panel

The end-user control panel is necessary for allowing your customers to manage their accounts. At the very least, customers should be able to set up their own e-mail accounts, view Website statistics, and manage their files.

Billing System

An automated billing system is an absolute must! The billing system should e-mail invoices, charge credit cards, and suspend overdue accounts. The system should also allow the you to issue credit or discounts as needed.

Tech-Support Interface

By technical support interface, I'm not referring to a system that merely generates trouble tickets. An effective tech-support interface automatically generates an FAQ-interface that customers can search before submitting trouble tickets. These interfaces can reduce technical support requests by a factor of 10!
Also, be sure that the company you go with offers the option of taking care of technical support on your behalf but branded with your brand. You can then focus your energy on your core competencies and growing your business.

Maximize intelligent marketing opportunities

You know what platform you want to use, you've figured out what packages to offer, and set up a tiered pricing schedule and automated systems. So how do you get the word out about your new hosting service?
????: NamePros.com http://www.namepros.com/webmaster-tutorials/111531-secrets-of-running-successful-hosting-company.html

Pay per Click

Pay per Click can potentially allow you to reach large numbers of customers. Although you don't pay to list your site, you do pay when a user clicks on your listing and connects to your site. How, then, do you get your site high on the results lists? You must engage in a bidding war over how much you're willing to pay for each person who clicks through to your site. The stakes have recently grown pretty high, so be careful about bidding too high. Just because someone clicks through to your Web hosting site, doesn't mean they'll convert into a new account. Also be sure to select targeted keywords not competing with everyone else for the same keywords. That is a very difficult game to win. Find your niche.

Hosting Directory Sites
????: NamePros.com http://www.namepros.com/showthread.php?t=111531

There are numerous Web sites known as hosting directories -- that attract Web hosting customers. These hosting directories are an excellent place to advertise, but be selective in your placement. Many offer banner placement, spotlights, search enhancements, and other forms of advertisement. As a general rule keep in mind that banner ads are better for creating brand recognition than generating new accounts, so advertise based on your budget, not on your expectation of new clientele.

Leverage Your Current Client Base

If you run an established Web design firm, information portal, or domain registration service, you can immediately begin marketing to your current clients. A simple e-mail to your customer base can instantly generate a large number of accounts.

Offer New Products and Services

Keep in mind, once you acquire a solid customer base, you can consider developing new products and services to keep your customers happy and to generate additional revenue. But always remember: Quality is key!

coolpix · 08-01-2005, 12:05 AM

Thanks for the great info manatee123!

Veolus · 08-01-2005, 01:40 AM

Thanks, as a webhost, this is some really useful information

manatee123 · 08-01-2005, 09:36 AM

Originally Posted by coolpix

Thanks for the great info manatee123!

No problem. Btw, I am quite experienced in the hosting and ISP industry, having been in the business for 10 years. I would like to write followup information or perhaps a follow-up complete article.
????: NamePros.com http://www.namepros.com/showthread.php?t=111531

It would be great to hear from people what areas could be expanded upon or new areas to explore. Please post your thoughts!

Thank you.

domainprince · 08-04-2005, 01:31 AM

Great tutorials for those who wish to start a web hosting biz! Thanks for sharing!

Refrozen · 08-05-2005, 09:22 PM

Hardly a secret now

sitedesignerpro · 08-08-2005, 07:59 PM

good info

hotrod12 · 08-09-2005, 11:17 AM

Great information for people just starting a web hosting business or even for existing ones as well.

manatee123 · 08-09-2005, 07:47 PM

Any other ideas on possible topics for articles? I want to write something that would be useful to people.

Gene · 08-09-2005, 08:04 PM

Originally Posted by manatee123

An automated billing system is an absolute must! The billing system should e-mail invoices, charge credit cards, and suspend overdue accounts. The system should also allow the you to issue credit or discounts as needed.

Wonderful article. Thank you. I'd like to ask you about billing system(s). Is there pre-made software available that handles all you mention above? If so, any recommendations? Thanks again.

