Saturday, July 26, 2008

How to Make Money with Web Hosting

By Matt Hedges

Web hosting is a vital business that many companies embark on world-wide and enjoy a good profit from. There are many ways for a web hosting company to expand its operations and create even more income from their one single business. Web hosting itself requires some investment in equipment and space. Once that is acquired it makes sense to make the best use of it possible to generate as much income as the potential for it allows. Various ways to earn extra income are actively sought out in this very competitive industry.

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.

Additional Ways to Make Money with Web Hosting

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: Free web hosting allows a web host to earn from advertising. Since this service is rendered free to the clients, the web hosts what to use the websites of the client for advertisement purposes. These kinds of options are limited as only small businesses and beginners opt for free hosting services. Thus making lots of money with this service is logically not possible.

More Services for Making Money:

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.

Avoid Overselling:

Regardless which of the methods a host adopts to make more money, it's wise to realize that overselling is dangerous. Overselling occurs when a host offers too many customers space and then realizes it cannot obtain enough space or bandwidth. This creates overcrowding and many clients using a small space increases the danger of systems crashing and taking down the entire hosting business. A single system cannot hold more than a specific number of hosts. Know what the limits are and do not exceed them. The web hosts reputation will rest on this single issue regardless of how wonderful his offers are otherwise.

Web hosting is often a legitimate and profitable technique of earning money online. The nature and type of service however, depends on the knowledge of the host along with the equipment and programs he/she has access to. It is advisable that a web hot begins with a small business and then process to a large one with time.

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