how to start a web hosting business

This is one of the most simple and successful method i am telling you though which you can open a small hosting company/business for as low as $24.95 a month(using discount codes will cut cost by 20%)

so what's the method, is it legal or not ?

yes its completely legal and the parent company also allows it

so build you new web hosting business and start making money with the minimum investment

the simple steps to start are

1. buy a domain related to hosting any thing like
freehosting.com , cheaphosting.com any thing you wish

2. buy some automated user management script i.e. a script through which automated online order can be processed(Check the bottom page for automated script review), i dont know about other companies but Hostgator does provide a free script for that purpose called WHMCS

3. the most important buy a reseller hosting pack from a big webhosting company

my personal suggestions are www.Hostgator.com

The
Hostgator.com
provides a great package their reseller account support unlimited domains, unlimited cPanels for every sub user,free billing system huge bandwidth starting at 500gb a month

and that enough for starting a small hosting website and if you think that you need more can upgrade to there higher bandwidth
packages

Only resellers account allows legally to re-sell

Once you have a Resellers hosting account you can start selling the package to small websites by providing cheapest web hosting you can go minimum $1 a month and i am sure with the bandwidth you get its really don't affect your website and you can still run profit

Advantages
1. No hassles of starting a new hosting company like setting up servers
2. You get enough bandwidth to support tons of website

How does reseller hosting work?

A reseller hosting account comes with Admin control panel . WHM is where you go to create customer accounts. . Customer are provided with their own control panel called cPanel. This is where they will go to administer their website. Once they are logged into cPanel they can create sub domains, email addresses, change passwords, and much more without requiring any help from us.

The Hostgator itself provide free WHM panel through which you can create accounts for your customer completely automated

Hostgator Resellers
Reseller Hosting Starting at $24.95/month

Next step is to find potential customers who would be interested in buying hosting packages from you

you can do this by two methods
free or paid

paid:
paid method includes search engine advertising as well as email marketing
obviously search engine marketing through google, yahoo , msn is the better option as on search engine you can target customers searching for webhositng at cheaper rates or for free
craigslist is also a big place to sell your hosting product

free
this method is also very efficient but you wont be getting too much of sales compared to craigslist and search engine marketing but still you can get 50+ customers a month
sell you hosting at forums market place
some good market place forums are
sitepoint
digitalpoint

here are the thread links of these forum category

sitepoint webhosting category link
http://marketplace.sitepoint.com/categories/web-hosting-deals

digitalpoint webhosting category link
http://forums.digitalpoint.com/forumdisplay.php?f=98

these two method are sufficient and i can say definitely you can mange to get 50 + potential customer of on the above two forum and there are many more forum you can find

so start making money guys by opening you own webhosting company

Craigslist.org
craigslist is huge and you automatically get lots of targeted queries i tried to do some posting in few cites and result were so good that my hosting space is now full and i am running under a profit of $260 every month which is really cool

i m thinking of now buying more space and increase my customers base

Here you can see the rate card how much it will cost you to get the account

You can see the reseller account only cost $24.95 a month and with time if you made progress with your company you can upgrade any time.

max limit is 700gb and i think it is sufficient enough bandwidth and can host tons of high bandwidth consuming websites.

This is the best way you can make your hosting website automated.

advantages of automated control
1. saves lots of time
2. automated payment system

one of the best client management billing support system is WHM http://www.whmcs.com/

NOTE: WHM AUTOMATED CONTROL IS PROVIDED FREE WITH HOSTGATOR RESELLER HOSTING PLAN

why WHM because using this client management system you can make your website completely automated
1. it creates web hosting accounts for your user automatically after payment
2. provide various method of payment system like( credit card , paypal egold, google checkout)
3. looks complete professional

Now that you have complete information on creating you won web hosting website what are you waiting for go create one and make some easy cash !

you might have bumped o search engine about free web hosting and have always thought of why are they giving away hosting for free. Webmaster can also make use of a free web host for there benefits like

1. A free web host can be used to make money by adding a script which forces to display advertisement. in this method you give them hosting accounts and in return put a advertisement on their hosted websites. this method is gernerally not considered good as many ad companies like google adsense does not allow this, but some ad companies do like adbrite.

2. Or they can use free web host to gain serps for search engine and backlinks.
here you can gain backlinks from websites of others by asking them in TOS to put a mandatory link back and as soon as their websites build some authority you get serps in return.

so either way creating a free web hosting or a paid web hosting is a profitable part time business