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How to Write a Web Hosting Company Business Plan [Sample Template]

Are you about starting a web hosting company? If YES, here is a complete sample web hosting business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a web hosting business. We also took it further by analyzing and drafting a sample web hosting service marketing plan template backed up by actionable guerrilla marketing ideas for web hosting businesses. So let’s proceed to the business planning section.

Why Start a Web Hosting Company?

One good thing about the information age is that there are several business opportunities that come with it and one of them is to start a web hosting company. If you are IT inclined and you have the start – up capital and are also looking at starting a business in the IT industry, one of your best bet is to start a web hosting company. There is indeed a large global market for web hosting companies.

All you need to do to attract client and maximize profits as a newbie in this industry is to ensure that your business is well – publicized, you reduce downtime to the barest minimum and your fees are affordable. To achieve all that is stated above, you should be ready to work hard and smart, hire dedicated and competent employees and above all have a reliable server et al.

The sample web hosting company business plan template below will guide you on how to draft yours with little or no stress.

A Sample Web Hosting Company Business Plan Template

1. industry overview.

It is known fact that the web hosting services industry has come to stay and of course it is one industry that plays key roles not only in the business world, but also in almost all the aspect of what goes around in our world today. This is so because there is hardly any serious minded business or organization or even individual who do not have online presence cum their own website.

The Web Hosting Services industry provides internet hosting services to third party services providers. These services most commonly take the form of website hosting, where industry operators provide leased server space and internet connectivity to individuals and organizations to make their websites accessible over the internet. Players in this industry also provide application-specific services, such as e-mail application hosting and game hosting et al.

Research conducted by IBIS World shows that the demand for the Web Hosting Services industry grew substantially over the past five years due to high demand from companies hoping to expand their online activities and presence. This trend is expected to continue to grow. Most of the employees, management and business owners in the Web Hosting Services industry have worked in complimentary information technology industries.

The Website Hosting Services Industry is indeed a very large industry and pretty much active in all the parts of the world. Statistics has it that in the united states of America alone, there are about 15,225 registered and licensed website hosting companies, responsible for employing about 96,372 and the industry rakes in about $16 billion annually. Going forward, the industry is projected to grow at the rate of 11.2 percent annually. The companies with the lion share of the available market in this industry are Endurance Int’l, GoDaddy.com and web.com.

Over and above, the web hosting service industry is still very much open to any aspiring entrepreneur who has the required start – up capital and technical expertise to start his or her own web hosting company and of course make good money from the industry.

As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition in the industry.

2. Executive Summary

Golden Gates® Web Hosting Co. is a U.S based and world class web hosting services company. We have been able to secure a standard and well – positioned office facility in a central business district in Baltimore, the largest city in Maryland. We are a web hosting company that is set to compete in the highly competitive web hosting services industry not only in the United States market, but also in the global market.

Golden Gates® Web Hosting Co. will provide internet hosting services to third party services providers. We will lease server space and internet connectivity to individual clients and corporate organizations to make their websites accessible over the internet.

We will also provide application-specific services, such as e-mail application hosting and game hosting, security, email and business features, installed web site applications, providing website builder, security and value-added features, and other website hosting related advisory and consultancy services.

Our workers are going to be selected from a pool of talented and highly creative IT experts in and around Baltimore and also from any part of the world as the business grows. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading web hosting companies in the United States and throughout the globe.

We have put plans in place to build a state of the art internet server in Baltimore – Maryland. Our company will be well equipped and we will ensure that we follow the trend in the industry. At Golden Gates® Web Hosting Co. our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Golden Gates® Web Hosting Co. is founded by David Foreman and his friend and business partner for many years Jonathan Cosby. They have combine qualifications and experience in the IT industry and business management et al that will help them build the business to favorable compete in the web hosting services industry.

3. Our Products and Services

Golden Gates® Web Hosting Co. was established with the aim of maximizing profits in the web hosting services industry. We want to compete favorably with leading web hosting companies such as Endurance Int’l, GoDaddy.com and web.com in the United States which is why we have but in place a competent team and equipment that will ensure that meet and even surpass our customers’ expectations.

