Should You Sell Hosting?
Collis Ta'eedWhen you take on a job to build a client’s website, a natural question that comes up is ‘do you have hosting?’ More often than not the answer is no, leaving freelancers and web agencies with the choice of whether to refer the customer to a third party webhost OR setup and sell their own hosting.
For many, myself included, selling hosting seems like easy money right? You rent a server from one of the myriad hosting companies and then become a reseller. With many web hosts you can brand their control panels and with some even automate billing. Hosting can then become a source of passive income. That’s the theory anyhow…
Where it can go wrong…
Hosting can in fact go a bit wrong. The problem in my opinion is that hosting, particularly if you are handling your client’s emails is a mission-critical operation. If something goes wrong, it isn’t a case of ‘take your time gettin’ that fixed, no rush’, it’s more like ‘GET ME MY EMAIL NOW!’ or ‘WE’RE LOSING MONEY’. This is OK if you can fix the problem. Where things go wrong is if you are with a webhost who isn’t helpful or the problem is a hard to fix or data has been lost permanently.
I’ve had good and bad experiences with different webhosts, some are nightmares and others come through when you need them. A good place to read up about webhosts is on forums like Webhosting Talk. If you’re selling hosting, who are you using? Have they been good? Did you have any nightmare episodes?
It also depends quite a bit on how tech-savvy you are. If, like me, you know a little bit, but not enough to feel comfortable or confident fixing things, you really are beholden to the tech support staff of the hosting company you’ve chosen. If you’re more adept you may not feel as powerless as I have at times.
Another issue to think about is what you will do when you’re on vacation. I had one experience where three days into a summer trip I got an angry phone call at some ungodly hour from England (where one of my clients was) telling me that his email had been down for two and a half days. It turns out that just hours after I left, because I hadn’t setup log rotation (something I didn’t know existed), the server logs finished using all my available hard drive space and the whole virtual server went down. Needless to say that phone call, that problem and the ensuing time calling my webhost and trying to remember passwords whilst away from my desk was not a happy time.
What happens if you shut up shop?
Now if you’ve ever sold hosting you’ve probably thought of or experienced some of those problems, but here’s one you might not have dealt with. I stopped freelancing a year ago now and while I don’t take on any more client work, I haven’t figured out how to get rid of my hosting clients.
It feels like it should be simply a case of telling them all to find new hosts, but since many clients are highly un-savvy when it comes to anything technical, moving someone off your webhost can be painful. The problem is even more complicated if your client has a website which is more than just a few HTML pages. In that situation you will need to recreate databases and even possibly adjust code if the new host supports a different version of products you used.
Then of course there is also moving domain names and the inevitable to and fro needed to transfer them, not to mention possibly finding yourself trying to explain what a nameserver is to a client who struggles to grasp email!
The result is that after a whole year I’ve only managed to move about 40% of our clients. Moving the rest is one of those tasks that rests at the bottom of my to-do list, along with go to the dentist and organise my accounts. In other words it’s a task that there just somehow never seems time for!
Serious Money
So far, selling hosting sounds pretty glum. But there is one good reason to get into it. Money.
If you freelancer for many years, you will inevitably pick up a lot of clients along the way. If you price your hosting well and gather enough clients, selling hosting can in fact be quite lucrative. I know of another freelancer who after a few years of working has close to 100 clients on his hosting service, each paying a healthy, overpriced, monthly sum. He’s had a few crises, but the returns more than make up for the problems.
Some Suggestions
My suggestions if you are going to get into hosting are:
- If you’re going to sell hosting, really sell hosting. In other words don’t sell hosting to a couple of clients and then stop, because you’ll get all the drawbacks without the rewards
- Find a host that helps you upgrade servers easily and painlessly
- Find a host that lets you give your clients as many tools as possible so you don’t find yourself spending all your time creating email addresses
- Find a host that fixes your problems quickly, and that when things go really wrong, you can get on the phone with
Over to You
What do you think of selling hosting? Do you do it? Have you had a good experience?
