There was a time when the volume of websites was less and a lot of businesses still hadn’t gone online to set up shop on the internet. Things are different now. Websites are an integral part of businesses and nearly everyone is online. It’s not just a .com but also pages on social media that fall into this category.

Let’s look at some basics first about websites – in order to go online, you need to get assistance, namely a web hosting company. These are the people who have the resources to create your customized real estate in the World Wide Web. This is a crucial part of every business..

Just to reiterate, web hosting is, hosting your website on a central server, owned and maintained by other companies.

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Can you make money if you’re a web host?

You sure can! In the internet era, web hosting, well, reliable web hosting is a great business if you fill a pressing need – which is access to customized domain names and a surety that a page can handle sudden surges in traffic.

How does it work?

Three simple steps:

  • Companies or agents or a single person own or rent a server.
  • The server is leased or rented to people who want to host a website(s).
  • They pay a specified monthly rent or lease amount – which is the source of income.

There are 2 ways to operate a web hosting business

  • Regular hosting
  • Reseller hosting

Regular hosting: This is fairly straightforward. You (your web hosting company) are the one-point contact for the person from whom you have bought the server, and the person to whom you rent/lease the server. This model has its own pros and cons, but if you can work around it, then you will be making money almost immediately.

Reseller Hosting: This is the most prominent type of web hosting available today. Reseller hosting is in simpler words a third party alliance. A person or company buys a full or portion of server. He/she now resells this for other website holders, to host their websites in his or her share of server for a profit. The profit is the source of income here, and can be used to keep buying servers and putting them up for sale. In the long run, it’s a great way to make money.

How do you make your hosting business running?

As is the case with most businesses it is about people. A team that is technically strong, is able to troubleshoot, can help a customer handle a server crisis, is able to take care of any issues with the hardware you have provided, is the team that is headed for success. Pricing is everything. This is a highly competitive market, so, along with servers that seem like value for money, the services provided must also help build customer loyalty.

Making a profit

Each model of running a web hosting business has the scope to scale big. In the reseller line for instance – when a company acquires server space from a seller and is now willing to host websites on this server, the money maker is selling server space at a profit. Not only server space, but a package of associated services that will help build on the initial inflow of money.

If regular customers are acquired it is guaranteed income, and with the existing income sources, new and better services can be provided to ensure longevity of association, and thereby, profit.

The next step is of course advertising and marketing. No matter what kind of business you run, advertising your services and making sure it reaches the right people is the most important part of growth. A good marketing strategy alone will ensure that people come knocking to check out what you have to offer. Add to that excellent customer service and you’re set.

Sustaining the business

There is no guarantee that a business will remain “in business” for eternity. When a website is shutting down, web hosting companies are the worst hit. That being said, there are ways around this scenario as well – the obvious answer is finding new customers.

Employing innovative products like hosting temporary websites, leasing out server space for temporary storage services, and a host of ancillary services that seem like a stretch, but will provide much needed money when times are rough. It is at this juncture that networking plays a big hand.

Finally, like all businesses and companies, a great network and the right strategy will propel your company and service to the top. Most web hosts who have been in the business of hosting have ensured that they provide excellent services at competitive prices and a great customer base who rely on them. There is value in traditional business practices. While the kinds of businesses thriving might change, people, their attitudes don’t.