How to Make Money with Web Hosting
Monday, July 28th, 2008
The massive business of web hosting is a world-wide endeavor practiced by many companies large and small. There are specific needs in equipment in order to compete in the competitive field of web hosting. Web hosts are not limited to simple service provisions and client web site hosting. They often provide many other ways to make money for its clients. Being the highly competitive business it is they are always looking for more ways to utilize services to make money.
The opportunities are wide-spread for the web host that has the provisions available to create them. These services increase income and create improved relationships with their customers as well.
Just a few of the many opportunities to increase income are:
Tips to Make Money with Web Hosting
Reselling: This is a very popular method of creating extra income that does not require much effort. A web master buys a hosting package at a discount and resells it at a higher price. Sound simple? Both the web master, and the web host makes money on the proposition and everybody is happy. Large amounts of income are created with this method and some web masters make a great deal of money fast with this method. It isn’t quite as easy as it sounds, however. First, there is an initial investment to be made and the only return is if you are successful in reselling the service. Some space is required and that like is provided for a small business isn’t enough. A web master needs to acquire enough space and bandwidth to begin the service. After the acquisition of the space is acquired they can sell it to other users in broken up portions. Each new customer pays them on a monthly basis. The procedure then repeats over and over.
Resellers can make money just like that of the original service provider. The monthly fees of the customers would get into the pocket of the reseller. The reseller won’t have to take the trouble of investing in the equipment or IT staff. They are paid by the customers for setting up the accounts. When a reseller purchases server space from the original service provider, he/ she is offered say ex: 10% discount. Now, the profit of the reseller would be determined by the number of server space in lends and also on the size of the spaces.
The position of the reseller is largely favorable because it does not have to provide support as part of their package. Some, however are beginning to provide support service due to the heavy competition in this area. Another advantage is the size of the company. It can be operated right from your own home eliminating the need for paying on space rental, and even transportation costs to and from a place of business. Some companies grow so fast they end up needing more space and are buying up more space in order to outshine the competition.
Advertisement: Free web hosting allows a web host to earn from advertising. Since this service is rendered free to the clients, the web hosts what to use the websites of the client for advertisement purposes. These kinds of options are limited as only small businesses and beginners opt for free hosting services. Thus making lots of money with this service is logically not possible.
Other Services to Generate Extra Income:
* Optimization: This can be a useful service to provide extra income for a web host. Clients are often unfamiliar with methods used to generate more traffic-but they know they want the traffic. Since they don’t know how to get the traffic a web host can give them information on SEO (search engine optimization). Clients then can be given the top search engines and the host can charge a fee for submitting URLs to the most popular ones. The most often submitted engines are Google, MSN, Yahoo, etc.
Offer website templates: Those web hosts who are established in their fields can increase their monthly income from the profession by providing low price services to the clients. These incomes are more like top ups and can also increase the reputation of the company. The web hosts can offer clients to purchase their website templates. Companies can also provide clients TemplateMonster.Com and earn more per sale basis.
Providing domain names: Providing domain names to clients can also be a good idea of earning extra. Those who haven’t tried this formula should go for it. Domain names with registration transfer of their domain names, and renewals can definitely earn money for the hosting company. Private name label with companies like e Nom, Domain People etc can also help.
* Providing Site Builders: Offering an expansive web creation wizard that is user friendly is a great way to expand a web host’s income. Clients want visually appealing sites that they can create themselves and this service will also lure them to the web host. By acting as a easy access, one stop service and offering all the items a customer needs to build a site they can create a big reputation quickly. Customers these days are very savvy and know what to look for in a good site builder so it must offer all of the common features.
Avoid Overselling:
Regardless which of the methods a host adopts to make more money, it’s wise to realize that overselling is dangerous. Overselling occurs when a host offers too many customers space and then realizes it cannot obtain enough space or bandwidth. This creates overcrowding and many clients using a small space increases the danger of systems crashing and taking down the entire hosting business. A single system cannot hold more than a specific number of hosts. Know what the limits are and do not exceed them. The web hosts reputation will rest on this single issue regardless of how wonderful his offers are otherwise.
Web hosting is often a legitimate and profitable technique of earning money online. The nature and type of service however, depends on the knowledge of the host along with the equipment and programs he/she has access to. It is advisable that a web hot begins with a small business and then process to a large one with time.