March 03, 2017
First of all, as you can tell going by the date when we lasted posted; it has been a while since we last updated the HostXNow Blog! Moreover, we are aware that an outdated Blog can look off-putting to our potential customers (we too can get put off if we go to a business website and see they have made no effort to update their blog for quite some time), but that by no means anything is wrong with HostXNow. We have just been so busy providing the very best service possible to all customer's of HostXNow that we have not had the time to update our Blog page for quite some time. The service we provide is primary and things like updating our Blog, are, of course, secondary. Hopefully, this guide will help make up for the lack of updates on our blog, especially for those wanting to increase their income?
Due to the high demand for everyone wanting to have an online presence for their hobby or business nowadays, now is an excellent time to start a web hosting business! The best part is you do not need a great deal of technical computer knowledge to run a hosting business these days at least not when using our Reseller Hosting setup. Many of our competitors started out using our Reseller Hosting plans and now run everything themselves. You may question why we help create competition that could potentially decrease the chance of us gaining new sales ourselves, but we have no problem with this because there is enough room for everyone! Becoming a web hosting provider is not that difficult at all, and the startup costs might not be as high as you think them to be.
The main things you need to run a web hosting business is a reliable Reseller hosting account from a reputable hosting provider, a billing & support ticket system so you can bill your customers and offer support to them. Finally, you will need a way to take payments from your clients. Receiving payments are easy when using WHMCS integration which seamlessly works with popular payment gateways such as PayPal and Stripe (Credit/Debit Cards).
It may also be important to you to use a provider who offers White Labelled hosting, and what this means, is your customers will not see any branding from the provider you use to resell hosting. For example, the nameservers you tell your customers to point their domains to would be something like ns1.anonymousnameservers.com / ns2.anonymousnameservers.com, and so, therefore, your own customers will have no reason to think you are the middlemen (not that this is a bad thing). I say it is not a bad thing because everyone resells somewhere down the line, e.g., a web hosting company who even owns their own hardware uses bandwidth from a data centre. In most cases, it is best to be transparent, but at the same time, you do not have to broadcast to all your customers that you are a Reseller, but again, it does not matter, because as long as you offer an excellent service, then that is what counts.
Usually smaller providers offer far better-personalised support than the bigger providers do, and this is one of the reasons why a customer would not mind choosing you over a larger provider whom no doubt deals more with quantity over quality. In other words, the provider does not usually have the time or staff to help people new to hosting who use a lot of admin time. Big providers like that would rather host customers who know what they are doing, that way the provider can spend less time hiring staff to try to cut their costs down, etc. In short, don't worry about being a Reseller and 9/10 it is usually only temporary. HostXNow started out on a Reseller account just over 7 years ago, and upgraded to VPS and Dedicated Server, and so on. For the last 5 years or so we have been leasing all our own servers directly from world-class data centres. If we can do it, anyone can do it. It just takes much time, dedication, a little money, but more importantly, patience.
It is important to choose a reliable provider, because if you turn it around and you were the customer using this same business setup, and they provided you with a poor service, well then you would not be happy too. So it is vital to only setup a web hosting business if you are serious about it. If you do decide to resell web hosting you need to choose a reliable and reputable provider because if you get it wrong, it will not be so easy to start back up again at a later date. If you had a good reputation and sold your business on favourable terms, then it would not be a problem to start up a new brand in the future. So please think about these things before you setup a web hosting business.
Here is some advice on how much disk space to offer and what to price it at to help make a profit.
Do not go too high or too low, try to have realistic specs and pricing, and see the bigger picture. By that we mean you could have a Reseller account with 5GB disk space and pay around £5/month and think you could only resell 5 x cPanel accounts with 1GB disk space each or 10 x cPanel accounts with 500MB each which you can make a fair bit of profit. Let's say if you resold 5 x cPanel accounts with 1GB disk space each for £4/month which is £20 in total sales, so if you paid £4 for your reseller account but resold 5 x cPanel accounts then that means you have made a profit of £16/month -- not bad! However, that is not all, because not every customer will use 100% of their disk space, and so that allows you to make even more profit! Also, going one step further, you should not just be limited by the real limit of your Reseller account. Because not only can you oversell disk space (resell unused disk space), but know that you can always upgrade plan or even service in the future which would allow you to make much more profit. Because the more you speculate, the more you can accumulate (most things are cheaper when buying in bulk, but just be careful). So rather than price your plans going by the small 5GB disk space, know that as you make a profit, you can increase the storage for your hosting packages when needed. So rather than resell 5 x cPanel accounts with 1GB disk space each or 10 x cPanel accounts with 500MB each, instead, you go with the idea that you have 100GB disk space (even though you do not have the plan yet) and that would allow you to offer more disk space and maximise profit.
Just know that when first starting out you are bound to be a loss for a while or you may make a little profit if you are lucky when reselling using the first examples I gave.
Personally, I would just think 100GB disk space is around £35/month and pay that every month and offer much better specs and disk space, e.g., pay £35/month for 100GB but resell any of the following:
100 x cPanel accounts with 1GB disk space each at £2/month = £200/month and so £200/month - £35/month for the Reseller account = £165/month profit
50 x cPanel accounts with 2GB disk space each at £5/month = £250/month and so £250/month - £35/month for the Reseller account = £215/month profit
And even when you do that, again, not every customer will use 100% of their quota, and so you can resell that disk space and make a profit on that too making that £165/month or £215/month go even higher! Because not every customer will use 100% of their quota, this is why I think anyone paying more for so-called "unlimited disk space" is ridiculous.
There are a lot of other things that have to be taken into account, but that is the general idea regarding how much disk space to offer and how to price your plans. You may need to pay for the support team, pay for additional software, staff, submit information to the government, etc. However, if you are in it for the long-haul, then you can make it work.
Here we will list the different software and services we use to offer the following hosting services:
With the exception of SolusVM which allows our customers to mange their VPS, we make use of all the following to help us run HostXNow:
- A leading web hosting automation platform. Handling signups, provisioning, billing and support.
- The web hosting industry's most reliable, intuitive control panel since 1997.
- Making Linux secure, stable, and profitable for thousands of hosting providers and data centers worldwide.
- Keep kernels secure & end reboots forever with a single command!
- A trusted registrar since 1997 with great prices, exceptional customer service, and 24/7 support.
- Lets you focus on using apps rather than spending time on installing them.
- A remote rsync backup plugin for the famous hosting control panel cPanel.
- A powerful GUI based VPS management system.
- Premium live chat software and help desk software for business.