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Best Way to Start a Website Hosting Service?

Kwirl writes "Lets say that I wanted to start a small business endeavor, namely reselling my server space and offering pre-built websites. What resources would I need to start something like this on my own? What hosting service would best suit those needs? What would be the best way to manage a subdomain-level service that provided a basic forum, registration, a web site and some controlled administrative access for my friends so they couldn't easily terrorize each other? I'm curious to know if I could start something like this on my own, and without much more than just my own server space, time, and creativity. I'm not looking to make a living out of this, its mostly just a way for me to more efficiently manage having several friends each wanting me to built or run a web site for them, and perhaps make some small residual income if a market exists. The Slashdot community represents such a broad swath of experience and expertise that I'd like to know how you would approach a project of this nature."

15 of 164 comments (clear)

  1. Re:Plesk by paitre · · Score: 4, Interesting

    Run far, far away from Plesk.

    It might simplify SOME things, but it sure as hell makes other things more difficult.

  2. Here's what I do by Anonymous Coward · · Score: 4, Interesting

    I run a gridserver account at Media Temple, $20/mo or $200/yr. Set up websites with 1-click apps like Drupal, Joomla, Wordpress or any other easy to use free PHP CMS. Wordpress is easy to modify and has a very large range of plugins and templates to work from. You can set up webmail access on MT servers as well as FTP and SSH and permissions for additional user access to your main server account if need be. Many other Hosting Companies have similar systems available or more. I have over 10 webpages on my server account and am barely scratching the resources so far.

    If I make one webpage for a few hundred dollars, it pays my hosting for the year. Until I use 1/2 my resources, I have no need to upgrade so far.

  3. Re:CPanel by Enleth · · Score: 2, Interesting

    DO NOT use cPanel. Never ever, please!

    I've never seen a wep application with such a horribly contorted, uncomfortable, unwieldy and annoying interface. It's an abomination thrown in the face of UI and usability desingers and knowledgeable admins forced to use it to manage shared hosting accounts under their administration. It lacks any kind of consistency and logic and even encourages making the things worse by not enfocing any of those on the plugins written by the companies that use this bastard child of an administration panel.

    Save a few poor people their grief and don't use cPanel,

    --
    This is Slashdot. Common sense is futile. You will be modded down.
  4. Billing is the important part by houghi · · Score: 2, Interesting

    I know somebody who started with this a few years ago. When I spoke to him he said the easy part was the technical stuff. The hard part was the administration and actualy getting the money from people.
    Then there was the moment he was accepting credit cards and he ended up paying the fraud that went on.

    So see that your administration and bookkeeping skills are top

    --
    Don't fight for your country, if your country does not fight for you.
  5. Re:Plesk by Anonymous Coward · · Score: 3, Interesting

    The part of web hosting that people think they have down is not the relevant part. Making a server run smoothly and securely on the big bad internet is an arduous task. Yes, you can probably do it, but it's so much work that nobody can afford it, unless you automate the heck out of it and distribute the cost over many identical servers, and that would require going big-scale. A small shop can never amortize the work that has to go into a single server. The necessity to scale up is what makes web hosting complicated: With more customers you're bound to get all kinds of problems which have nothing at all to do with having an internet connected computer running Apache somewhere. You can't break-even with just your friends, unless they themselves know what they're doing and are willing to pay more than an established company would ask, so you're going to have strangers as customers. Sometimes strangers don't pay. Sometimes strangers get you blacklisted. Sometimes strangers want support in the middle of the night. All of them want five-nines reliability for cents a day.

  6. Hosting as a bonus by Killshot · · Score: 2, Interesting

    The price of storage and bandwidth is so cheap for the big guys that it is hard to compete as a small host. I make an ok living by selling development and design service (custom premium price stuff rather than cheap pre-made) then the hosting is tacked on as an additional fee.. say an extra $50 - $100 per year.

    I have used both Plesk and Cpanel, they both suck, but they also serve their purpose.

  7. Reseller packages by Anonymous Coward · · Score: 3, Interesting

    How about avoiding the mess that is hosting your own server and using one of the many reseller packages that are out there.