Vote in the poll and leave a comment about your experiences, whether you’ve earned a decent income, who you use and any funny stories you have!




















VonSkippy
December 23rd, 2007
Why is it when graphic/web designers talk about hosting, they only mention money and control panels and how many domains/clients they can stuff on the cheapest reseller acount that is already just one of dozens of reseller accounts on just one poor old underpowered server which is just one server among hundreds on a underpowered network with insufficient bandwidth?
Yet when network designers talk about hosting it’s all about Upstream Providers and Server Spec’s and Network Backbone and Available Bandwidth and QoS and Backup Power Capacity and Cooling and Storage Backup and Uptime and System OS and Memory Optimization and Database Tweaking, etc., etc.?
The world is chock full of incredibly bad web hosting that crumbles at the first whiff of traffic, and the primary reason is that people buy into the “anyone can be a reseller” nonsense. It’s the cyberworld version of Amway or Shaklee.
If you can’t control what you’re reselling, nor add value to what you’re providing to YOUR clients, why (oh why oh why) would you dream of doing it?
Matthew Hall
December 23rd, 2007
Personally, i run all the hosting for my clients through a host called SuperBytes.net, They’ve done a great job so far.
Ben Harper
December 23rd, 2007
Looking to get rid of your remaining hosting clients? I’ll take them off your hands for you! Seriously!
Your point about email is a great one. It is probably the single most annoying / complicated issue about hosting because everyone lives and dies by email. And it can get you involved in a lot of daily communication with your clients about their email problems.
But, it can be nice to be the guy your clients go to for everything. It’s a great way to stay in the loop on what they are up to.
Toby Hede
December 23rd, 2007
I think it really depends on the types of systems you are building.
If you have many smaller, static or mostly static sites, the technical complexities are much reduced and hosting can be very profitable.
If you are building larger-scale or more complex systems, then I would generally suggest thinking carefully before taking on hosting.
Chad
December 23rd, 2007
For email (and other apps such as calendar and docs):
http://www.google.com/a/
This way you can sell your hosting with very little concern, and outsource the email handling to google. Its not only reliable, but the absolute best spam filter on the net, in my opinion!
Chad
December 23rd, 2007
I missed a couple more upsides of using google apps for your domain. If you switch your hosting company - the email is completely separate and unaffected by the move. All email is archived, so if a client accidentally deletes a mail, google has a backup of it as well.
Michael Martine
December 23rd, 2007
Colis, this is superbly informative, with some real meat on the bone. I have been toying with the idea. Some of my blog consulting clients have asked. I’ve shied away from it precisely because I envision the nightmares you describe, while doubting the money would be worth it. In my situation, the majority of my clients already have a site or even a blog, and they want to add a blog or improve the site, so I don’t know if I’d get the numbers to make the money worth the hassle.
Chad, that’s a great idea, separating out the email and apps from the rest by using Google Apps. I happen to love Gmail and Google Docs, and wouldn’t have any trouble recommending them to others.
Could anyone recommend a solid reseller program that’s more stuff than fluff?
shafiu
December 23rd, 2007
We were thinking of doing hosting. But may be now its open for discussion again.
riki
December 23rd, 2007
VonSkippy’s points make a lot of sense. I think unless you can add value it not a good idea. Maybe if you’ve got half a dozen small clients with small static sites it might seem like a tempting option for some easy money. But I think you can run into a lot of unexpected problems.
For example you find yourself in the position of trying to explain ongoing power outage problems in California, to clients based in New Zealand. Problems that you can’t do anything to solve, other than migrating everyone to a new hosting plan. Which could mean unpaid work and a lot of unhappy clients, all unhappy at the same time.
Also if you part ways with a client and their new web developer comes knocking on your door asking for hosting account details. You suddenly need to think about migrating not only their website. databases and domain names, but also any IMAP email stored on the server, plus passwords which you may not have access to, and web stat logs which you’re clients may depend upon for their annual reports.
