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Exploring the Opportunity in Establishing Web Hosting Business

The first thing which most of you get in mind when reading the title of this article is that in order to make money through web hosting you need to own a server and have something to sell. But it’s not about that. You don’t need to own anything. Don’t think about buying a server, setting up a large bandwidth connection.

Hosting companies have taken over the market and it is one of the most profitable businesses at this time. So there is great potential in this area, however, there is also a cut-throat competition.

Right now you are probably viewing the idea of web hosting just as the basis of your website – the means through which you get the content you want to share out there and the basic need which you try to acquire as cheap as possible.

However, hosting is more than that. The new trend which many people start to catch on is called reseller hosting. What does it mean? In simple words what you would do is buy some hosting and then resell it to someone else in order to make a profit. This sounds quite easy, but how does it work?

First of all, you wouldn’t buy your typical hosting plan where you just want to host your own website. Reseller hosting requires lots of server space and a large bandwidth. What you would usually do is a buy a dedicated server and sell portions of its space to several different customers. You can usually buy a dedicated server for somewhere around 30$/month.

So the very first step you need to take is to buy a large hosting plan. Usually, all host providers have these special packs for resellers. If you don’t find the specific web hosting plan right away, contact them and tell them that you would like to purchase a reseller plan.

The second and most important step is to find your clients. The truth is that the network is pretty busy and there are lots of resellers out there but what you could try is to act locally. Try and find companies which need hosting in your city or simply look for websites which are somehow related to yours and talk to them. Tell them what you can offer them and you will be amazed by the results. All you have to do is make sure that your clients are honest, that they don’t host illegal content and that you can rely on their payments.

A final thought would be to compute the way you distribute the resources you own. Try to get enough clients to cover your costs and make a profit, but don’t exceed the limit as you will just crash everyone’s websites and you’ll lose all clients.

As long as you don’t get greedy, but creative, hosting can become more than the basis for your websites, but a source of income.

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