Why People Quit Web Hosting Business

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Why People Quit Web Hosting Business?
Top 5 Reasons Why People Quit Web Hosting
Business Starting an online web hosting business
has become quite easy. The best part of web
hosting business is that you dont have to
fulfill any criteria to qualify to become a web
hosting provider. All you need is a website,
hosting space and a phone number to kick start a
web hosting company. Many people find this very
easy and start the web hosting business. Below
are few reasons why people give up their web
hosting business- 1. Profit Margin Making
profit is the most challenging part of any
business. In web hosting business people offer
crazy discounts without thinking much about
profits. The tendency of people is to focus on
mass and attract as many customers as
possible. There is a cost involved behind
offering service to every customer and on top of
that profit has to be made from every customer.
This is the area where many hosting owners fail
they manage to attract customers but fail to make
profit out of it.
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• Infrastructure Cost To start any business some
  sort of investment is required. In web hosting
  business, infrastructure is utmost important to
  keep the customers website up 24/7. A single
  downtime may affect your business and spoil your
  companys
• reputation. In order to setup a quality
  infrastructure a decent investment is required.
  If a good infrastructure is used and cheap
  hosting plans are offered on it then it starts
  getting difficult to justify the cost of the
  server hardware.
• 24/7 Support Most web hosting companies hate to
  offer 24/7 support. The nature of web hosting
  business demands round the clock support and
  service. A web hosting company has to offer 24/7
  live chat, email and phone support. The hosting
  companies fulfill the requirement during
  business hours but when it comes to offering
  support and service during off peak hours,
  festivals and weekends the problem starts.
• Building A Team An individual can handle few
  customers for a certain period but when the
  customer base starts growing more people are
  required to run the day to day operations.
  Getting talented people at a lower cost is not
  easy and if you are not making good profit then
  you cannot afford to hire good people.
  Inexperienced people are hired
• and trained and there is no guarantee whether the
  inexperienced staff would continue or quit the
  job after few months.
• Poor Promotion As mentioned in the start of the
  article, starting a web hosting business is easy
  but promoting the business, getting customers and
  surviving in this saturated market is not that
  easy. You have all the basic things required to
  run a successful web hosting company good
  website, contact modes, payment options, hosting
  space etc. To get customers you have to promote
  the business on the web.
• There are free and paid options to promote the
  business but it doesnt guarantee
• whether you will get the customers or not. Even
  if you dont have a single customer you have to
  pay a monthly recurring fees to run the business.
  This recurring cost starts to become a burden
  when you have fewer customers or more customers
  with low profit
• margins.
• Easy Way Out
• If you have failed as a web host or confused
  whether you should start a web hosting business
  then theres an alternative that can save you
  from any mishaps.
• By becoming a reseller web hosting provider, you
  save a lot of your efforts from the above which
  reduces the chances of any failure. You dont
  need to invest a lot for the infrastructure,
  neither you need to hire a team. Simply buying a
  web hosting plan is sufficient.

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As a reseller, you buy a hosting plan from the
web hosting provider and can resell it at your
own price. Here, as you are buying server space
from a web hosting provider in bulk, you get it
at a cheaper cost. Additionally, you dont have
to spend a lot buying the datacenter and worry
about routers, switches, firewalls, storage
systems, servers, etc. Neither there is any
server maintenance task involved. Also, the cost
of setting up a team will be cut down. In case
any technical issue arises at your client end,
you can contact your web hosting provider and
get help from them. So, if you are planning to
start a web hosting business, you can consider
becoming a reseller instead. Related Guide to
Make Profitable Web Hosting Business Closure Its
always the right time to start a business. The
future of web hosting business in India is very
bright. There are 47 million SMBs in India, out
of which 30 million are running micro businesses
and 16 million are running small businesses. Only
1.1 million SMBs have registered the domain and
most of them are not having an active website. It
would take time to educate the people, the
hosting companys who will survive in a long
run would own good share of customers from this
47 million SMBs. The web hosting companies
would be in the league of billion dollar company
if the profit margin is maintained between 30
35.
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