how to start a web hosting business

This is one of the most short 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 the method, is it legal or not ?

yes its completely legal and the main company also allows you to do 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. through this script you will be able to do online order which are complete automated(Check the bottom page for automated script review)

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

my personal suggestions are www.Hostgator.com

Simple
Hostgator.com
provides you the best package ever you can get they support unlimited website, gives cpanel, huge bandwidth starting at 250gb a month

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

The most important thing to remember before starting this service you need to buy only resellers account otherwise it will go against the company terms and conditions and you account will be suspended.

So now you have a Resellers hosting and it cost you only $25 a month, start selling this 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 that you can at least (say 100 websites with good traffic can be supported
3. It not against rule neither you are violating any terms and conditions of Hostgator.com


How does reseller hosting work?

You have a reseller hosting account control panel called Web Host Manager. WHM is where you go to create your customer accounts. After filling in their account information you click "create." This will instantly set them up with their very 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 you or us.

And i can says that half of the small/free web hosting company follow this and give away cheap web hosting from big companies like hostgator (itself) and more

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

Hostgator Resellers
Reseller Hosting Starting at $24.95!

Now that you have setup a website and bought a hosting account

Another big task comes is to find potential customers who would be interested in buying hosting packages from you

you can do this by two methods
free an 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
craglist 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://www.sitepoint.com/marketplace/viewcategory?categoryid=21

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

Craglist
Craglist 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