I think I’m more content just to get the odd rewards payment when I refer new clients.
Josh
December 23rd, 2007
Web hosting has really gotten way too crowded, and overselling is way too prominent in the market. I don’t understand why customers are so attracted to getting everything for nothing, but they are. Therefore, many “web hosts” find it to be a smart business plan. Unfortunately for the customers who get sucked in to that flawed business plan, many of these $1.99 “web hosts” close up shop after about a year or two of business, which is no picnic for them.
That is why, if you do intend to provide web hosting to your design/creative service customers, I would highly recommend that instead of hosting them yourselves, you go with an affiliate program. You still get compensated for the referral, but instead of dealing with the issues a client can bring, you can make sure that your client gets the best service, but you can sleep better at night.
My two cents.
Rene
December 23rd, 2007
lol… nice to read this experiences…
I wanted to… i will still think… but probably will either way. Will just try do it the wright way.
Thanks for the infos
Warren
December 23rd, 2007
I rent a hosting server with a friend of mine and for a little more space on the server, he takes care of the administration of it and the problems. He is very reliable and I know this from years of doing business with him. Also, we found a server host that is rated highly and have only had one downtime of a couple hours in the half a year we have had it.
It is a matter of doing your homework and finding reliable resources. Then it is a great way to have some steady income.
linda
December 23rd, 2007
I set up all mail with Google, who I find to be very reliable. And charging a fee to set up the service means I get the profit and don’t have to palm my clients off to the ridiculously expensive Australian hosts that charge about $100 a year for a .com.au email address.
And then yes, I have a reseller account that allows unlimited domains for a minimal fee each with cpanel. It’s not too pricey and the servers are faster than any other I’ve used. The downside is I have to do my own back-ups but I’m ok with that.
Jarrod
December 23rd, 2007
I have a programming and technical background, and if you also have a technical background I would recommend hosting from the start of your freelance business. I’ve been freelancing for well over 5 years now, and when I first started I resold web hosting for $100/year and I got $50/year out of it. I soon switched to having my own dedicated server that I managed. The cost was about $150/month and I soon was making money off it. Now I’m with Rackspace and the cost is higher, but the service is “fanatical”. It’s all about baby steps. I moved to a dedicated server once I was able to pay for it with my existing hosting clients, then I moved up as my number of hosting clients increased.
The reason I like it is because of the web applications I build. I can setup cron jobs, install new packages, and have full control over everything when I’m setting up web sites. As well, working with control panels can be a security risk and, once you’ve got enough experience, they take longer than doing it yourself from the command line.
The other big issue with hosting is whether you’re tech-savvy enough to really manage it or not. You don’t want to have to phone your host tech support any time you get a support request. So if you’re savvy enough to add users and e-mail addresses, restart services, and troubleshoot the most common issues that arise from web hosting then go ahead and start reselling hosting. If you’re solely a web/graphic designer then I would stay away from a dedicated machine and just resell space from a different web host, and just collect a resellers fee or commission.
Tom
December 23rd, 2007
I think it’s a poor idea unless you really know what you’re doing. For me, offering hosting to the occasional freelance client and as a business itself alongside other offerings from my company, is a no-brainer. I have vast experience setting up and administering dedicated servers so, hey, I’m hosting my own sites, why not host others’ for money, too?
The biggest problem comes for people who find a host and do reselling. If you’re really lucky, that host will actually know their servers from a hole in the ground. I can’t count the number of hosts I’ve used with “amazing support” who didn’t even know how to track down an Apache segfault. One of the top-rated hosts out there took 12 hours to complete it, only because I was gone for 12 hours then completed it for them. When the server goes down or something stops working on your box, you naturally assume somebody is going to fix it quickly. Don’t be so naive. The host you pick may not even have a presence at the datacenter they use. You know that $100/mo premium you pay for “managed hosting?” You’re paying a script to ping your server ports every few minutes. That’s it. There’s no dedicated admin with 20 years of experience staring at your server status 24/7. Most companies only have one or two of these “Senior Admins” because they’re so freaking expensive to employ.
