If you’re considering starting a VPS hosting business and wondering how to go about it – this piece details the steps you’ll need to take to build a thriving business.
VPS hosting is still a wanted choice among business owners that look for a good, secure, and affordable hosting environment. It provides better security and performance than shared and cloud hosting and is more affordable than dedicated hosting.
The hosting uses a physical server sold or leased as a service to multiple users. It stores all the data on one physical server, which is why VPS has the highest level of security among all the available hosting types in the industry.
With VPS hosting, your security cannot be compromised even if another website on the server is hacked. It gives users many advantages of a dedicated server at a lower cost.
Why start a VPS business?
Analysts project that the VPS market, valued at $2.6 billion in 2018, will reach $8.3 billion by 2026, growing at a CAGR of 16.2 percent from 2019 to 2026.
Starting a VPS business lets you have a slice of the pie. Additionally, managing a VPS account is not a walk in the park. It requires advanced technical skills, which most businesses lack internally, and that’s where you’ll come in.
Beginning as a reseller lets you start a VPS business without incurring a large financial risk. However, you’ll need to put in a lot of effort to build quality, profitable, and sustainable hosting services.
This article explores five essential steps you must follow to start a thriving VPS hosting service.
Choose a dependable hosting provider
Choosing a reliable web hosting provider is crucial for any business, and the same goes for VPS hosting business.
The quality of the services you lease will determine the quality of the services you want to sell. You need to purchase a good reseller plan from a host with an excellent reputation. You can visit hostadvice to look at the cost of purchasing reseller hosting.
This will ultimately cut down your operational costs and your starting investment. However, it will take some time and effort on your part.
You will have to do some research, track the work of the potential providers, test their services, and look for discount prices, deals, and promotions. You can get all of this information online from reviews and testing sites.
Decide on a niche
The hosting industry has become massive, and yes, it is still growing. It has over 330,000 web hosting service providers, 200 million active websites out of 1.5 billion websites on the World Wide Web, and a value of 75 billion US dollars.
The list of services you can provide is endless, so you will need to zoom in on a specific niche if you do not want to get lost in this madness.
The only way to decide on a niche is to conduct more market research. Once you limit yourself to a certain market niche, you can focus on those specific services and their tasks and requirements.
The quality of the services and the overall performance are very important, so start small and upgrade as you go. This will help you stay profitable for a long time and build a good reputation in the industry. Managing a large number of VPS servers can be difficult, especially for a first-timer, so ease into it in time.
Customize the VPS infrastructure
As a VPS hosting company, your main task will be to create custom packages for your target customers’ needs which is why having a VPS infrastructure on the ground is more than necessary.
To successfully customize a VPS infrastructure, you will need to adapt to the other competitors on the market. Once you determine the specific services you want to sell, you must create customized server packages and include them. All should include disk space, RAM, and CPU cores.
It is important that the packages match your clients’ needs. So try to customize the plans are much as you can.
Initially, when you still work with a limited number of clients, you can use the manual billing method. With this method, you can arrange to receive the payment in the best way for you and your client.
Over time as your business grows, you can switch to new effective ways of billing, like an automated billing system to help you faster and easier track and process payments.
Supervision and Support
As a VPS hosting company, you must provide at least three methods for supervision. They can include a system for backups, support ticketing, and active supervision or tracking of your server.
The support and security services of your company will affect your reputation and credibility. Malicious activities and frequent cyber threats on a client’s site can result in the loss of clients.
Integrate tools and preventive measures in your packages or design a monitoring system to catch cases of abuse or spam. So your customers can feel safe and secure when working with you.
Wrapping It Up
Reseller VPS hosting business is not a simple task.
But if done correctly can bring you a lot of profit. We wish you the best of luck if you are seriously considering getting into the hosting industry!