We will work hard to ensure that Golden Gates® Web Hosting Co. is not just accepted nationally in the United States of America, but also in other parts of the world. Our products and services are listed below;

• Website hosting services
• Website builder products
• Security, email and business features
• Installed web site applications
• Providing website builder, security and value-added features
• Other website hosting related advisory and consultancy services

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class website hosting company whose services and brand will not only be accepted in the United States of America, but also in other parts of the world.
• Our mission is to provide professional and highly reliable website hosting services and other related services that will assist businesses, individuals and non-profit organizations in promoting their brands and reaching out to a wide range of potential customers all over the globe via the internet. We want to build a website hosting company that can favorably compete with other leading brands in the website hosting services industry.

Our Business Structure

Golden Gates® Web Hosting Co. is a website hosting company that intends to   start small in Baltimore – Maryland, but hope to grow big in order to compete favorably with leading website hosting companies, such as Endurance Int’l, GoDaddy.com and web.com et al, in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Golden Gates® Web Hosting Co., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• General Manager
• Human Resources and Admin Manager
• Sales and Marketing Executive
• IT Specialist (5)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

General Manager:

• Serves as project manager of the organization; works directly with employees
• Responsible for designing concepts and contracts
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and IT experts
• Ensures that the organization work in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Golden Gates® Web Hosting Co.
• Serves as internal auditor for Golden Gates® Web Hosting Co.

IT Specialists (5)

• Liaises with clients to determine their requirement and budget
• Handles website hosting services
• Handles website builder products
• Handles security, email and business features
• Installs web site applications for clients
• Responsible for providing website builder, security and value-added features
• Handles other website hosting related advisory and consultancy services
• Responsible for Optimizing Website Functionality for owners of existing websites
• Responsible for Search Engine Optimization Services and Code Writing Services
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the general manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard and world – class web hosting services company, we were able to employ some of the finest business consultants in the United States of America to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard and world – class web hosting services company.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Baltimore – Maryland. Here is a of what we got from the critically conducted SWOT Analysis Golden Gates® Web Hosting Co.;

Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient web hosting cum IT experts, a team with excellent qualifications and experience various niche areas in the website hosting service industry.

Aside from the synergy that exists in our carefully selected website hosting cum IT experts, we have state of the art serve that will guarantee minimal downtime and our services will be guided by best practices in the industry.

As a new website hosting services company in Baltimore – Maryland, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive website hosting services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the website hosting services industry is massive considering the number of individuals and corporate organizations whose businesses depends on the services of website hosting companies. As a website hosting Services Company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new website hosting companies in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

It is obvious that as more big players like Amazon and others move in to the web hosting services industry; it now becomes pretty important for smaller website hosting companies to have strong partnerships. Affiliate and reseller relationships are becoming a mainstay of how these businesses profit, as a number of small to medium sized website hosting companies become bundlers for the specific services packages needed by small business users and online companies.

So also, competitive pricing, niche specific approaches, and excellent service will all play a key role in this industry as smaller website hosting business continue to compete and grow. Some key stake holders in this industry do envisage that hosting companies will actually phase out their own infrastructure altogether in favor of acting as straight resellers with lower infrastructure costs and therefore higher margins for Amazon and other larger players.

Going forward, prices are likely to increase as website hosting services companies lay differentiation and additional services on top of existing hosting plans. Another important trend in this industry is the degree to which individual website hosting providers are able to do so in an automated way that minimizes the need for human intervention.

The more automated this process is, the higher margins will be on individual accounts. As a consumer, it’s helpful to understand how efficient your potential host’s processes are in this respect – it will save you tremendous amounts of aggravation when an issue does occur.

Like every other IT related services, website hosting services is continually evolving. Technologies are changing and improving with rapid astonishment, and as a result the technological boundaries of hosting are being pushed as well to meet the ever changing demand.

This creates opportunities for consumers: not just to search for the cheapest hosting deal or the most flexible hosting model, but to think about what kinds of business models they want to support and whether or not they need specific features in their packages.

Lastly, customers are also becoming savvier with respect to potential security issues connected with the cloud. As a result, website hosting companies are developing stronger communications around this issue in the form of copy, collateral, and training et al for their sales and marketing teams.

