How would you go trying to start your own hosting company?

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[quote author=Rubicon link=board=22;threadid=7685;start=0#msg70073 date=1089679725]
How would you go trying to start your own hosting company?
[/quote]
Don't. It sucks. People suck. People are stupid.

Look, it takes money to make money. You would need to buy a good line that has a lot of bandwidth (full t1 to start maybe, but you will quickly need higher uploads if you get numerous clients and they have popular sites), and you will need fast boxes, several probably. Then you need to buy your software, which can be pricy if you want to run a windows server or use a db like oracle or something. Then you have to worrie about the monthly electrial bill on top of it which is a hidden cost. The cost of the line per month alone is going to be killer, that will be the majority of your overhead. Unless you have a good amount of money and are willing to take a risk do not bother, I would not reccomed anyone takeing out a lone to do this either, unless they have clients lined up, because this industry is packed, and the odds are you will go belly up.

peofeoknight is right. I spend $3,700.00 per month just to turn the lights on. That is just for bandwidth, rent, phone and utilites. Add even more for salaries, three company cars + insurance and all the other crap that you have to buy. Then you get to deal with all the asshole dumbass fuckers that call you up twice per month because they can't remember their password. And then there are the idiots that send you email saying that their email is down! WTF?

Dive on in and soon you will learn why they are regarded as lusers. You will also need to save back some money so you can get plastered a couple of times per month and cleanse yourself from their diseases. Hopefully you won't get DDoSed while you're loaded. Engineers at the NOC don't like it when you slurrrr your speech.

I could go on but I won't. It's just too painful ...... I need a beer.
Oh yea, We're opening another location in McKinney, TX in about two months. The workers are remodelling the place now. Maybe I need to start drinking liquor.

[quote author=Thing link=board=22;threadid=7685;start=0#msg70270 date=1089765223]
peofeoknight is right. I spend $3,700.00 per month just to turn the lights on. That is just for bandwidth, rent, phone and utilites. Add even more for salaries, three company cars + insurance and all the other crap that you have to buy. Then you get to deal with all the asshole dumbass fuckers that call you up twice per month because they can't remember their password. And then there are the idiots that send you email saying that their email is down! WTF?

Dive on in and soon you will learn why they are regarded as lusers. You will also need to save back some money so you can get plastered a couple of times per month and cleanse yourself from their diseases. Hopefully you won't get DDoSed while you're loaded. Engineers at the NOC don't like it when you slurrrr your speech.

I could go on but I won't. It's just too painful ...... I need a beer.
Oh yea, We're opening another location in McKinney, TX in about two months. The workers are remodelling the place now. Maybe I need to start drinking liquor.
[/quote]

Ahhh, that reminds me why I got into the networking field to begin with :p

outsource!

[quote author=$t0rm link=board=22;threadid=7685;start=0#msg70300 date=1089779154]
outsource!
[/quote] exactly what I was going to do if I took my freelancing any further (the few clients I had had their own hosting, which conveiniantly had not caused a conflict... all were on windows servers), but I am not going to need to be hosting clients since my friend is going to have me do his design/development for his site and his client's sites, I will be his employee rather then freelanceing... which is brutal.

Build them a website for cheap and then rip them off on hosting? Write it in the contract they can only host with you.

on top of that make them say that they have to stay with you for hosting and maintenance then you can charge them monthly maintenance fee on top of hosting.

I personally don't think screwing people is the way to go if you plan on starting a successful business.

Well, It really isn't screwing the customer, if its a legitiable charge, like if your actually performing the action of maintenance. You also have to bare inmind that there are MANY other hosting companys with equally competitive prices, in some cases better.

[quote author=Akamas link=board=22;threadid=7685;start=0#msg70546 date=1089919514]
Well, It really isn't screwing the customer, if its a legitiable charge, like if your actually performing the action of maintenance. You also have to bare inmind that there are MANY other hosting companys with equally competitive prices, in some cases better.
[/quote]

I don't mean charging for services, it just sounded to me like they were talking about hidden charges to make money and I don't agree with that. Then again it is the clients fault for not reading the contract. Either way word of mouth is the best advertising there is and if you get a bad word spread about you I don't think you will get to many future clients. On the subject of other companies competing, it will always be that way. Provide a better service and you will get a good word spread about you. As long as you keep from falling under you should do good. Quality of service is more of a factor that the price IMO. All of this of course is just my opinion.

I agree, if you end up screwing your customer once he's paid for the services he's not going to want to say many good things about your company. Ususally its the customer who helps get the word out.

remember, business only takes place when both parties benefit.

[quote author=peofeoknight link=board=22;threadid=7685;start=0#msg70571 date=1089921897]
remember, business only takes place when both parties benefit.
[/quote]

Like I said, imo you will only benefit for a short period of time screwing people over. Nothing I said sounds like the business would not benefit.

thats why you make them sign a contract, so you can screw them forever :D

Lol, thats funny because I don't think ANYONE would sign a contact over the internet. I bet the hosting company wouldn't last long, it'd loose too many customers.

There is no secret to success, it is well known. It is the number one thing the buyers complain about --- that they simply cannot find someone competent and reliable to help them! They are willing to pay, but the competent reliable help continues to elude them.

Ask Thing, or myself. We are successful because when someone needs help, they know who to ask, and we always deliver. Some customers want to go low ball. They eventually come back to us when the other guy FUBARs it.

[quote author=Grok link=board=22;threadid=7685;start=15#msg70616 date=1089924903]
There is no secret to success, it is well known. It is the number one thing the buyers complain about --- that they simply cannot find someone competent and reliable to help them! They are willing to pay, but the competent reliable help continues to elude them.

Ask Thing, or myself. We are successful because when someone needs help, they know who to ask, and we always deliver. Some customers want to go low ball. They eventually come back to us when the other guy FUBARs it.
[/quote]

Exactelly what I meant by saying quality of service is more important than price.

But you have to know that inorder for the customers to come to your door step, you need the price. They can only experience the quality of the services if they purchase it.

[quote author=Tuberload link=board=22;threadid=7685;start=15#msg70620 date=1089925174]
[quote author=Grok link=board=22;threadid=7685;start=15#msg70616 date=1089924903]
There is no secret to success, it is well known. It is the number one thing the buyers complain about --- that they simply cannot find someone competent and reliable to help them! They are willing to pay, but the competent reliable help continues to elude them.

Ask Thing, or myself. We are successful because when someone needs help, they know who to ask, and we always deliver. Some customers want to go low ball. They eventually come back to us when the other guy FUBARs it.
[/quote]

Exactelly what I meant by saying quality of service is more important than price.
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Price is EXTREMELY important. If you go in charging less than your services are worth, and the customer knows the business, you will NOT get the contract.

If company A, B and C come in and does a presentation saying they will provide 1-2-3 for around $250,000, and company D comes in and says they can do it for $87,000, most people will throw company D out on their butts. Clearly, goes the thinking, company D either did not listen, did not understand, or does not have a clue how to do the job.

So if you don't know what the industry rate is, and you low ball, you get screwed even if you are the most competent to do the job. Of course, that's unlikely or you would know the going rates.