Tuesday, May 31, 2011

Ways to Profit from Web Hosting

By William MacMahon


Web hosting is a booming business that is practiced all over the world by a large number of companies. For a desired web hosting service a company requires some specific equipment. The services of web hosts are not just limited to providing server space and hosting the client website. But they can also opt for several other ways in which money can be earned. Since web hosting is a very competitive business today, people want to look for unique opportunities which can be utilized for earning money.

There are ample opportunities which the web hosts can utilize if they have the provisions for it. Such services can not only increase their income but also develops a better relation with the customers.

The list below includes just a few of the ways web hosts can make additional income.

Tips to Make Money with Web Hosting

Reseller Web Hosting: This is an excellent method of earning money without much effort. The web host can purchase a web hosting package at a reasonable amount and resell it to for a larger price. Web masters and web hosts are making large amounts by applying this technique. This has been known to make the web master's richer overnight. However, this is not easy as it sounds to be. The web host needs to make the initial investments and would get the return only after reselling the server space. A small amount of space, exclusively for a small business won't suffice. The web host needs to have ample space purchased in order to begin such a business. After the web host has acquired huge server space and bandwidth, he/she can distribute it to other users in proportions. Each of the customers of his server space would provide him some charge on monthly basis and hence the process would go on.

The reseller earns money in much the same way as the original host. Monthly fees from their customers are pocketed by the seller. Since they have the original host providing things like IT and equipment they are free from that expense. Their income comes from the clients that purchase the service and setting up those accounts for them with the 'hidden' original provider. A reseller is usually offered space by the origin host at a discount that is often as much as 10%. The reseller's profits depend upon the size of the space offered and the bandwidth allowed.

This is an advantageous position to be in as the reseller does not have to provide for assistance and support in their packages. With the development of this industry, and the heavy competition developing some resellers are beginning to realize the need to offer these services however, in order to remain competitive. Reselling has a low overhead since it can be operated largely from home. All that is needed is the initial investment of origin host space. Some reseller companies grow so fast, however that they end up needing outside office space to contain the business.

Advertisement: Another way to make extra money is to allow some space for free hosting for clients looking for cheap web hosting. The host then puts ads on the client's sites to take advantage of their traffic. The downside is most of the clients seeking such sites have low traffic volume making this a difficult way to gain significant income from advertising.

Other Services to Generate Extra Income:

* Optimization: This can be a useful service to provide extra income for a web host. Clients are often unfamiliar with methods used to generate more traffic-but they know they want the traffic. Since they don't know how to get the traffic a web host can give them information on SEO (search engine optimization). Clients then can be given the top search engines and the host can charge a fee for submitting URLs to the most popular ones. The most often submitted engines are Google, MSN, Yahoo, etc.

* Website template creation: Established web hosts can make more income by providing clients with affordable prices. These low priced services are like come ons in an exchange for building the reputation of the company. The host offers clients the ability to purchase templates. Since everybody wants to look unique they often grab up the offers. The hosts can also give clients a membership to a large template website with fees to join and earn more money on each sale.

* Selling domain names: Selling domain names to customers can is a great way to earn extra money. Web hosts who do not offer this are missing out on a large portion of their possible income. Registration for the transfer of a domain name, as well as the original registration of the name can definitely make money for a web host. There are many private domain name companies to work with to provide this service.

Site Builder tools: If one can provide their clients with website related offers and techniques to build a better website, then customers will always appreciate such offers and would like to obtain them from the web hosts. Web hosts can act as one stop shop for the companies in providing all the necessary kits that they require for developing a website. Templates, font, pre build graphics, and customization etc. can always earn some extra profit for the web hosts.

Note of Caution: Don't oversell

No matter what method is adopted for web hosting money making, it has to be remembered that there is no overselling. This is such a situation where a web host offers space to large number of clients but ultimately fails to retain the service. Too many clients using limited space can be a dangerous situation where there is a high chance for the entire system to crash along with the business of the web hosts. Too many web hosts cannot simply sustain simultaneously in a single server. The bandwidth and the space of the server have to be judged beforehand. The reputation of a hosting company depends on these factors to a large extent.

Web hosting is a legitimate and lucrative way to make money online. By nature it depends on the abilities of its operator as well as the quality of the equipment and services to which it has access. The most secure way to establish a web host service is to start small and grow with your expanding abilities over time.




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