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jayc89

Starting up as a host...

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Hey guys, I'm thinking of starting up as a webhost, these are the packages I have come up with so far;

 

Home

Webspace; 1.5 GB

Bandwidth: 20 GB

FTP Accounts: 5

Email Accounts: 400

MySQL Accounts: 1

£2.99 a month

 

Business

Webspace; 4 GB

Bandwidth: 40 GB

FTP Accounts: 10

Email Accounts: 1,000

MySQL Accounts: 5

£5.99 a month

 

Professional

Webspace; 8 GB

Bandwidth: 100 GB

FTP Accounts: 75

Email Accounts: 1,500

MySQL Accounts: 10

SSH Access

£9.99 a month

 

Expert

Webspace; 20 GB

Bandwidth: 200 GB

FTP Accounts: 100

Email Accounts: 3,000

MySQL Accounts: 20

SSH Access

£14.99 a month

 

Ultimate

Webspace; 500 GB

Bandwidth: 1000 GB

FTP Accounts: 500

Email Accounts: 5,000

MySQL Accounts: 50

SSH Access

£19.99 a month

 

All packages come with PHP, Perl, and 99% uptime guaranteed, with all support queries answered within 2 hours. We also offer real time account set up and you can cancel your package at any time! Do these prices sound fair to you? And would anyone be interested if I was to go ahead with this idea?

 

All questions and comments welcome :rolleyes:

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I agree with you there that is a definite oversell with the amount your offering there.

 

500GB for £19.99 a month... I know it's rarely gonna happen but surely one of these alone, is probably more than the total your getting for your reseller account, which reseller are you with out of interest?

 

I would recommend setting your spec's lower and maybe alter your pricing, have you seen what the competition is doing? How are you going to market yourself?

 

DK.

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I agree with you there that is a definite oversell with the amount your offering there.

 

500GB for £19.99 a month... I know it's rarely gonna happen but surely one of these alone, is probably more than the total your getting for your reseller account, which reseller are you with out of interest?

 

I would recommend setting your spec's lower and maybe alter your pricing, have you seen what the competition is doing? How are you going to market yourself?

 

DK.

 

After looking around my prices are lower then the competition, but thats always a good thing ;) Although I tend to agree they might be "too" low. Spec of packages is not a concern, as I have access to quite a large amount of resource for not much of an overhead.

 

How does £4.99, £9.99, £14.99, £19.99, £29.99 - at the end of the day I'm not looking to rip people off, and as long as I am at least breaking even I am happy...

 

My initial thoughts where to offer a reduced price to my design clients to start building a client base. Once this client base has built up, and word of mouth has spread I will gradually progress though from local hosting, to national. As said before I'm not looking to rip people off just make a little extra every month...

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I see your business logic jayc89. You're right, competition is always good but it could bite you in the backside later on? If you start out at rock bottom prices you really have nowhere to go if you wanted to be more "competitive" in the future, at least with pricing.

 

Personally I'd focus on offering quality rather than quantity, and let your client base build up on your reputation. The better hosting clients are usually happy to pay the right price for the right product. Reading the various hosting forums you do tend to find that people are constantly switching between the budget hosts for various reasons, which means more "churn" (turnover of customers), and that can affect your bottom line for breaking even. There's a reason why the really good lesser known hosts are successful because their customer stay longer and the business benefits by, more or less, guaranteed revenue.

 

Budget hosts tend to have high numbers of customers which in turn leads to higher support costs, and if you're not brining in enough revenue you'll soon start running at a loss unless you have enough customers to cover your overheads.

 

Offering design clients a "reduced rate" is a cool move, though the vast majority of them I'd say would be one your smallest plan (going by the numbers) so your revenue from these people is going to be next to nothing, when you could be making 2x or 5x as much from them - design clients I've found generally just pay your going rate.

 

Having access to a large amount of resources is fair enough but is that guaranteed in stone, and are the costs to you always going to be the same? Again, if circumstances change at short notice you could find yourself in the s**t, quality of service goes down and your customers start jumping ship - just look at DSVR last year, they lost the majority of their customer (in the '000's) in just a few weeks and went down the pan.

 

The final point is the fact that I don't get the impression that you're treating this as a business - "as long as I break even I'm happy". That's not really a good attitude IMHO, as a business you should be at least making a small profit to reinvest. You will have customers who are relying on your service and any bad experiences will reflect not only on your hosting service but your design business as well.

