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Looking to become a hosting provider
Hi,
I'm trying to become a hosting provider. I have been investigating and in order to start I need:
- A dedicated server
- WHM/cPanel license
- Blesta or ClientExec or WHMCS
However my question is: do I only need a single dedicated server to start? I mean let's say that my domain is going to be SUPERHOSTING.COM with IP 100.200.300.400 then how do I provide to my customers NS1.SUPERHOSTING.COM and NS2.SUPERHOSTING.COM? Do I need 3 IPs then as a minimum to start (1 for my domain and the other 2 for the nameservers)?
And another question... how easy is the installation of WHM/cPanel? Is it that easy as to buy the license and then run a single install script? Or is it complicated?
Thanks,
gapper
Comments
To start, you can start with a VM instead of a dedi, this will greatly reduce your startup cost and you can always migrate as you grow.
In theory, you need only 1 IP for all of them, this works and many hosts do this, since if that server is down, there's no point of having your nameserver servers resolve anything.
Installation of WHM/cPanel is easy, configuring it and managing it is hard. You will need more knowledge than just yum update && yum install.
All you "need" to be a hosting provider is a reseller account.
Investigate more. Read the threads on this site. Then visit LEB and note the pricing. Find your niche where you can compete.
Install cPanel DNS Only to create and manage the DNS cluster.
Installing cPanel itself is extremely simple. It's just a matter of running a bash script and following some instructions. However, tightening the security is a different ball game.
When you buy the license, the seller usually doesn't mind installing and setting it up for you.
Having said that, I wouldn't recommend getting into the hosting business unless you have first hand experience of atleast installing and troubleshooting the simplest moving part in the complete setup - cPanel.
Managing server loads, finding and kicking the abusers, rotating IPs etc again require experience.
Honestly just get a BuyVM resellers account and test the waters. No point dumping a heap of money in when you're not able to make a sale. Then scale accordingly.
I think you can go with a KVM VPS with dedicated core. And you can use a cPanel VPS license, which it's cheaper. But that's not enough.
I was planning this too and I realized I need:
A web server
A backup server
A DNS cluster (cPanel DNS Only it's free): can be 2x cheap OpenVZ VPS from different providers. Or the same cPanel server + a cheap VPS.
Control panel license: cPanel (cheaper if you use VPS)
OS license: Cloudlinux (it helps a lot)
Billing system: Blesta, Clientexec or WHMCS
Addons: Something like Softaculous or JetBackup.
cPanel installation it's easy. Having a secured and realiable server it's the difficult part.
But let the big players answer your questions.
Or just get a Reseller account and a billing system.
Take a look at namecheap they offer 24/7 support with some good reselling packages.
@gapper
You don't have to have a dedicated server to start. I would recommend starting with a reseller hosting account.
Most reseller accounts you can set up a custom name server on as well as add on whmcs. Will get everything you need at a lower price point than a Dedicated server. Then as your business grows you can always upgrade later. The host that you pick should be able to help you with this.
As others have said, installing is the easy part. Configuring, maintaining, and monitoring is where it gets tough.
If you're new to the game I would highly suggest a reseller plan since everything is managed for you.
Although you don't get the experience you need this way, it's the easiest way of entering the market, so you can learn the basics and then expand as needed.
Almost all web hosts do not use dedicated cPanel licenses, they split the server into small virtual machines and license it using a VPS license since that's cheaper especially at volume.
We offer reseller plans in the UK at PageClick if you're interested, or pretty much any decent host that offers reseller will do.
Feel free to PM me if you have any questions, I'd be happy to help
But if a web host does this then the customer will know that he is hosted at a VPS instead of a dedicated because the logo will say "cPanel VPS optimized" or is there a way to hide that and make the customer believe that he is hosted on a real dedicated box?
I don't recall the newer Paper Lantern theme showing that, X3 did which is now discontinued.
But either way, it shouldn't really concern the customer if they even know what VPS is.
As Francisco said, start with a reseller and when you really want to use a dedicated box or a vps, do it, with the money that you earned. But always improve your service.
@Francisco - www.buyshared.net (US, EU)
@Ishaq - www.pageclick.net (UK)
I'm running cPanel on a VPS and I don't see the "cPanel VPS optimized" message
X3 theme or Paper Lantern?
I doubt anyone would even care about you using a VPS license, if the performance and service offered by you is good.
So, that is something you needn't worry about. VPS is a great way to start, as it is easier to manage and take snapshots of.
Also, the cPanel license is a lot cheaper, which would save you some money that you could probably use to buy a cloudlinux license instead.
The best combo of
cpanel+cloudlinux+softaculous
"cPanel" on Paper Lantern and "cPanel Accelerated 2" on X3.
On paper lantern I don't have any logo.
X3:
I see no problem customers see that you are running CPanel on a VPS, they will see that you are not running your own DNS as well, this does not matter if you keep a good support and reliable service also in this business, all penny counts and CPanel for VPS is less than half of the price of the dedicated one
I installed mine yesterday, maybe yours is a bit old.
3rd Oct
My honest, and humble advice is that you ditch the idea for now. If anyone tells you otherwise, they are either looking for your money, or they are waiting for you to fall and then laugh at you.