So, imo, if you’re going to offer server hosting, know how to run a server and do it yourself. Every server I have is custom-made and partitioned at the datacenter I get them for. The “path” is DC -> Me -> Client. That’s it. They build my box, plug it in, give me the IP, and say “good luck.” Contrary to popular belief, the safest way to host is without a safety net. If something goes wrong with the server YOU know how to fix it; if you’re on vacation you’ve hired someone knowledgeable to cover for you. If something goes wrong with the DC, you don’t need to wait through level after level of communication because the DC is who you’re hosting with.
Don’t get me wrong, if you’re strictly a designer and have no desire to spend years learning the admin trade, there are still ways for you to do it that won’t end with clients yelling loudly at you and you praying whoever fixes the problem. Just do a lot of research and testing (like intentionally breaking something software-related and seeing how long it takes them to fix it) and find a host that knows what they’re doing. There may be upwards of 5 of them in the world
Gavin
December 23rd, 2007
no one has brought up the potential problems with the alternative. I used to help clients get their own hosting and over time it would come back to haunt me. When there was a problem, I still had to help them fix it which would involve chasing down their hosts, dealing with accounts on my clients behalf, finding passwords that my clients had lost or even getting a an irate call from a client wondering why their site was down when THEY had failed to pay the bill to their hosts!
I now host nearly all my sites on a mid-spec virtual dedicated and although the learning curve was steep. ie log rotation! it’s all under one roof and all under my control which means it’s actually easier for me to keep abreast when problems arise.
Robin
December 23rd, 2007
I don’t think it is as big a deal as you guys are making out, provided you think it through. Email is the biggest factor, which is why I send all that to Google Apps. It helps me sleep at night.
My host recently changed all it’s servers and made us do a manual migration, moving the sites and databases didn’t take long at all.
It’s worth thinking about what type of hosting you’re selling to what type of client. Some sites can afford to go down for a few hours here and there. No one is likely to be on your case. Others require that 99.9% service agreement and will jump on you the second it’s down. Generally I’d use my instinct to tell which clients would be good to host and which I should send elsewhere.
Adam Griffiths
December 23rd, 2007
I used to offer web hosting, twice. I failed both times due to lack of good marketing and experience. Although everything was at the right price, that isn’t enough for people. I now have a server administrator on side to deal with anything I can’t.
The key to good webhosting is to find a really good host to rent a server from. If you don’t have the confidence or indeed client-base to go straight to a dedicated server, try a VPS first then upgrade. Alternatively you could use a service like MOSSO or something similar.
Brian
December 23rd, 2007
I have been offering hosting for my clients for 4 years. I have 3 dedicated servers and the income from the hosting is almost up to 50% of my annual turnover. I have found that as long as you apply the service packs and keep your software up to date you shouldn’t have too many major problems.
I had a hard drive fail but the company who supply servers fixed it in a couple of hours and only had around 20 mins if downtime as the drives were swapped out.
I spent a lot of time looking at different resellers before going with my current provider so its best to research this before deciding who to use.
Robert
December 23rd, 2007
@Tom: You’re 100% right - if you don’t know much about technical details of the hosting - don’t sell it. The only option is to setup your own dedicated server and sell the hosting this way. If you’re less “techy” - the good solution is to use some kind of afficiliate service as Josh marked.
Cheers
Constantin Potorac
December 23rd, 2007
Merry Christmas to everyone.
Steve Spatucci
December 23rd, 2007
Great article, Collis - I’ve had people try to bully me into selling hosting before, but I imagined having all the issues you dealt with. It just doesn’t seem like something a single freelancer would want to deal with - a small three- or four-person shop, maybe, but not an individual.