 

Ok so everything I'm saying is negative but I believe you should really think this through properly, have you got a business plan written? I'd love to see you succeed in your venture but start from a solid base first!

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I see your business logic jayc89. You're right, competition is always good but it could bite you in the backside later on? If you start out at rock bottom prices you really have nowhere to go if you wanted to be more "competitive" in the future, at least with pricing.

 

Personally I'd focus on offering quality rather than quantity, and let your client base build up on your reputation. The better hosting clients are usually happy to pay the right price for the right product. Reading the various hosting forums you do tend to find that people are constantly switching between the budget hosts for various reasons, which means more "churn" (turnover of customers), and that can affect your bottom line for breaking even. There's a reason why the really good lesser known hosts are successful because their customer stay longer and the business benefits by, more or less, guaranteed revenue.

 

Budget hosts tend to have high numbers of customers which in turn leads to higher support costs, and if you're not brining in enough revenue you'll soon start running at a loss unless you have enough customers to cover your overheads.

 

Offering design clients a "reduced rate" is a cool move, though the vast majority of them I'd say would be one your smallest plan (going by the numbers) so your revenue from these people is going to be next to nothing, when you could be making 2x or 5x as much from them - design clients I've found generally just pay your going rate.

 

Having access to a large amount of resources is fair enough but is that guaranteed in stone, and are the costs to you always going to be the same? Again, if circumstances change at short notice you could find yourself in the s**t, quality of service goes down and your customers start jumping ship - just look at DSVR last year, they lost the majority of their customer (in the '000's) in just a few weeks and went down the pan.

 

The final point is the fact that I don't get the impression that you're treating this as a business - "as long as I break even I'm happy". That's not really a good attitude IMHO, as a business you should be at least making a small profit to reinvest. You will have customers who are relying on your service and any bad experiences will reflect not only on your hosting service but your design business as well.

 

Ok so everything I'm saying is negative but I believe you should really think this through properly, have you got a business plan written? I'd love to see you succeed in your venture but start from a solid base first!

 

Great post BlueDreamer, very thought out and put together! I totally understand where you are coming from. As for the "guaranteed in stone" side as long as I have my current job, I have the servers ^_^ So there should be no problem from this side of things - the company I am dealing with have a tech support guy on 24/7 365 days a year sitting in front of 8 large LCD screens al showing monitoring (Netsaint\Nagios) windows (with a unix system admin on-call if needed) - so if anything untoward was going to happen I personally offer my customers a response to their request within 4 hours, and there will be a tech support guy straight on the job at the server end. Which IMO is pretty good turn around time...

 

I have planned that my first 12\18 months I am not looking to make a profit, in fact just build up a client base of satisfied customers who will hopefully spread the word thus increasing my monthly income. I also understand what you are saying regarding quality rather then quantity, but with 24/7 technical cover, the reassurance of system administrators on-call if required and these prices, I think I have the best of both worlds.

 

I'm not looking to make mega bucks over night, instead start off slowly and gradually build a happy (and hopefully loyal) client base. Does that sound fair to you, or am I missing the point? <_<

 

Thanks again for the above post - was really helpful! B)

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No problemo, I'm glad you found it useful! Starting off small is the way most business begin, and with the facilities you have you're probably luckier than most. So yes, your growth plan seems good (eg not aiming for world domination in 6 months!).

 

As with any hosting business finding hosting-only customers is a hard slog (web design customers are different) because there is so much competition and every host and his dog are battling it out, especially in the budget market. That's why I suggested going upmarket a bit, not only is the income per account higher on average but you also generally get better quality customers who give you less grief.

 

Good luck with it!

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13 hours ago, OliverIsland said:

Actually, I would like to suggest <link> One of my web developer friend suggested that company and it seems that they will be one of the best internet hosting company in the UK in a few years. Because, they are replying tickets super fast, they are helping to transfer web sites from another provider, their prices are really good when we compare the others they are very very competitive. I hope this post helps to the members who are searching for good hosting company.

Do you realise it's been over 10 years since the last post on this thread?   Also who uses these traditional hosting companies these days?  You are far better off using a cloud provider (AWS, Digital Ocean) giving you full access to a machine rather than some severely limited interface.

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