Do you want to do hosting work as an affiliate? I do not advise anyone regarding this job. I just want to share my experiences. I had my own hosting company a long time ago. I was selling under a domain. I had my own dedicated servers. Then I transferred the company.
Starting Your Hosting Business
Good money can be earned from this job. If it wasn’t like that, there would not be so many companies. For the Internet to exist, information must be distributed from some place. Web servers do this job, and even a simplest blog requires a server. Of course, the web hosting business will continue as long as the internet.
If you want to sell without a company, I suggest you start as affiliate. I’ll explain this later. (Continue to read below …)
Let’s say you have established a legitimate company and want to sell. First of all, you should rent a server. Linux server prices start at $ 80 per month. If you will sell services on a Windows server and you must add an operating system price of about $ 40. These prices are vary according to the server features. Linux servers are mostly sufficient. It can run programming languages like PHP, CGI, ruby. Sites that use php like WordPress make up the vast majority of the internet. For asp.net sites, Windows is required. Although it is possible to run asp.net with linux, asp.net 4.0 is incompatible. (With Mono project)
If this server price is too much for you, you can buy cheaper VPS servers or even cheaper reseller packages. You can upgrade later.
Control panel for Hosting Service
What you need to decide next is the control panel. There are many options such as cPanel, webmin, Plesk, Hepsia. A control panel allows you to reseller and manage users’ accounts. Using this, you can keep customer information, create hosting packages and install them automatically. It is very difficult to manage a server without a control panel.
Receiving payments from customers
Of course, if you sell online, you will accept payment by credit card. This is a sufficient option for those who live in a country where Paypal is valid. You can do everything with it. Or you can be a member of a system that accepts credit cards. Such as Paypal , Avangate, 2CO, Clickbank. Meanwhile, 2CO is a terrible company. I say stay away.
If you are going to offer a money back option, there are things to consider. I think a refund is necessary. Increases sales.
You will incur some money with every money back. Each payment system receives some commission from you at the time of purchase. Example is 2.5% + $ 1. You can’t get this on refund. So the customer gets all of his money back, but you can’t get the commissions and deductions.
Server maintenance and continuous monitoring
Servers may fail too because they are also computers. Especially if you are not experienced in linux, you should definitely get a technical support service. If the sites remain offline for a long time as a result of malfunctions, your customers will get angry. Even if there is a loss of data, your phones start ringing. Frustrated customers advertise 10 times more than happy ones. Of course as bad advertisement.
You should also make sure that the server is running 24/7/365. Uptime below 99% is not acceptable. Monitoring programs are available to ensure this. Sometimes one site uses too high resources to prevent others from running . It may even cause the server to crash. You should learn to distribute resources such as CPU, Ram fairly. If you take a managed server or reseller plan as a remedy, you will not bother as these maintenance will be done by datacenter. Just focus on sales.
Possible problems include what
PHP version incompatibilities, customers running malicious commands via SSH, spamming, viruses, and illegal content.
Advertising Costs are Hidden Drain
The methods you will use for selling may differ. The most used methods, social media posts, (such as Facebook, Pinterest), PPC (Pay per click) ads and search engine ads (Example: Google Ads). Hosting advertising prices for Google Ads are skyrocketing. You must pay at least $ 5 per click for the first page ad. If the average conversion rate is 1 percent, you will have a cost of $ 500 for a sale. Unbelievable but true. That’s why I say forget the first page. You need to find a way to pay less, focusing on words that are rarely used. This is an art in itself and it is good to give it to the expert. You may have seen the conversion rate low. On average, a customer enters and exits your site 7 times before purchasing. If he hasn’t added your site as a bookmark, he clicks on the ad each time and costs you money. Therefore, you should set a limit per click and a daily spending limit. The sample is enough for $ 0.5 per click and $ 50 per day. By watching this for a while, you gain time to learn the system. With my own experience, I can say this. For every $ 1000 sale, I first advertised $ 500. The return of this advertising expense takes 2-3 months.
Another Headache : Fake Orders
There are too many fake orders in the world of hosting. It is necessary to pay attention to the shopping made with stolen or fake credit cards produced by the programs. A fraud control system will mark most of these orders. It is still possible to miss. If it missed once, you will recognise it when you can not get paid, that is 2 months later. During this time, the person uses the server and who knows what he does.
There are simple controls you can make yourself. Search the social media by registered email and search for evidence that this person is real. If necessary, call the person. If the name on the credit card is fake, the phone is probably fake. Or ask this person to send some documents such as passport picture and identity.