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Taking Your Web Hosting Company To The Next Level
If you are a large or even medium sized web host, you can probably ignore this blog article today.
However, if you are a small web host – you need to hear what I’m saying. When you started, you resold dedicated servers or shared hosting plans from a larger web host.
Heck, you are probably STILL reselling…
Reselling Is A Fantastic Way To Get Started In Web Hosting
White Label Reselling was great to help get you going. In fact, you wouldn’t have your business today if it was not for the ability to piggyback.
Let’s be honest, your customers benefited because you chose to be a reseller and partnered with a quality web host.
Who has hundreds of thousands or even millions of dollars to spend building your own data center?
I’m not even going to bring up the hardware costs to stock the DC with competitive equipment.
…and then there is hiring the talent, the experience, and the know how of putting your idea to work.
The reality is that you could not have accomplished what you have without first starting as a reseller.
But, that little voice in your head keeps telling you it is time to stop making other guys rich.
After all, you’ve built up a pretty good sized business. You should start seeing higher profit margins, right?
More importantly, you should be personally profiting.
You are not alone, even some of the big boys grow up and move away from reselling hardware and move in to their own DC’s. Although I know some who have received incredible pricing and find it cheaper leasing hardware than going it alone.
But again, that takes a boatload of cash (I tried to Google an image of a boatload of cash but kept coming up with photo’s on Tom Cruise and Tiger Woods wife – so just imagine it if you can).
How Do You Move To Wholly Owned Web Host Company?
Colocation.
The truth is that almost every single web host (even the big guys) colo.
I only know a handful that actually OWN and OPERATE their own data centers.
Most of the largest web hosts on earth lease space inside of data centers.
In fact, there is one DC in Dallas, TX that has 4 of the largest dedicated server companies all under one roof. Some with space just a few feet apart.
Data centers are itching to fill up their space.
What does this mean for you?
You can get great pricing on a cabinet, half cabinet, or even on lease to own hardware.
It’s a step towards higher profit margins and the ability to grow even more.
I recommend starting small with colocation and getting a feel for the company you choose.
RECOMMENDATIONS: Some important things to consider when choosing colo…
- Does the DC offer a hand off or do you need to get your own bandwidth?
- How much bandwidth is included? How do they measure bandwidth?
- What is the hourly rate for hands/eyes?
- If the DC is not in your local area, do they have 24/7 support on-site?
- How tight is space? Is there room to allow you to grow in the DC?
- If you don’t have your own IP’s, does the DC offer them?
- How large is the DC’s IP pool?
- How much is additional power (you need to know if your plans are to fill up a cabinet)?
When picking a colocation partner, it’s important you do your research…. even tour the facility first hand.
For some Web Hosts, visiting the data center may be difficult based on their location. Many Web Hosts who colo never even visit the data center if they have a lot of Worldwide locations.
OpenVZ VPS