How to Start a Web Hosting Business

How to Start a Web Hosting Business

How to start a web hosting business may seem a daunting task. You may be thinking that there are so many things to know about and consider. But did you know that this industry is not as difficult and complicated as you may think? To make it easier for you, we will be providing an overview of how to put up a web hosting business.

5 Steps to Start a Web Hosting Business

To start a web hosting business, simply follow these five easy steps.

1. Determine Your Niche

Competition is tight in this business field. You might not compete immediately with the big boys. What you can do is to target a particular niche and grow from there.

It is advisable to provide something unique so you can distinguish yourself from the other companies. By finding your niche, you’ll be able to provide customized solutions that can fulfill clients’ needs. Whatever the niche, whether it is e-commerce hosting, personal blog hosting or whatever it is, you should figure that out before you start your web hosting business. Knowing your niche will help jumpstart your business and give you an edge over the competition.

2. Research Competitors

Research competitors’ business models. Find out what works for them and where there is room for some improvement. Analyzing the competition is one way to discover ways to get ahead of them.

research your competitors to find business opportunity

It can give you that much needed advantage when searching for clients, formulating marketing strategies, and providing services. Because the web hosting business is competitive, it is important, therefore, to get as much info that is possible to distinguish your company from the others.

3. Choose the Server Type

You have various options that you can consider if you are reselling server space.

Dedicated Server

This is a server that is dedicated to one client. Because of the numerous features, this is one of the more expensive types of server. The machine provides powerful features for bigger clients, such as HIPAA Compliant Hosting and enhanced security.

Dedicated Cloud Server

dedicated cloud server to improve business website performance

With dedicated cloud servers, you don’t need to worry regarding scaling infrastructure or server. Even with unexpected spikes in traffic, the performance remains the same. In terms of pricing, dedicated cloud server hosting is at the middle of the pack.

Virtual Private Server

A fully managed or self managed Virtual Private Server (VPS) is a single server that is partitioned so it can be used for multiple systems. Although space is somewhat limited, this is an affordable option – a great starting point if you’re new to the web hosting business. It will enable you to host various customers on one system and keep costs low. However, features might be limited compared to other types of servers.

Cloud Server

Also known as public cloud hosting, a cloud server is a scalable solution which pools the resources from multiple servers by using virtualization. It is ideal for fast growing start-ups, small eCommerce businesses, and websites with unpredictable traffic.

4. Create Your Business Model

Now let us discuss the business aspect of the web hosting business. You need to invent your brand and pay attention to the nitty gritty of your niche marketing.

In this step, you have to finalize your:


branding will help to be a well known hosting business

This includes company name, tag line, and logo. Find out what domain names are still available as you have to choose one and create a website for that domain. Ideally, the name must be easy to memorize and remember.


Iron out details of the pricing to find the sweet spot of how much hosting will cost you and how much the customers are willing to pay for the services.

Website Design

Like with any digital business, your company’s website will serve as the main store front, so make sure that it is top-notch. Your company’s website can be used by clients as an indicator of the quality of the services you’ll be offering.

5. Launch Customer Service

Consider having customer service for your web hosting venture. In this industry, potential clients need to be assured that they will get support regarding technical concerns. This is because clients will rely on your company to keep their website running smoothly.

good cutomer service ensure better retaintion rate for your business

If you’re not able to offer a high level of customer satisfaction, customers might choose another web hosting company. Customer service must be among your web hosting business’s top priorities. It’s what will endear you to your clients and ensure that they will remain loyal.

Advantages of Web Hosting Business

After knowing how to start a web hosting business, you must be informed of the advantages of offering such services.

1. It Is Easy

The web hosting provider will do most of the legwork. They’ll handle most of the technical stuff and keep the service running smoothly. All you need to do is keep clients satisfied and provide the right solutions for them.

2. Additional Income

Starting a web hosting business will allow you to earn additional income without giving up your day job, if you have one. Besides the initial setup and searching for new clients, you can just watch as your business grows.

3. Great Upsell for Digital Companies

If you already have a digital business (such as web design and development), throwing web hosting into your package will make your service all inclusive. This can give you an edge over the competition and help make your business bigger and stronger. By offering web hosting to clients directly on your platform, you can simplify things such as account management or software solutions which must be installed on clients’ machines.

Great Upsell for Digital Companies

Now that you know how to start a web hosting business, you can contemplate if this is the right industry for you. If you decide to enter this field, always remember to stick to your core values. Provide great service and customer support. By doing so, you’ll gain new (and more) clients. There’s a great demand for web hosting. If you do it right, you can watch your venture grow into a successful and profitable business.

Turbo Cloud Hosting provides high-quality and reliable web hosting services. We offer various packages that will fulfill your business needs. Questions? Call us at (480) 624 2500 or email us at