I don’t sell postal services to my clients who want to do direct mail pieces, nor do I sell shipping services, communications services, etc. - seems best to just point them in the right direction, give them help along the way, and either charge or build in costs for that help.
Russ Perry
December 23rd, 2007
I just wanted to share a great (and easy!) little combo I’ve used for tons of clients, especially all those “friends” that need a website:
1 - Register a domain with http://www.name.com
It’s $5.95 the first year, but the best part is they have automatic setup with Google Apps, ie. Email.
2 - Fire up a free wordpress account, pay for the $10 domain mapping.
3 - Change the nameservers under your name.com account (the only part I haven’t really streamlined)
4 - That’s it! In about 8 minutes, and for $15.95 for the year, your client has a basic site and email. Charge whatever you deem fair! The great thing about wordpress is that for a lot of startups/small business it’s more than they need and they can updated it/edit it on their own totally taking them out of the loop.
When my clients outgrow the limitations of the wordpress.com account, we upgraded them to a hosted setup (more money!), and we offer custom template designs for them ($$$!).
Russ Perry
December 23rd, 2007
In part 4 I meant to say totally taking US out of the loop! Sorry!
Michael Martine
December 23rd, 2007
@Gavin: Thanks for bringing up that aspect! I’ve been in that situation a couple times and it isn’t fun. But now, as with so much in life, the decision seems to be a choice of 6 of one or half a dozen of the other!
Mike
December 23rd, 2007
Many moons ago (ok so it was only like 2-3 years ago) i thought about starting my own hosting business - in all honesty i’m very glad i didn’t!!! The current market is completely over run with wanna be web hosts; the majority of times you find out that a specific host is actually a 15yo running a reseller account - definately not good as a recommendation or for your clients as your methods of hosting support are severely limited. Sure i have a reseller account of my own (if ever need) but personally i think the best suggestion is to leave it to the pro’s who are dedicated for that sort of thing. Of course, just because a company is a so called pro doesn’t specifically mean their any good - you get what you pay for!!!
riki
December 24th, 2007
@Gavin It also mean more paid work, if you’re fixing problems for clients. But at least in this case you’re not to blame if they’re using hosting a proper hosting company.
Also if you manage web services for a client you should have a secure system in place for keeping a record of all passwords and account details.
Nobodies mentioned RAM. If you’re building web apps that use a lot of RAM, you need to be able to regulate how much RAM is assigned to each client account. Their needs could fluctuate throughout the year, during busy periods, growth etc, and you need to be able to charge accordingly. Plus ensure that you’re other clients aren’t adversely effected.
Zac
December 24th, 2007
I originally got into hosting client’s sites because I had so many of my own personal sits and projects that needed hosting that I figured it would be a good way to offset the costs of my own hosting needs.
The biggest problem I have found with offering hosting is having to switch hosting providers. That is a huge pain when the sites all run off of databases.
riki
December 24th, 2007
I use Dreamhost and that never runs out of Databases
Eric Gruber
December 24th, 2007
What works best for me is that I only sell hosting to those clients I’ve designed for. I don’t force anyone I design for to use me as their host, but for reasons that Gavin above already explained, I simply mention the benefits.
There have been a couple of sites that I felt would be best if they had their own host so I referred them to a hosting company that I trusted with good rates that I was familiar with. You just have to use your head about it and don’t let yourself get taken advantage of.
Oh, and always use a contract.
fc
December 24th, 2007
I had done a videocast on webhosting as a business option long back which nobody bothered to see…
Anyway, in my opinion, freelancers shouldn’t tackle hosting, no matter how efficient a sys-ad you are .. as you said in the post mission critical hosting can wreck havoc to the entire business if something goes wrong and is not fixed properly.. and add to that support requests at odd hours.. all hell will break lose if one of your clients has a major problem at the same time as when you have to meet your important deadlines…
Anyway the hosting market is so saturated at an international level it is better to suggest a good host to your client and earn brownie points than open the door for a potential screw up by hosting them…
instead web hosting can be done at a local level, for local small businesses and getting them onto the web.. and perhaps use them and their site visitors as leads for your freelance work.. considering the scale the amount of support issues won’t be high and for sure won’t be something you will have to deal with asap…
Mark Anthony
December 26th, 2007
I’ve tried everything Collis writes about and in most of the comments here.
