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Web Hosting Leader: How to avoid web hosting business failure?

Failure in Web Hosting Business – Not a Chance

Internet has intruded into our lives in unimaginable ways. Whatever the requirement, whether booking tickets for a movie or selecting a new microwave, people are invariably turning towards the Internet as a resource.

Online marketing is a reality that cannot be ignored. In order to survive in this competitive market place, an online presence for companies is essential.

Web Hosting Business

All companies, small, medium or large turn towards web hosting providers to host their websites on the internet. Many individuals, for instance, celebrities, are interested in hosting their personal websites. Some individuals have web hosting requirements for blogging.

Thus the potential for web hosting business is enormous. Considering the enormous demand for web hosting services, many entrepreneurs would like to start their own web hosting business. However certain points need to be kept in mind to avoid web hosting business failure.

Business Plan

Prior to starting the web hosting business, put down a detailed business plan. You may take the help of an expert in the field or a consultant for formulating the business plan.

The business plan needs to cover all important decisions of the business such as server decisions – whether own or leased out, what web hosting platforms you will offer – whether Windows or Linux, the financial implications of these decisions, financial investment required, hiring of staff and such other decisions.

You should also put down as part of the business plan your estimated earning each quarter (or year, as per convenience) and how long it would be before you break even and start making profits. The business plan gives you a road map to proceed with your web hosting business.

In the absence of a business plan, the way ahead is not clear and chances of web hosting business failure are very high.


If you are new to web hosting business, it is best to keep the business model simple. You may opt to focus only on small and medium organizations and individuals initially, as their web hosting needs tend to be simpler than those of larger organizations.

This will enable you to provide best web hosting services to these clients. If you focus on satisfying everyone, it will negatively affect the quality of your services and set your web hosting business on the path of failure.

Quality of Services

Providing quality, web hosting services that are reliable and secure is more important than building a superior image for the business through advertising. Advertising is definitely an essential marketing tool. But it is quite expensive. In the initials days of your web hosting business, it is better to cut advertising costs and use the money on infrastructure expenditure or upgrading your applications.

The client expects certain minimum services from a web hosting provider such as uptime guarantee, daily backups and round the clock customer support. Ensure that you have resources to provide all this. If the basic features that your web hosting business offers do not meet the highest quality standards, the business is doomed to failure.

The word of mouth promotion of your services by satisfied clients is the best advertisement for your web hosting business.

Customer Focused Approach

Right from day one of your web hosting business, inculcate a customer centric approach and ensure that the entire team follows it. Make sure that the aim of your web hosting business is to enable your client to meet his business objectives.

Many web hosting businesses offer blanket plans to all clients. This will not work and will definitely lead to failure of web hosting business. You need to sit with each client, understand their requirements and work out customized web hosting solutions for them. The client will appreciate this.

Please note that as the client’s business grows, so will their web hosting needs. This will in turn have a positive impact on your business.

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Choosing Best Web Hosting

When you are looking for good web hosting you need security and peace of mind first. Second thing is 100% uptime or at least 99.9% uptime so that your site is not down at any point of time and as a result you don't have to lose your customers. There are many web hosting companies who are just reseller (it doesn't mean they are bad) but unless they are established you cannot trust them. So if you have such a confusion where to host your website than I would recommend Hostgator. Why? because they are established and already have millions of customers. They have their own datacenter with lots of their own servers and they are cheapest in the hosting industry. Also provide great support. Many of my sites hosted there and never had any problem.

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