Why People Quit Web Hosting Business?
For starting an online web hosting business you don’t have to fulfill any criteria to qualify. All you need is: website, hosting space and a phone number to kick start a web hosting company. But some people fail to run a successful web hosting business. Here are some reasons why:
#1 Profit Margin
In web hosting business people offer crazy discounts without thinking much about profits. The tendency of people is to focus on mass and attract as many customers as possible. This is the area where many hosting owners fail; they manage to attract customers but fail to make profit out of it.
#2 Infrastructure Cost
A single downtime may affect your business and spoil your company’s reputation. In order to setup a quality infrastructure a decent investment is
required. If a good infrastructure is used and cheap hosting plans are offered on it then it starts getting difficult to justify the cost of the server hardware.
#3 24/7 Support
The nature of web hosting business demands round the clock support and service. The hosting companies fulfill the requirement during business hours but when it comes to offering support and service during off peak hours, festivals and weekends the problem begins. Most web hosting companies fail to offer 24/7 support.
#4 Building a Team
When the customer base starts growing more people are required to run the day to day operations. Getting talented people at a lower cost is not easy and if you are not making good profit then you cannot afford to hire good people.
#5 Poor Promotion
To get customers you have to promote the business on the web. There are free and paid options to promote the business but it doesn’t guarantee whether you will get the customers or not.
Easy Way Out If you have failed as a web host or confused whether you should start a web hosting business then there’s an alternative that can save you from any mishaps. By becoming a reseller web hosting provider, you save a lot of your efforts from the above which reduces the chances of any failure. You don’t need to invest a lot for the infrastructure, neither you need to hire a team. Simply buying a web hosting plan is sufficient.
The future of web hosting business in India
1.1 MILLION million SMB’s have registered the domain
16 MILLION running small businesses.
30 MILLION running micro businesse
47 MILLION SMB's in india
It’s always the right time to start a business. The future of web hosting business in India is very bright. It would take time to educate the people, the hosting company’s who will survive in a long run would own good share of customers from this 47 million SMB’s. The web hosting companies would be in the league of billion dollar company if the profit margin is maintained between 30% – 35%.
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Don’t Worry About Failure… You only have to be right once. -DREW HOUSTON
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