The massive business of web hosting is a world-wide endeavor practiced by many companies large and small. There are specific needs in equipment in order to compete in the competitive field of web hosting. Web hosts are not limited to simple service provisions and client web site hosting. They often provide many other ways to make money for its clients. Being the highly competitive business it is they are always looking for more ways to utilize services to make money.
There are ample opportunities which the web hosts can utilize if they have the provisions for it. Such services can not only increase their income but also develops a better relation with the customers.
The list below includes just a few of the ways web hosts can make additional income.
Extra Ways to Earn Money with a Web Hosting Service
Reseller Web Hosting: This is an excellent method of earning money without much effort. The web host can purchase a web hosting package at a reasonable amount and resell it to for a larger price. Web masters and web hosts are making large amounts by applying this technique. This has been known to make the web master's richer overnight. However, this is not easy as it sounds to be. The web host needs to make the initial investments and would get the return only after reselling the server space. A small amount of space, exclusively for a small business won't suffice. The web host needs to have ample space purchased in order to begin such a business. After the web host has acquired huge server space and bandwidth, he/she can distribute it to other users in proportions. Each of the customers of his server space would provide him some charge on monthly basis and hence the process would go on.
The reseller earns money in much the same way as the original host. Monthly fees from their customers are pocketed by the seller. Since they have the original host providing things like IT and equipment they are free from that expense. Their income comes from the clients that purchase the service and setting up those accounts for them with the 'hidden' original provider. A reseller is usually offered space by the origin host at a discount that is often as much as 10%. The reseller's profits depend upon the size of the space offered and the bandwidth allowed.
The position of the reseller is largely favorable because it does not have to provide support as part of their package. Some, however are beginning to provide support service due to the heavy competition in this area. Another advantage is the size of the company. It can be operated right from your own home eliminating the need for paying on space rental, and even transportation costs to and from a place of business. Some companies grow so fast they end up needing more space and are buying up more space in order to outshine the competition.
Advertisement: Another way to make extra money is to allow some space for free hosting for clients looking for cheap web hosting. The host then puts ads on the client's sites to take advantage of their traffic. The downside is most of the clients seeking such sites have low traffic volume making this a difficult way to gain significant income from advertising.
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.
* Template creation: Established web hosts can increase their income by providing cheap services to the customer. This income is often more to give the hosting company more exposure. The host offers their customers the ability to purchase one of their special templates in order to create a visually unique and appealing web site, or sells them a membership to one of the big template services and gets a kick-back on that as well.
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.
Note of Caution: Don't oversell
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 a reputable and profitable adventure in making money online. The type of service you will be able to provide relies on the extent of your knowledge and training almost as much as it does the equipment you have access to. It takes time to learn all of the intricate details and is best to start small and allow your business to grow as your knowledge does.
There are ample opportunities which the web hosts can utilize if they have the provisions for it. Such services can not only increase their income but also develops a better relation with the customers.
The list below includes just a few of the ways web hosts can make additional income.
Extra Ways to Earn Money with a Web Hosting Service
Reseller Web Hosting: This is an excellent method of earning money without much effort. The web host can purchase a web hosting package at a reasonable amount and resell it to for a larger price. Web masters and web hosts are making large amounts by applying this technique. This has been known to make the web master's richer overnight. However, this is not easy as it sounds to be. The web host needs to make the initial investments and would get the return only after reselling the server space. A small amount of space, exclusively for a small business won't suffice. The web host needs to have ample space purchased in order to begin such a business. After the web host has acquired huge server space and bandwidth, he/she can distribute it to other users in proportions. Each of the customers of his server space would provide him some charge on monthly basis and hence the process would go on.
The reseller earns money in much the same way as the original host. Monthly fees from their customers are pocketed by the seller. Since they have the original host providing things like IT and equipment they are free from that expense. Their income comes from the clients that purchase the service and setting up those accounts for them with the 'hidden' original provider. A reseller is usually offered space by the origin host at a discount that is often as much as 10%. The reseller's profits depend upon the size of the space offered and the bandwidth allowed.
The position of the reseller is largely favorable because it does not have to provide support as part of their package. Some, however are beginning to provide support service due to the heavy competition in this area. Another advantage is the size of the company. It can be operated right from your own home eliminating the need for paying on space rental, and even transportation costs to and from a place of business. Some companies grow so fast they end up needing more space and are buying up more space in order to outshine the competition.
Advertisement: Another way to make extra money is to allow some space for free hosting for clients looking for cheap web hosting. The host then puts ads on the client's sites to take advantage of their traffic. The downside is most of the clients seeking such sites have low traffic volume making this a difficult way to gain significant income from advertising.
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.
* Template creation: Established web hosts can increase their income by providing cheap services to the customer. This income is often more to give the hosting company more exposure. The host offers their customers the ability to purchase one of their special templates in order to create a visually unique and appealing web site, or sells them a membership to one of the big template services and gets a kick-back on that as well.
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.
Note of Caution: Don't oversell
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 a reputable and profitable adventure in making money online. The type of service you will be able to provide relies on the extent of your knowledge and training almost as much as it does the equipment you have access to. It takes time to learn all of the intricate details and is best to start small and allow your business to grow as your knowledge does.
About the Author:
About the author: William MacMahon is web hosting analyst for WebHostingMadness.com. Visit WebHostingMadness.com to join him on his search for the top web hosting companies each month.
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