Web Host Reseller Biz and 4HWW?

[Eric]

I would appreciate feedback from anybody knowledgeable about running a web hosting company.

Is it possible to get to the 4 hour work week (or even 8) offering web hosting to local businesses using reseller plans from companies like HostGator or Resellerzoom?

I've got a marketing relationship developing to access local new businesses for the cost of toner and paper. (Blowing in a coupon for the hosting with his mailing.) My thought is to offer hosting and keep the business small enough to not be a headache. Big enough to provide up to $5K in monthly cash flow.

Back of envelope calculations seem to work out. Assuming you're not competing on price and are niching yourself, somehow. The wild card on the expense side looks like tech support. Thus using the reseller plans. Letting them handle the hardware/OS level stuff.

Thoughts?

Thanks,
Eric

[Random Royalty]

I have a reseller account that I set up when I was a graphic designer so I could offer something to my print-based clients. I only have a few paying customers...I ended up giving most of my site slots away to community groups and non-profit projects.

My experience is if you have a good niche product it can work, but it is a fair amount of hands on. For example, if you offer value-added hosting for open-source middleware (like for wikis, blogs, communities of practice...) you can charge a lot more than $30 per month. Typically your clients need support when things don't work properly, so yes, technical support is a big variable. You also have to have credibility in the middleware you are offering....(for example, an educational technologist offering a Moodle e-learning hosting service).

[Eric]

Random Royalty, thank you for the help!

Contemplating this whole muse thing, I realized I need to be focusing more on my strengths. Meeting interesting people being at the top of the list!

For instance, I recently talked with a successful gentleman who has a niche web hosting company. With about 160 businesses as clients. Your experience fits very well with what he's related to me.

We're talking about ways we can work together. Basically, who do I know that can help him and his clients. We'll use simple joint ventures where everyone wins with very little risk or investment.

Doesn't require much of my time. Can be done anywhere. And I don't need to own a web hosting company.

Thanks again,
Eric

[dhabets]

I would appreciate feedback from anybody knowledgeable about running a web hosting company.


It's a 24x7x365 business.

Is it possible to get to the 4 hour work week (or even 8) offering web hosting to local businesses using reseller plans from companies like HostGator or Resellerzoom?


You'd have to delegate a lot and good help costs $, so I would say no.

I've got a marketing relationship developing to access local new businesses for the cost of toner and paper. (Blowing in a coupon for the hosting with his mailing.) My thought is to offer hosting and keep the business small enough to not be a headache. Big enough to provide up to $5K in monthly cash flow.


Unless you have a specific niche you will simply not succeed, the market is saturated and there's too many basement operations offering the world for nothing...

Back of envelope calculations seem to work out. Assuming you're not competing on price and are niching yourself, somehow. The wild card on the expense side looks like tech support. Thus using the reseller plans. Letting them handle the hardware/OS level stuff.


What about the end users? How are you going to support them? what about SLA, TOS, etc?

Thoughts?

Thanks,
Eric

Would have to see that back of the envelope calculation and the niche you intend to target.

Good luck :)

[jezwebb]

Hi Eric

On the face of it, a web hosting reseller business is a possible 4HWW business. However, unlike many businesses web hosting customers require support, and this wrecks your 4HWW ambitions. Unless you can crack providing good quality the 24/7 support that your customers demand, then steer clear of web host reselling.

Regards,

Jeremy, Director
www.searchenginefriendlyhosting.com/