Re:What do you guys think of the "reseller" hosting business...
by webwright on Sunday June 22, 2008 @01:29AM
(#224074)
It's a commodity business-- very low margins.
It's a marketing driven business... How good are you at lead generation?
It's support intensive. You're essentially losing money every time you talk to your customers.
It's a utility business. You will never hear from your customers unless something is broken, and they'll be enraged that their site isn't up 24x7. If they botch their HTML, they'll blame you. If the have an old version of WordPress and it gets exploited, they'll blame you.
It's LOUSY hours. Stuff breaks at weird times. All upgrades have to happen at weird times.
(I ran a hosting biz for a while as part of my consulting biz. We bought a hosting company, ran it for 2 years, and then sold it-- for a tidy profit. But I would never touch that business again).
It's a marketing driven business... How good are you at lead generation?
It's support intensive. You're essentially losing money every time you talk to your customers.
It's a utility business. You will never hear from your customers unless something is broken, and they'll be enraged that their site isn't up 24x7. If they botch their HTML, they'll blame you. If the have an old version of WordPress and it gets exploited, they'll blame you.
It's LOUSY hours. Stuff breaks at weird times. All upgrades have to happen at weird times.
(I ran a hosting biz for a while as part of my consulting biz. We bought a hosting company, ran it for 2 years, and then sold it-- for a tidy profit. But I would never touch that business again).