Web Hosting Firm

A web hosting firm provides a needed service to Internet firms of all sizes – hosting websites in a secure data center. This is a very flexible business – you could provide a completely virtual business without owning any of the hardware yourself or investing hundreds of thousands of dollars in a physical data center.

The Internet is a mesh of networks connected to one another, often with multiple connections through different networks. Websites reside on servers physically located throughout data centers, businesses, and homes. They connect into local networks which connected to the Internet. Servers can be located in a several million dollar secure data center facility with power generators, multiple power lines, multiple data connections, armed guards, fire suppression systems, and controlled environment. Alternatively, a server might be located in someone’s basement. The level of facility required to host the server depends on the needs of businesses.

Many businesses and individuals outsource web hosting to a web hosting provider which takes on the cost of that infrastructure. Fortunately, if you are thinking about setting up your own web hosting business, this large capital investment in infrastructure is already made for you and you have several options to start your business:

  1. Build your own data center. The most costly option and not recommended – with all of the data centers sitting out there with empty space, why not just lease a rack or two for your servers?
  2. Lease rackspace in an existing data center. This option is often referred to as “colocation.” Colocation allows you to physically locate servers you own at an existing data center for hosting. They provide power and Internet, you manage everything else. This option ranges in price depending on the quality and features of the data center and what services you need them to provide.
  3. Lease a dedicated server. This option is one of the most attractive for web hosting companies. A third party data center company sets up a physical server which they own for you to use for your business. You can host multiple websites on one server, so if you lease a dedicated server for $200 per month and sell 100 clients at $10 per month for hosting service, you earn $800 per month ($1000-$200). You manage billing and customer service and the hosting company just provides the physical infrastructure and server.

How do I get started?

You need to find a hosting company to lease a server from. We use Serverbeach.com – they are very affordable and have great service. We have made arrangements with them to offer you $100 off your first month’s hosting fee if you use referral code JHY5W8TR25. They are quick to setup a dedicated server and offer web-based control panels so you can easily setup and manager your customers’ accounts.

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