Red Eyes Arena · 08-24-2005, 06:14 PM

this article is very useful if i ever want to start a hosting company! thanks for sharing!!!

ZuraX · 08-25-2005, 09:12 PM

Sorry I have to disagree on automated account setup. All this does is bring headaches. Scammers look for automated ones to use stolen credit cards and then to scam or spam.

phpwiz · 08-26-2005, 12:28 AM

ZaraX has a point but even if its not automated u still get scammers and spammers. i love this post thanx for the advise. and Gene i would recommend www.whmautopilot.com (WHM Autopilot) it is a great Automated script and if you are intrested i can give you a reseller link to get it at 15$ a month instead of 20$

.

Tyson

diddie · 09-01-2005, 12:13 AM

good informations, thx

07-31-2005, 05:21 PM	THREAD STARTER #1 (permalink)
manatee123 NamePros Member Join Date: Jul 2005 Posts: 71	Secrets of Running a Successful Hosting Company The market is good for new Web hosting companies. According to Forrester Research, there is now “positive — if modest — growth for Web hosting and managed IT services, at both the enterprise and SMB levels.” The hosting industry is one of the few profitable sectors of the Internet. As such, large corporations such Yahoo are offering Web hosting services. You, too, can join this highly profitable business and reap the financial awards -- but only if you do it right. To build a successful Web hosting company, I offer the following two time-tested and proven rules: Focus on offering high-quality services in a tiered pricing schedule. In addition, it is essential an automated infrastructure to create self-sufficient customers. For marketing, it is crucial to maximize intelligent marketing opportunities. Automation will create a self-sufficient client-base and reduce your expenses down the road. In order to provide the best-possible service, you'll want a minimum of the following processes automated: order forms (for new customer account set up or existing customer updates), billing system, administration system, end-user control panel, and technical support interface. Order Forms The front end of your order form should serve an minimum of these four key functions: 1) verify domain information for registration purposes, 2) validate entered results, 3) process the customer's credit card or create an invoice, 4) enter the customer's information into billing database for future use. The backend of the order form must process the domain registration (if customer needs to register one) and generate the Web hosting account. Administration System The administration system is necessary to manage ordered accounts. You may wish to manually add or remove new domains, change passwords, etc. End-User Control Panel The end-user control panel is necessary for allowing your customers to manage their accounts. At the very least, customers should be able to set up their own e-mail accounts, view Website statistics, and manage their files. Billing System An automated billing system is an absolute must! The billing system should e-mail invoices, charge credit cards, and suspend overdue accounts. The system should also allow the you to issue credit or discounts as needed. Tech-Support Interface By technical support interface, I'm not referring to a system that merely generates trouble tickets. An effective tech-support interface automatically generates an FAQ-interface that customers can search before submitting trouble tickets. These interfaces can reduce technical support requests by a factor of 10! Also, be sure that the company you go with offers the option of taking care of technical support on your behalf but branded with your brand. You can then focus your energy on your core competencies and growing your business. Maximize intelligent marketing opportunities You know what platform you want to use, you've figured out what packages to offer, and set up a tiered pricing schedule and automated systems. So how do you get the word out about your new hosting service? ????: NamePros.com http://www.namepros.com/webmaster-tutorials/111531-secrets-of-running-successful-hosting-company.html Pay per Click Pay per Click can potentially allow you to reach large numbers of customers. Although you don't pay to list your site, you do pay when a user clicks on your listing and connects to your site. How, then, do you get your site high on the results lists? You must engage in a bidding war over how much you're willing to pay for each person who clicks through to your site. The stakes have recently grown pretty high, so be careful about bidding too high. Just because someone clicks through to your Web hosting site, doesn't mean they'll convert into a new account. Also be sure to select targeted keywords not competing with everyone else for the same keywords. That is a very difficult game to win. Find your niche. Hosting Directory Sites ????: NamePros.com http://www.namepros.com/showthread.php?t=111531 There are numerous Web sites known as hosting directories -- that attract Web hosting customers. These hosting directories are an excellent place to advertise, but be selective in your placement. Many offer banner placement, spotlights, search enhancements, and other forms of advertisement. As a general rule keep in mind that banner ads are better for creating brand recognition than generating new accounts, so advertise based on your budget, not on your expectation of new clientele. Leverage Your Current Client Base If you run an established Web design firm, information portal, or domain registration service, you can immediately begin marketing to your current clients. A simple e-mail to your customer base can instantly generate a large number of accounts. Offer New Products and Services Keep in mind, once you acquire a solid customer base, you can consider developing new products and services to keep your customers happy and to generate additional revenue. But always remember: Quality is key! __________________ Earn recurring revenue by reselling the permission-based StreamSend email marketing service. Take a test drive of the StreamSend email marketing service today, and launch your first email marketing campaign in minutes.

