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How to Make Money with Web Hosting
Posted by Matt Hedges at Jul 29th, 2008 in Domain Registration and Hosting
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.
Below are some of the methods that can help the web hosts to make money.
Extra Ways to Earn Money with a Web Hosting Service
Reselling: Reselling is a fantastic and fairly simple way for a web host to earn extra money without too much effort. The web host first purchases a hosting package for a reasonable amount and then sells it to someone else for a larger fee. Web masters and web hosts make a significant income from this technique. It has single-handedly been known to create riches almost overnight for savvy web masters. It’s not quite as simple as it sounds, however. There are a few things that must be considered. There is a sizeable upfront investment required to start up this side of a web host business. Space must be purchased before it can be sold, and the profit won’t be realized until that space can be resold to a client. The host needs to have ample space on his or her server as well. If a web host has acquired enough bandwidth and server space they can then sell portions of that to clients who will in return pay them on a monthly basis.
Using the original service resellers make their money just like that. The money from the monthly fees is pocketed by the reseller. The advantage to this method is the reseller doesn’t have to go through the trouble of buying the equipment or hiring IT staff. The pay they receive is for simply setting up the accounts of the new customer. Often the reseller purchases space from the original provider at a discount of about 10%. The resellers profit is determined by the amount of space the original server allows and the size of that space.
This is an advantageous position to be in as the reseller does not have to provide for assistance and support in their packages. With the development of this industry, and the heavy competition developing some resellers are beginning to realize the need to offer these services however, in order to remain competitive. Reselling has a low overhead since it can be operated largely from home. All that is needed is the initial investment of origin host space. Some reseller companies grow so fast, however that they end up needing outside office space to contain the business.
Advertisement: The host can also put ads on their free websites provided to clients thereby playing off the traffic they bring in. The disadvantage to the free site hosting is that most of the sites that use them are small business, or personal users that do not generate enough traffic to generate large incomes from the advertising.
Additional Services for Money Making:
Search engine optimization: Web host often find this as a useful technique of earning money. All the clients of the web hosts, who are eager to make their website popular, want the application of all those techniques that can help them serve their purposes. In such a case, web hosts can provide the clients information on search engine optimization. Customers or clients can be provided with top search engines and then charge a fees for submitting their address and to all popular search engine like search engines Google, yahoo etc.
* Website template creation: Established web hosts can make more income by providing clients with affordable prices. These low priced services are like come ons in an exchange for building the reputation of the company. The host offers clients the ability to purchase templates. Since everybody wants to look unique they often grab up the offers. The hosts can also give clients a membership to a large template website with fees to join and earn more money on each sale.
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.
Site Builder tools: If one can provide their clients with website related offers and techniques to build a better website, then customers will always appreciate such offers and would like to obtain them from the web hosts. Web hosts can act as one stop shop for the companies in providing all the necessary kits that they require for developing a website. Templates, font, pre build graphics, and customization etc. can always earn some extra profit for the web hosts.
Note of Caution: Don’t oversell
No matter what method is adopted for web hosting money making, it has to be remembered that there is no overselling. This is such a situation where a web host offers space to large number of clients but ultimately fails to retain the service. Too many clients using limited space can be a dangerous situation where there is a high chance for the entire system to crash along with the business of the web hosts. Too many web hosts cannot simply sustain simultaneously in a single server. The bandwidth and the space of the server have to be judged beforehand. The reputation of a hosting company depends on these factors to a large extent.
Web hosting is a reputable and profitable adventure in making money online. The type of service you will be able to provide relies on the extent of your knowledge and training almost as much as it does the equipment you have access to. It takes time to learn all of the intricate details and is best to start small and allow your business to grow as your knowledge does.
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