There’s a multitude of web hosting services today as this business is quite profitable and the industry is growing rapidly. Because even a one second delay in website loading speed loses businesses up to 7% in conversions, ensuring the fastest and servers will ensure you get customers. However, you also shouldn’t forget that one-fourth of the total number of websites today is hosted by only four top companies.

This means that despite the seeming simplicity of succeeding in this business, the competition is intense. Therefore, the quality of your servers won’t be enough to succeed in this industry. If you want your own company to bring good profit, you need to take things slow, build a strong brand, and prioritize quality of service, both technical and customer.

How to succeed in the web hosting business

1.     Develop a unique selling proposition (and a brand to go with it)

The most important thing you need to do in order to succeed in the competitive web hosting industry is to make your business stand out. That’s why developing the unique selling proposition (USP) is the first thing you need to do.

Providing fast and secure websites isn’t unique, so what can you offer your clients that will make your hosting company seem special? This can be a unique service package, low prices, special terms, additional customer services, etc.

To develop your USP, you’ll need to study your competitors and offer something they don’t have such as improving the dashboard and making it easier to deploy and manage servers/websites. In the meantime, you should promote this proposition under a distinctive brand so you can start building a loyal customer base from the start.

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2.     Start with reselling

WebHostingMedia is a well-known authority in all hosting-related matters and it advises startup hosting companies to use reseller hosting plans. In essence, this means that you won’t need to buy and set up expensive equipment and hire a team to service it. You’ll be reselling hosting services from a renowned provider instead. This will not only reduce the risks and let you have a ‘test run’ of the market. But you will also get a chance to strengthen your new brand with the authority of the top hosting company behind you.

If it all works out and you build a loyal customer base, you can consider going solo and expanding. You can also pair reselling business with web development and design. This will give you an edge on the market as you’ll be able to offer top-quality hosting to the clients who build websites with your help. Be sure to include website maintenance into the deal.

3.     Ensure you can provide the best customer service

When you start a web hosting business you need to not only determine if your budget can cover the best equipment and technical team to work it. You also need to outline your customer service plan as without it, your company is doomed to fail from the start.

Providing fast, efficient, and overall great customer service through friendly interactions might be the only thing that will make people choose your offer. So, plan out your service call center and social media response team at the same time you design your server room.

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If you want to outsource these services, be sure to research the third-party company you hire thoroughly as they will play a major role in your success or failure.

Don’t forget that the speed and efficiency of your tech service team’s response also matter to your customers. You have to guarantee that any technical issues will be resolved as fast as possible. This means that you need to have technicians and IT experts on site 24/7/365. Same goes for your customer service availability. In order to succeed, be sure you don’t start a web hosting business before you can provide all of this.


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