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Eric
06-07-2007, 06:50 PM
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
07-17-2007, 06:40 PM
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
07-17-2007, 07:22 PM
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