In my last two posts, I talked about two options you could choose from when deciding to start your own Webhosting business. You could either start off as a Reseller, or go for your own VPS. This week I’ll talk about a third option, getting your very own Dedicated Server(s).
Ok. Last week we talked about the advantages/disadvantages of becoming a Reseller. Now lets look at another option: Going for a VPS.
If your planning on getting into the Webhosting industry in a small way, this is something your going to be asking yourself. You could start off by setting up individual shared hosting accounts for each of the sites you plan to host, but handling 100 individual hosting accounts is definitely going to have you pulling your hair out by the end of the day, let alone a week!
Lets take a look at some of the points you should keep in mind before choosing.
Every other day, a new web-host joins the race. The numbers are kept in control, only by the fact that there are others who quit, or who are acquired by another company/person.
New hosts find it harder to succeed, given the monetary investments and expertize it takes to succeed. The most lucrative part of Hosting business is the repetitive nature of the income.
Add to it, the additional/related services that can be rendered, which gives more profit margins. But the problem is that the market is highly competitive, and even the big players find it difficult to keep up with the budding hosts.
That implies, smaller players have the advantage – The advantage of being small.