I would honestly suggest you avoid the reseller thing if you are serious too.
This is what I would do, before venturing into the hosting business.
Get a VPS, install CentOS, install the different components/services manually, configure things manually, host some test sites on it - and play around as much as you can. Things will break, and things will require updates, and all this will help you troubleshoot and learn as you go.
After sometime, you will gain some experience and you will understand things. You can then go ahead and reinstall the OS, install a CP (cPanel, or any other) and host your own sites to begin with. After you go through all that, you can venture into the wilderness.
Remember, clients' are going to rely on their host to help them fix/solve issues.
If you do not have time for this, then stop right now, as it wont be fair for the clients.
If someone says, you can go ahead and just hire a sysadmin - what is the point?
Good luck.
For start you can get a Master Reseller (can sell shared and create reseller accounts) or more advanced Alpha Reseller (create shared, reseller @ master accounts). Check my link for a stable provider.
A million times this. What you need is experience, and reseller hosting isn't going to give you that. If anything, go work ticket support at an existing hosting provider for a while (alongside running your own non-business setup like @rsk described), to get a better idea of what operating a hosting company involves.
And seriously, avoid reseller hosting. It's not going to teach you the skills you need.
You should also know that selling hosting is a commodity business, which means that most providers and especially those that sell undifferentiated services are going to have very low-profit margins.
Low-profit margins means that you are going to be working your ass off (if you want your company to not go bankrupt or otherwise lose its business) for a sub-optimal monthly wage.
This also explains why so many of the larger providers are going into new ventures - cloud servers, cloud storage (like hubic), VPN, domain registration, slices, etc.
No disrespect intended to @gapper, but @rsk and @joepie91 are correct. The questions gapper asks are a direct and obvious indication that he/she is not nearly ready. That applies to the business side as well as the technical side.
First:
Write a very detailed business plan. It is a huge amount of work, but it will be worth the effort. A good business plan will highlight technical deficiencies (what you need to learn) as well as show you the financial aspects of your hosting provider business: non-recurring (one-time) and recurring expenses (equipment, licenses, advertising, labor, unexpected problems, etc.), as well as anticipated income at competitive rates. Be very conservative. Overestimate your expenses and underestimate your income. Keep in mind that it will take considerable time before you business gains enough customers to sustain a profit, if it ever does.
Ask yourself what will distinguish your startup business so that it can compete against all of the other similar businesses that are well-established and have achieved significant economies of scale?
Are you ready to plunge your entire life into this plan? Give up sleep, fun, friends, family, buying non-essentials for a long time, in order to make it happen?
Second:
Does the business plan show that you have a reasonable chance of success, which I very much doubt? If so, then go out and learn the technical skills that you identified as deficient in your business plan.
Keep your expenses as low as possible for as long as possible (use a virtual machine on your home computer, then migrate to a VPS where you must, etc.) Save every penny. You will need the money to sustain your business at a loss as you gradually acquire customers. It will probably take many months, and you will see your savings (investment) deplete far more rapidly than you can possibly imagine.
Third:
When you think you are ready to setup for launch (e.g., ready to buy the necessary hardware, licenses, etc.), reassess your Business Plan. How are you positioned compared with the plan? Have costs increased as you learned more? Do you still have enough funds on hand to sustain the business for many months? Etc.?
Fourth:
Few prospective businesses get to this point. If you are truly committed and truly believe in yourself and your business' long term prospects, then sally forth and give it your best effort to succeed.
If you are a web developer please stay away from the vps/ dedicated , Just get a reseller account and focus in your business, Hosting is not profitable anymore for the new company's, Just start with a reseller and you always have the option to upgrade and move to VPS , But you will pay 20x the price. 2$ will become 40$
Oh, that reminds me. Aldryic wrote an excellent guide on how to be a good hosting provider.
EDIT: And don't start the business until you have enough funds to run at a loss for at least a year.
Hi folks, before he even think to start such a business, he should gain some knowledge, how he will even be able to offer support to it's customer, when he has no clue of anything in this industry
TL,DR:
DON'T START A HOSTING BUSINESS.
Longer version:
If you ask in a random forum so primary questions on how to start selling hosting, then, you are not capable to do it.
Ask yourself:
Do not even try a reseller account. You cannot handle even simple issues, imagine what is going to happen if there is a bigger issue with your reseller provider (e.g. deadpool).
I really wonder with you or others that asking here this question. Really, will you make a similar question like, "I want to open a car repair shop. Do I need to buy screwdrivers? What kind of screwdrivers do I have to purchase? To I need also to buy a hammer?".
Asking that kind of questions, makes you really not capable to start that job...
P.S. And all those are mainly from technical perspective. I didn't touch the needed business plan (calculate costs + time + salaries compared to the initial capital to start with and continue operating for months with actual income)
@gapper
You only need 2 ip address as I agree with the dozen of people have recommended start with reseller granted I know you don't have much decent resellers these days. If you want to just go out try vps go for it cause that's the only way you can learn. Find someone who can mentor you as well that always helps even doing research.
I agree with most of the people except for that said "Don't start hosting" because the only way you gain experience is to do it hands on ask questions they don't have books on how to manage hosting company but there are lots of people out there to help you.