In case you haven’t noticed, the internet is hugely popular and it doesn’t show any signs of slowing any time soon.

There is a common quote thrown around when ever there is a new form of gold rush, and that is:

‘When there is a gold rush, do you want to be the one digging for gold or selling the shovels?’

In other words, you want to be the one capitalising on the new interest, without having to do the hard work. But why sell the shovels when you can rent them out and get a recurring income?

Website Hosting Is Like Renting Out Land

To have a website on the internet you need to have a place for it to live. This is called hosting and it provides the space for all the website files and the ‘bandwidth’ that allows for these files to be transferred to visitors computers.

However, the thing is that hosting is not just a one time payment, but something that you pay to a company every single month – and this is what makes it such a great business to be in.

Let’s Take A Look At The Benefits Of Starting A Hosting Company

  •  It Is A Low Cost Start Up
    Let’s get straight to the point. Anyone can start a hosting company. A lot of the major hosting providers allow you to purchase a ‘‘ package from them and start your own hosting business. Once you get bigger you may wish to get your own servers, but for as little as $20/month you can start your own hosting business.
  • You Have A Recurring Income
    Once you sign up a new client, then continue paying you each month (or year, depending on your billing cycle) until they decide to stop running their website or move to another hosting provider. This means that one sale can provide continual income.
  • There Is A High Retention Rate
    If you are targeting local small businesses that are not technologically savvy, then there is little chance that they will move to another hosting provider. This does not mean that you should take advantage of them, but if you provide a great service then you will continue to build on your recurring income as the majority of your clients will continue to stay with you.
As you can see the benefits of creating a hosting company can be great, but since there is a lot of competition then you need to find  a target market and be the for them.
 

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