Why does Web Hosting business end up in turmoil?

Starting a web hosting business is a convenient, cheap, and safe option. If you have an already established business with IT infrastructure an additional hosting service can add value to your business. The only supplementary resources you need are website, hosting space, phone number and you are ready to go.

Even if it is that simple ever wondered why isn’t everyone doing it? Or even if they start why do they end giving up on it?

Infrastructure Liability:

Infrastructure is a very important aspect of any hosting service. Single downtime can blight your company’s reputation. For an exclusive infrastructure high investment is required. It is difficult to justify the cost of server hardware if the fine quality infrastructure is used along with a cheap hosting plan.

No 24/7 Support system:

Web hosting service calls for 24/7 support which involves live chat, email, and phone support. Most hosting companies fail to deliver so or don does not fulfill their customer's expectations. The response in off-peak hours, holidays, and weekends is what describes the efficiency of a company.

Low Profitability: Giving crazy discounts to your audience is the latest trend among hosting companies. This may be a game-changer for some since people are electrified at discount offers. In most cases, customers are attracted but the overall profit margin is very low. As a result, the company ends up in failure.

Managing Unstructured Teams:

Building up a proficient team and managing it for the best customer service is a pathway towards the success of a company. This pathway demands hiring talented people at good wages. Providing low wages means inefficient employees will risk the company’s repute whereas providing training can an out of budget thing for most companies.

No Promotion:

Attracting customers in a saturated market is much difficult than starting up a web hosting business. To promote your business there are paid and unpaid both options available. Getting customers is not guaranteed but marketing techniques should be designed accordingly otherwise the company will remain in debt of monthly recurring fees and end up in disaster with fewer customers.

Conclusion:

If you don’t want to risk yourself going into a web hosting business, a safer approach can be to become a hosting reseller. You can take a hosting from any hosting provider and resell it keeping your profit. It reduces the chances of failure, lowers the investment cost and no team will be required.