How to start a hosting comapny

Status
This thread has been locked.

TrentS

Premium
Feedback score
11
Posts
1,222
Reactions
396
Resources
0
I really would really like to start a hosting company. I have no idea where to start. How much money you need who you need to pay to setup servers. If anyone knows HMU.
 
Type
Offering
PebbleHost
High performance, consistent uptime and fast support. Minecraft hosting that just works.

Ian.D

COO @ Dot-Tech LLC
Supreme
Feedback score
19
Posts
1,034
Reactions
927
Resources
0
So if you don't know how to drive you should never drive?

If you don't know how to drive you take a test, then lessons how to drive then another test. It takes a while to get a license so that argument is invalid. You don't just jump in a car and drive on the road without knowing how to drive....... COMMON SENSE.
 

FTSOwner

Feedback score
0
Posts
396
Reactions
143
Resources
0
It's protfitable after like 5 months[DOUBLEPOST=1472397084][/DOUBLEPOST]
Mate, driving is something different. You honestly can't teach someone all the aspects about a server hosting company so quickly.

Who said it has to be done overnight? As long as the person willing to learn then there is no issues that the person can later rig up a company.

If you don't know how to drive you take a test, then lessons how to drive then another test. It takes a while to get a license so that argument is invalid. You don't just jump in a car and drive on the road without knowing how to drive....... COMMON SENSE.

Just like it take a while to gain the knowledge to start a company.
 

Ian.D

COO @ Dot-Tech LLC
Supreme
Feedback score
19
Posts
1,034
Reactions
927
Resources
0
Who said it has to be done overnight? As long as the person willing to learn then there is no issues that the person can later rig up a company.



Just like it take a while to gain the knowledge to start a company.

Sure but then you go back to the fact there still is no money in the industry for new hosts. Either way our opinions will differ but there is no reason to continue on this thread.
 

Fire

Always DM me here before dealing via Discord.
Supreme
Feedback score
74
Posts
3,045
Reactions
1,745
Resources
0
It's protfitable after like 5 months
Which is longer than what most new hosts last. Especially ones with little money, and run by someone with no real experience.
 

FTSOwner

Feedback score
0
Posts
396
Reactions
143
Resources
0
Have you ever owned a hosting company? Do you know how many things can occur whilst owning it?

Actually just for the records yes.

To keep it "short and sweet" prepare for the worst and hope the best.
 

Shattered

old-timer
Supreme
Feedback score
5
Posts
3,486
Reactions
2,059
Resources
0
If you don't know linux & web development, you'd likely be paying someone to do all of the work for you. The guy doing all of the work would know more on how to run the place than you would.

- Website $100-200
- Logo & banners at least $100
- Domains at least $60/year
- Panel Licensing - (this ranges with the amount of clients you have) Lets just say at least $30/month because that is how much I was paying to have 15 servers with Multicraft & WHMCS
- Livechat software (pricing depends, you can get garbage ones for free) $?
- A 32 GB dedicated server can cost you at least $70/month
- Node setup (security changes, multicraft installation, WHMCS setup, etc) at least $60
- Maintaining Nodes (updating server JARs, security, software updates, etc) $?

Maybe I didn't include everything, I am sure I haven't, but this is just a rough total which adds up to be around $500, and again this is a really bare bone setup. And then $100/month after that to pay for the node, and licensing.

And then for the 'staff' I mean... 14 year old volunteers
- You'd have to find livechat sales operators (which isn't like 'oh jimmy you are my friend want to work for me', it is even harder than picking staff on a Minecraft server)
- People to answer the tickets who can: setup subdomains & SRV records for clients, fix Minecraft issues, and help a user around the panel.

Now maybe when you are just starting out you'd only have like 2-3 other guys, but they are extremely hard to find, and when you have volunteers it is really hard to make them work when they get nothing out of it. You can't tell them bye-bye if they are not answering enough tickets, because it would be near impossible to find another volunteering replacement.