    Yes, they might be expensive and yes you might not have total control over many things but you:

    1) don't have the hassle for security and uptime (if it goes down you complain to the host).
    2) many reseller packages have software that automate billing and registration.
    3) are usually "unlimited" so you can host many sites for your friends at little to no cost (depending on volume of sites registered.

    I do it and I find it to be a pretty good way of hosting for friends and family for less than $50 a month.

  8. GoDaddy Premium Hosting Account by MadMorf · · Score: 3, Interesting

    Cost to you, about $15 per month.

    Depending on how many friends, charge them $3 to $5 per month...

    Did this for myself last year, to give myself a big web sandbox to play around in...

    Money well spent...

    Disclosure: No, I don't own GoDaddy, but I am a satisfied customer.

  9. DONT start a hosting service unless by unity100 · · Score: 3, Interesting

    you do it local, and bring it bundled with website design and development. the web hosting field is rather overcrowded, and big companies are offering ridiculous (and unrealistic) amounts of resources to catch clients. and they succeed. dont count on adwords. adwords's roi is sucking tit since 2004. big corps are paying ridiculous bids for web hosting keywords and its impossible to compete with them. its google's bad game. in order to make more money they increased the weight of bid in ad placement and decreased weight of ad quality, clickthrough rate. result has been disaster for small businesses that have high competition in their field.

    by going local you can still do good business. many people need reliable and cheap all in one bundles of web design, domain registration and hosting.

    get a linux box, apache, php, mysql, get cPanel on top of it. that is the most widespread used setup. when we take on a new customer its very high chance that they already know how to use a cPanel site control panel. DONT ever think of getting plesk, it has a very shitty and confusing user interface.

  10. Re:Plesk by oliderid · · Score: 2, Interesting

    You simply aren't going to be able to compete with a $4.00/month multi-gigabyte hosting plan of which there are several. So don't try. Might as well try to open an independant drug store next to walmart. Go the other way, find a niche that's NOT served by those guys and go for that. Go after the people who need something unique and specialize in it. So true

    Being a web developer, I pay more just to have the privilege to get a phone number.Most of these big hosting companies provide very poor technical support. If you label yourself as a hosting company, with personalized contact (name, phone number, email address, etc.) I'm your client.

    Something else:
    • Some "trendy" languages like Rail and to some extend Python lack aren't particularly well supported by most hosting companies.
    • Focus on CMS like Drupal, Joomla, typo3 and all these stuffs and try to find the extra valuable little service (preinstallation or I don't know).
    • Provide presintalled Framework like CakePHP
    • And so on...
    Basically you should select a target group. Like web developers, then ask them what they need.Most would accept to pay more than $4 (a lot more), especially professional. I would certainly pay more just to get your phone number and being able to call you once a problem occured. But the biggest weakness would be to look like an amateur...If you can't proove me that you've got backup, raids, redundant hardware, redudant internet connection, etc. We won't do business. Otherwise I could do exactly the same in my office with cheap hardware.
  11. Most of these responses are from losers and fools by Anonymous Coward · · Score: 5, Interesting

    I am not going to tell you any details about how I've done it or with whom, etc.

    I will say I am 75 years old, never took a course in any computer program, use Frontpage (oh the humanity! - but it does the job) most of the time, Photoshop, a good text editor (I like Alleycode) plus some Joomla, WordPress and a very good little shopping cart. I seek out and intently use various forums. I have one modest sized dedicated managed server based at a resource that gives great tech support, and another shared server account (likewise). I charge $240 per year prepaid (refund of unused portion anytime) and reasonable prices for site building.

    I have clients in 7 countries. I'm not getting rich but it sure beats Social Security. I have a very satisfying retention rate; some clients are with me now for more than ten years.

    How do I do this in the face of all the negatives, real and imagined above?

    I give very serious personal service. My home phone is on my business cards.

    I regularly study and monitor every client's web sites (some have as many as five sites) very carefully and am proactive in alerting them to issues that affect performance and value. I watch their traffic and the email flow and take action when I see a problem.

