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Many webmasters are getting into the web hosting business by offering shared hosting plans to their own set of customers. There is just one problem. Trying to start a web hosting business can be just as challenging as marketing any other website, if not more so. For example, if you try to buy the keyword ‘web hosting’ on pay-per-click networks like Adwords, expect to pay around $14 per click. That would mean for only 1,000 clicks, (not sales), you would have to pay a whopping $14,000. And of this amount, you’ll be lucky if you get 10 customers, a few of which may not even stick around after the first month.
There is a better solution… buying web hosting customers. To buy web hosting customers, you will need to investigate existing web hosting businesses that are going for sale. You can either take over their whole business or have the customers transferred over to your service. Either way, buying web hosting customers can be a quick, easy and affordable way to jumpstart your own web hosting business.
The best place to find web hosting customers is E-Bay. Just be careful. Even though the sale of web hosting customers is 100% legitimate, there are people that will scam you. For example, I paid $700 for 100 web hosting customers that would be delivered in a few months. Well, when the deadline was up, I never got my customers. I did get my money back but only after I got Paypal to freeze the E-Bayer’s account.
With that being said, the key to avoid being scammed is to buy web hosting customers that you already know exist from established web hosting companies. But expect to pay a lot of money. The starting price for a set of 100 web hosting customers is around $5,000. Also keep in mind that the web hosting companies you’re buying the customers from can’t guarantee whether or not the customers will stay with your company. Additionally, make sure the customers are paying monthly subscriptions, rather than an annual fee. If you buy web hosting customers paying an annual fee, you may have to wait a year to see your money.
1 response so far ↓
1 dotservant.com website hosting // Jan 18, 2008 at 11:53 pm
Just a piece of advice, you should carefully study the profitability of the web hosting firm before entering into a sales and purchase agreement, most of these small ‘web host’ are selling bulk plans over a small reseller account in hope to float it on auction site for quick cash, there may be very thin or no profit at all after spending the cash to acquire the business.
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