08-04-2005, 01:31 AM	#5 (permalink)
domainprince NamePros Regular Join Date: Jul 2005 Posts: 851	Great tutorials for those who wish to start a web hosting biz! Thanks for sharing! __________________ Paid Posting Reviews. Submit A Review. Submit A Service. :lala: Www.MySmartScripts.com Smart Scripts ! Smart Prices ! Find everything you want to know in our mobile phone forums.From Nokia to Samsung, we have it all! Premium Web Directory

08-09-2005, 07:47 PM	THREAD STARTER #9 (permalink)
manatee123 NamePros Member Join Date: Jul 2005 Posts: 71	Any other ideas on possible topics for articles? I want to write something that would be useful to people. __________________ Earn recurring revenue by reselling the permission-based StreamSend email marketing service. Take a test drive of the StreamSend email marketing service today, and launch your first email marketing campaign in minutes.

08-25-2005, 09:12 PM	#12 (permalink)
ZuraX Senior Member Join Date: Apr 2003 Location: Pennsylvania USA Posts: 2,684	Sorry I have to disagree on automated account setup. All this does is bring headaches. Scammers look for automated ones to use stolen credit cards and then to scam or spam. __________________ Been a NP member for 5 or more years? PM me to join the Social Group!

08-26-2005, 12:28 AM	#13 (permalink)
phpwiz NamePros Regular Join Date: Jun 2005 Location: B.C, Canada Posts: 376	ZaraX has a point but even if its not automated u still get scammers and spammers. i love this post thanx for the advise. and Gene i would recommend www.whmautopilot.com (WHM Autopilot) it is a great Automated script and if you are intrested i can give you a reseller link to get it at 15$ a month instead of 20$ . Tyson __________________ :cool: Cheap Turnkey Scripts: Turnkey4Less.com OnlineGames.net

08-01-2005, 12:05 AM	#2 (permalink)
coolpix NamePros Regular Join Date: Jul 2005 Posts: 247	Thanks for the great info manatee123!

08-01-2005, 01:40 AM	#3 (permalink)
Veolus Account Closed Join Date: Dec 2004 Location: Australia Posts: 4,308	Thanks, as a webhost, this is some really useful information

08-05-2005, 09:22 PM	#6 (permalink)
Refrozen Account Suspended Join Date: Jun 2005 Posts: 745	Hardly a secret now

08-08-2005, 07:59 PM	#7 (permalink)
sitedesignerpro NamePros Member Join Date: Jul 2005 Posts: 29	good info

08-09-2005, 11:17 AM	#8 (permalink)
hotrod12 Senior Member Join Date: Jan 2005 Location: USA Posts: 1,149	Great information for people just starting a web hosting business or even for existing ones as well.

08-24-2005, 06:14 PM	#11 (permalink)
Red Eyes Arena NamePros Member Join Date: Aug 2005 Posts: 198	this article is very useful if i ever want to start a hosting company! thanks for sharing!!!

09-01-2005, 12:13 AM	#14 (permalink)
diddie Senior Member Join Date: Aug 2005 Posts: 1,999	good informations, thx __________________ Proxy list: http://theproxi.com 5-6 years old Proxy lists for sale with PR: Prxy.us and iProxylist.com

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