Overall, this isn't even worth doing unless you can cut the costs doing it all yourself, and have the experience. If you are going to pay someone to set everything up for you it'll cost you at least $500 as I have stated above. Starting with no clients, it can take you MONTHS to earn enough just for it to start paying for the $100/month hosting. Lets say it takes you 4 MONTHS to gain 30 clients, and and they are bringing in $150 each month, $100 of that would have to go to the dedicated machine and licensing, now you have $50 profit which you need to use to start paying off your starting expenses of $500, and the $400 it costed you to get on your feet.
Of course you will be getting more and more clients, like maybe on your 6th month you'd have 60 clients. It still would take you forever to pay off of the expenses it costed you to get going, never mind the work you would be putting into it.

Now, if you had experience to setup the host yourself, and had dedicated machines laying around it would cost you near nothing to get started. Everything after that you'd be profit. Profit you can keep for yourself or invest back into the company improving and making it bigger, instead of paying off the costs it took to get started. This is how many of the hosts that exist now got started.

Most 'businesses' start with one person's effort, not someone paying for other people's effort with money they are not making.
 

FTSOwner

Feedback score
0
Posts
396
Reactions
143
Resources
0
Most 'businesses' start with one person's effort, not someone paying for other people's effort with money they are not making.

Actually it the oppose, for absolute quality you WANT to hire professionals to do some/all of the work load. While the owner focus on the business itself.

Is that more expensive? Very much so but it does often times result in unparalleled quality.

However like you explained in great details it is very difficult to find one who know what they doing AND want to be dedicated and passionate towards your ventures.
 

iiEnderr

PvPArcade Owner
Supreme
Feedback score
8
Posts
1,435
Reactions
403
Resources
0
Why does everyone say they have to buy the node? Why can they not create the server lol, is this what the mcm community has come to thinking every hosting company uses OVH you can easily make a 32gb server for $500-$800 with an Amd fx 6-core, probably won't be the best, but it is better than paying for $100 every month, for you thinking you won't have clients, but if you have the server yourself. You can use it for later on projects.
 

Shattered

old-timer
Supreme
Feedback score
5
Posts
3,486
Reactions
2,059
Resources
0
Why does everyone say they have to buy the node? Why can they not create the server lol, is this what the mcm community has come to thinking every hosting company uses OVH you can easily make a 32gb server for $500-$800 with an Amd fx 6-core, probably won't be the best, but it is better than paying for $100 every month, for you thinking you won't have clients, but if you have the server yourself. You can use it for later on projects.
Colocation could be just as pricey as a server from OVH.
 

FTSOwner

Feedback score
0
Posts
396
Reactions
143
Resources
0
I recommend you not start a hosting company. There are too many out there.

That literally have no bearing on the opening of a company. Is it more competitive than before? Sure but please don't be bluntly stating it because of "saturation levels".
 

FTSOwner

Feedback score
0
Posts
396
Reactions
143
Resources
0
He did, he closed it after a month.

Please be informed the operation lasted slightly longer than the claimed closing date (about a week later more).

As I mentioned earlier that was the "peak" of the most difficult marketing period and as well as the forum wasn't being the most cooperating at the time.

Which is why I always prepare for proper shut down should unpredicted conditions should ever strike.
 

Ian.D

COO @ Dot-Tech LLC
Supreme
Feedback score
19
Posts
1,034
Reactions
927
Resources
0
Please be informed the operation lasted slightly longer than the claimed closing date (about a week later more).

As I mentioned earlier that was the "peak" of the most difficult marketing period and as well as the forum wasn't being the most cooperating at the time.

Which is why I always prepare for proper shut down should unpredicted conditions should ever strike.

Please share with us your business registration for your legitimate host you ran and failed. Because after all, you have all the knowledge in this industry so you must have all the proper registration because your knowledge would have told you to get it.
 
Status
This thread has been locked.
Top