So You Want To Set Up Your Own Hosting Company?


ADX Dungeon Master
Jan 6, 2010
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So You Want To Set Up Your Own Hosting Company?

So you’ve sat down and decided to start offering hosting to others. You already know it’s a saturated market, however you’ve got your usp (unique selling point) all sorted out.

Then you realise there is a myriad of options out there to go for depending on your budget and what profit you would like to make. This article outlines the different options you could go for, whether you are just starting out or you have actually reached critical mass and you are ready to jump into setting up your own datacentre (which isn’t a task for the faint of heart).


Let’s start at the beginning. As you probably already know, you are sharing the server you are on with up to at least 100 other customers. This is fine when you’ve just got a couple of websites, you won’t run into any problems.


Shared accounts aren’t really suitable for having more than one client of your own on the server you are sharing with other customers. This is where reselling comes in.

Basically you have a bigger share of the server from your hosting company, they give you a preferential rate, then you resell that space to your customers ideally at a profit. You will still however be sharing that server with lots of other resellers. So you have to be careful with how much you give to your clients, try to avoid overselling. Overselling is basically cramming as many clients on to your reselling space as you can, hoping that they won’t max out the plan that they are on. It has caught many resellers out in the past and they have lost customers.


So your hosting company is expanding at a nice rate, however you are close to using up all the resources that your reseller account has to offer, now what? Do I keep upping my reseller account, or do I take it to the next stage and move to something like a VPS (Virtual Private Server)? This is one stage down from a dedicated server, which I will go into further detail later on in this article.

Now you have an even bigger slice of the pie, there is now only probably 2 or 3 other VPS accounts on the server, so now you could offer more plans to your potential clients, again avoiding overselling. Of course at this point, your costs are going up, so either you have to start charging your customers more, or you try and cram more customers on the server. Or as already stated you could offer more plans.

Also this is where it gets a little more complicated, you actually now have root access to the operating system on your...

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