    I deal only with the owner of the business or the top executive of the organization (I have a number of NGOs, some of them famous).

    I avoid making presentations to potential clients whom I recognize early on as people who know the price of everything but the value of nothing. You can tell who they are because they only want to know the price, not discuss what their needs are or how my services will fulfill them. Let the discounters have them.

    Based on years of experience, I never accept creative people of any kind as clients. That means, no writers, painters, performers, photographers, etc. - they are unteachable and surprisingly close-minded. Give me an inquiring, curious and engaqed business person any day.

    When I screw up, I make sincere amends that build trust and loyalty. For example, when I failed to prevent an unintended domain expiration, I worked hard at recovery, got back the name for my client and gave him a free year of registration and hosting. He's been with me now for 6 years.

    I never speak with anyone without giving them a business card. During a visit to any store or business or any casual encounter, I hand out a card. I give a free year of hosting to any existing client who sends me a new client.

    In other words, bottom line, I work at getting customers and I work even harder at keeping them.

  12. Re:Most of these responses are from losers and foo by TheRaven64 · · Score: 2, Interesting
    Your post starts like a troll, but you make some very good points. The best advice for starting a new business of any kind can be summed up in this sentence:

    Imagine you are one of your potential customers, and then provide whatever it is you would want. My current hosting company is not quite the cheapest (although they are very competitive), but their support is first rate. I have the IM address for the owner, and if anything goes wrong he is there ready to fix it. They had a few instances of downtime in the first couple of years I was with them, and for each instance they gave me a month's free service. They've also given me very good service for problems beyond their control (replacing a hard drive for free when the manufacturer of the server refused to honour the warranty, for example).

    I looked at switching about a year ago, and gave them some of the quotes I found. They came back with a slightly higher one than the ones I'd found, but which I accepted because I knew that my problems quickly became their problems and had no such information about their competitors. I'm happy to pay a premium for

    Some more concrete advice:

    • Make it easy to switch away from your service. If a customer feels that they can leave at any time, they will be happier to stay.
    • Provide personal contact details in whatever form your customers prefer to use. This may be telephone, email, IM, or some combination of the above. Make sure that they know that these are answered.
    • If your customers aren't using as much of the service they as they are paying for, suggest that they switch to one of your cheaper plans, with the option of upgrading later - when they do want to upgrade, they will know that you are giving them a fair price and trust you.
    • As the parent poster said, ignore customers who know the price of everything and the value of nothing. The bottom segment of any large market is very competitive and only the largest companies can survive there. Look for customers who know that you aren't the cheapest, but are willing to pay for the extra services you provide.
    --
    I am TheRaven on Soylent News
  13. Re:How to succeed in 10 easy steps by ceejayoz · · Score: 2, Interesting

    Slicehost.com is pretty much that on a larger scale.

  14. I think maybe I didn't ask the right question by Kwirl · · Score: 2, Interesting

    My apologies, let me attempt to restate my question.

    Let's say I get www.myname.com. That site then becomes a basic directory of sites and games within a given genre. One of the sites that I list then comes to me and says, I would like to sign up and use customer1.myname.com as my site.

    If i wanted to give them a basic index page with a subdirectory, provide a forum, photo gallery, their own updatable news/info page, etc.

    I'm not talking so much about web hosting as pre-built packages to allow them their own site within my existing one.

  15. It can be done, but... by PuddleBoy · · Score: 2, Interesting
    Have no illusions of it being endless fun.

    I have done this for about 10 years now, and the *only* reasons I got into it and stayed with it are;

    1) I was already doing websites for friends and a couple of clients. I had already had a job being responsible for maintaining someone else's servers. ie there was not a huge learning curve.

    2) The company I worked for made the decision to change hardware and software platforms, and sold me their existing gear for pennies. ie no big upfront costs.

    3) I now work for a telephone company and can get a circuit to my home for a very reasonable rate. ie low ongoing costs.

    In conclusion, unless you have experience, the resources to put together a small server farm, and your ongoing costs can be easily covered (even if some clients leave you), don't do it yourself.