I think that the one obvious point to be taken here is that hosting, and how you do it, all comes down to your own tastes, technical abilities, and business style.
One note on google apps email. I’ve used it for my own domain for about a year now, and for several clients, and it is great, but I did run into a serious problem with it, that I’m not sure has been officially solved to this day. When I tried to pop my domain from both my macbook mail app and my motorola q, some messages, randomly, would not be available to one once the other had popped it. I even have, as an original google apps beta tester, contacts pretty high up the google apps chain (can’t share that info here, of course, but I can always pass information along if requested). Also, when you do change hosting services, you do have to point the dns for the email correctly, unless you are doing that through your domain name registrar account, which is the best way to accomplish this particular approach.
If you can find a good host, email is not a problem, and you can always actually charge for the google setup as a feature. But there is a way to possibly make more revenue off this aspect, while getting the email off the hosting account. I always point out to my customers when doing the setup that email is not always reliable, no matter what server you use, unless you can afford your own account with a company like rackspace. There are several services that actually sell email disaster recovery services, along with spam filtering, antivirus, and even incoming and outgoing email filtering. These services are particularly useful for clients who have regulatory needs, like HIPPA or Sarbanes-Oxley (if you don’t know what those are, you shouldn’t be selling email services to doctors, dentists, psychiatrists, or even chiropractors, as well as certain legal and financial businesses). I resell this service to the customer through reselling, and provide the first line of customer support. You can also do it as an affiliate. The service I resell, though there are a couple of others of equal reputation, is mxlogic.com.
As far as picking a reseller company, I have been through hell on this one, especially with ait.com, the first company I every resold. I ended up mostly satisfied with hostgator.com, but then I found, through a personal referral, my present company, site5.com. They have extremely affordable methods for using them which include buying multi-site hosting to resell yourself, affiliate reselling, and even reselling with automated customer signup and billing portal (software free). The last option requires the most up front investment of time, and more technical know-how. And their technical support is really good. I had been operating my own godaddy.com reseller account for most domain registration and some web hosting for more tech savvy customers for the past several years (through their reseller division, wildwestdomains.com). But now I’m shutting that down and switching to enom.com to have the self-service portal on my site5.com reseller account fully functional.
By the way Collis, I agree. I’ve gone through moving several customers from one server to another two and in some cases three times now and it is not fun. Once you find a control panel you like, though, like CPanel which I now use, you can often find a reseller that will do the transfers for you, and there are automated export import features built into CPanel to move databases, emails accounts, etc. I also love the fantastico interface for setting up and updating several applications I frequently use for customer sites including wordpress and joomla.
Well that’s all for now. This is my first comment on the site, which I just found today. This is a great site, and I look forward to participating in the community here.
~ Mark Anthony
Tonie Lambert
December 26th, 2007
If any of you are considering reseller hosting I would really recommend http://www.servwise.com, they have been excellent for us and there uptime is 100% and they have responsive 24hr support plus the prices are pretty good too.
Luke Mackenzie
December 26th, 2007
I already have a VPS but only host a few old clients with very small websites. When I started my business, I wanted to find my own clients but it soon become obvious that freelancing through agencies works better for me. I’d still like to be able to generate a decent passive income from my server, though. What advice do people have for attracting new hosting clients? Is it enough to put up a brochureware site and advertise using google adwords? What are other people doing? I am a php developer and reasonably savvy on the server side so am not so concerned by the sysadmin issues. I’d love to be able to do what Jarrod mentioned and end up with a Rackspace server - they really do seem to be the best (in the UK at least) - but it is not an investment I can make at the moment.
David
December 26th, 2007
I began selling hosting in 2004 and after the first year everything was running fine no complaints or major issues. Then i decided to take a well deserved snowboarding vacation… on the third day @ 2,100m i received a text message (to my surprise!! didn’t even think i would have reception) from one of my clients indicating that the emails were down and urgent deadlines needed to be meet!. So i thought Oh Sh*t as i was just after getting off one of the highest ski lifts and so i proceeded to snowboard down 3 different (some above my level), LONG slopes that brought be into the local village. I actually could snowboard right up to one of those all in one phone box’s with internet touch screen etc. I logged into the control panel (with all my snowboard gear on) and sorted the issue. Funny thing was after all the “James Bond” type drama, i texted the client to tell him it was sorted and he was none the wiser i was on vacation
ha ha. And to this date i haven’t had any other issues with reselling!!
Chris
December 27th, 2007
I resell hosting to my clients through (mt)
Doing so has made the sale with some clients: knowing they will be taken care of all the way through.
I have never had a problem with it, plus, (mt) has a panel just for my iphone.
Robert G
December 27th, 2007
I have personally hosted and i get the rude but actually relevant question “what if you get hit by a bus then what do i do?” to which i usually respond with “i’ll be dead and not care about your website”
In any event its probably better to leave hosting to a company and not a 1-2 man operation.
Christoph Hörl
December 27th, 2007
In the first years of my web work, I had a small reseller account at a hoster not far from home. There I could manage 25 clients (what was enough) without any work on a server. After two years I canceled this account, because I didn’t like to wirte bills, check my money and all the other things related to hosting. The clients went directly to my hoster. Nothing changed.
Now I have a good partner who sells hosting. I know he is good. So all my new clients go to him. This is the best solution so far.
David McKendrick
December 28th, 2007
To those of you considering entering the web hosting market because of this post: Stop and do some serious research before you jump into the pool.
First off, the hosting industry is quite saturated. There are companies out there paying up to $200 per sales lead — for a client whose annual revenue won’t even exceed half of that. Acquiring clients isn’t as easy as 1-2-3. While you may be able to convert your freelancing jobs & clients into some additional revenue you’ll also have an insane amount of additional responsibility to them.
Imaging having a design client who you need to respond to within 15 minutes at 4 AM when their e-mail becomes available or in the middle of Christmas vacation, dinner or while you’re stuck in traffic on the highway. It’s not all fun & games — and when clients rely on you for mission critical e-mail, data & security — and you fail? Your reputation has just got kicked down a couple of notches.
I’ll admit upfront that I myself got involved in the web hosting industry back in 2003 as a ‘hobby’ provider. For a few years I operated my own smaller
Javier Linares
December 28th, 2007
In my experience, hosting can only go wrong, because when it goes well nobody thinks about it. So, as Christoph, I decided to partner with a friend that makes hosting his fulltime job. When a customer asks for hosting I recommend his services, but I insist the customer can go with any provider (that suits the requirements a Drupal system needs) and that we have no direct relationship other than working together for a few years. A lot of customers still go with him, mostly because it is not easy to find a provider that can assure you he supports Drupal a 100%.
Armen
December 28th, 2007
Tell me this, am I the only one who would rather refer clients to a ‘recommended’ host (but ultimately leave the responsibility of decision with them) and include an affiliate link?
I see this as the easiest way, and yet you can still make a little without the hassle. However, I’m fairly inexperienced when it comes to this, so I may be missing something.
fred411
December 29th, 2007
I am a one man shop and currently host about 50 sites for all of clients. It does yield a little profit but am tired of the “always-on-call” aspect. I use a top provider and thier service is great and issues are few. But when there is one, clients want it fixed *now*, whether I’m on vacation, at dinner, or asleep.
The only reason I haven’t moved everyone to another hosting company is I fugure if they have trouble with the other host, they’ll call me first anyway.
If you build the web site, aren’t your clients going to think it’s your problem to fix? And is there a webhost out there that won’t blame a developer first before looking at the server
Jean-Francois Arseneault
December 31st, 2007
I only offer hosting to people I friends/family and people I design websites for. That way, I know what I’m getting into (bandwidth, storage, SLA, QoS, etc) and I can always decline if I think it involves too much risk. I do love the ‘passive income’ aspect, but I will also state I’ve got admin experience with Windows, Linux and OS X, so I felt confortable in offering this service. I also like the fact it makes me a one-stop shop in most cases: design, coding, hosting and domain names.
As mentionned by Gavin, I also ended up helping out anyway, so I might as well get something back for it - and more control, so I know exactly how to install/config my websites/apps.
I’m currently using HostingZoom, on an Advanced Failover plan. 99.6% uptime, can’t complain - great speed too. And tickets (due to a recent massive migration to a new server) are typically answered within 4hrs.
Adam
December 31st, 2007
I work mostly with small-scale clients. If they ask, I’ll mention that I offer hosting and explain the advantages (I’ll set up everything for them is the big one) and disadvantages (I’m honest that if they consider it mission-critical that their site is always up and need to speak with someone immediately if it goes down, they should look elsewhere for hosting). I’m really picky about who I agree to host, and don’t really look at is a way to make money, but more as a way to improve my customer service. I definitely have clients that just want someone to take care of everything, and they keep coming back because I can.
Ben Harper
December 31st, 2007
This market has changed a lot over the last few years. All of you who are dealing with the “always on call” issue might be benefited by a managed service such as mosso. Mosso offers white label billing and white label hosting. It’s a pretty nice service, when the sites are up!
I also think it has a lot to do with what you want to offer your clients and the type of business you run. I can’t imagine being a freelance web professional and not offering hosting. I think it’s an integral part of the web design process.
Jermayn Parker
January 2nd, 2008
I think hosting along with domains names and the website is a nice package. As im in my early stages of my business, the extra from hosting is a nice little softener but handling all the details can get annoying!
Good post and thanks for the other input from others comments.
jj
February 10th, 2008
** Also if you part ways with a client and their new web developer comes knocking on your door asking for hosting account details **
I’ve been the webmaster, webdesigner, server manager, web-everything guy at a company for a few years. I found the hosting company, I managed the domains and the hosting accounts, I developed the webiste and managed email accounts.
Now I am trying to leave that company and they are talking with other people to take my job… However… nobody knows a crap. So, even though “web development” companies say they know everything about it, and even though I have given them *all* the passwords to everything (cPanel, phpMyAdmin, etc), I still have to be the one setting up email accounts and domain redirects, etc.
I think hosting is OK, as long as you know what you’re doing (I hate people selling stuff they know nothing about, they’re a virus in the job market), but keep a “plan” for the day you leave or stop offering the service, or those who you are hosting decide to get a new site with a new developer… Have some contract and clearly state that you host the site as long as you manage everything, but as soon as they want to move on, you give them the keys and it’s *their* problem.
Jason T.
February 26th, 2008
Very great information indeed… I have been thinking hard about this topic, and suffice to say it seems from the above posts, there are more downsides than profit - unless you are well-versed with backend administration, which I am not.
I design a range of small business clients, and while some of them search around and are familiar with the market, there are those other clients who would love nothing better than to have me handle everything. My main concern was making sure I can first, bring enough clients to make a good return on investment, and secondly, making sure I am able to handle those rare but hard hitting problems. I’ll be honest, I was actually preparing and recently purchased a VPS from LiquidWeb, but everyone’s opinions have definitely made me more nervous. I might stick to what I do best…
Ken
March 20th, 2008
I notice from your posts that some people are nervous of the email side of hosting while willing to host the website. We’d prefer to do the opposite as email is what we work at. So if anyone wants to share the hosting with us, we’ll host their customers mail, provide webmail etc, and spam filtering and mail buffering of course, while you host the site.