The need to fight malware and abuse is a major theme affecting all kinds of website hosting companies, not just the cloud hosts. Continuing investments and upgrades in this area remains a major concern for website hosting companies.

8. Our Target Market

Before starting our website hosting company, we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without the services of website hosting services companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that our website hosting services is well accepted in the market place.

Below is a list of the people and organizations that we have specifically market our products and services to;

• Website Designers and IT Specialists
• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Manufacturers and Distributors
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Celebrities, Politicians, Public Figures and Public Speakers
• Sport Organizations
• Religious Organizations
• Political Parties
• Television Stations
• Printing Press (Publishing Houses) and Authors
• Branding and Advertising agencies
• Entrepreneurs and Start – Ups

Our Competitive Advantage

Surviving in the business world as a website hosting services industry requires more than, your expertise, knowing how to deliver standard website hosting jobs but also how to network with key people that matters; decision makers that can decide who will get a website hosting contract.

Without a shadow of doubt, there are loads of big time investors, that have a stake in the website hosting services industry; but one thing is certain, there is room big enough to accommodate both the big website hosting services companies and the small website hosting services companies. All smaller website hosting services companies need to do to survive in the industry is to concentrate on providing website hosting services to small to medium scale businesses.

We are quite aware that to be highly competitive in the website hosting services industry means that you are not only expected to be able to deliver consistent and highly reliable and pocket friendly websites hosting services, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient web hosting cum IT experts, a team with excellent qualifications and experience various niche areas in the website hosting service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups website hosting services businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Golden Gates® Web Hosting Co. is established with the aim of maximizing profits in the website hosting services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Golden Gates® Web Hosting Co. will generate income by offering the following website hosting related services;

10. Sales Forecast

One thing is certain; there would always be corporate organization and individual who would need the services of website hosting services companies.

We are well positioned to take on the available market in website hosting services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our website hosting Services Company to enviable heights.

We have been able to critically examine the website hosting market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Baltimore – Maryland.

Below is the sales projection for Golden Gates® Web Hosting Co., it is based on the location of our business and of course the wide range of our services and target market;

• First Year-: $240,000
• Second Year-: $550,000
• Third Year-: $950,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same web design services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competitions in the website hosting services industry hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the website hosting services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Golden Gates® Web Hosting Co.

Our corporate goal is to grow Golden Gates® Web Hosting Co. to become one of the top 10 website hosting services brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.

Golden Gates® Web Hosting Co. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our website hosting Services Company by sending introductory letters alongside our brochure to individuals, website designers, corporate organizations, religious organizations and key stake holders.
• Promptness in bidding for website hosting contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent and reliable services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our website hosting services company.

Below are the platforms we intend to leverage on to promote and advertise Golden Gates® Web Hosting Co.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Baltimore – Maryland.
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Golden Gates® Web Hosting Co. and the services we offer
• List our website hosting services company in local directories/yellow pages
• Advertise our website hosting Services Company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Golden Gates® Web Hosting Co. we will keep the prices of our website hosting services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services.

In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Golden Gates® Web Hosting Co. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Golden Gates® Web Hosting Co. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via POS
• Payment via mobile money platform
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our website hosting services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a website hosting services company; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Golden Gates® Web Hosting Co. in the United States of America;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
• The total cost for hiring Business Consultant – $5,000.
• The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
• The total cost for leasing facility for the business – $150,000.
• The total cost for facility remodeling – $50,000
• Other start-up expenses including stationery, business cards and signage et al – $2000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for purchase of standard and world – class reliable internet server- $100,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Projectors, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand ( 350,000 ) U.S. dollars to successfully set – up a medium scale but standard website hosting services company firm in the United States of America.

Generating Funding/Startup Capital for Golden Gates® Web Hosting Co.

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as website hosting services company. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Golden Gates® Web Hosting Co. is a private – partnership business that is solely owned and financed by David Foreman and his friend and business partner for many years Jonathan Cosby. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Golden Gates® Web Hosting Co. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our website hosting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Golden Gates® Web Hosting Co. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our company: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Building a standard and world – class internet server: In Progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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A web host provides the server space where your e-commerce website and its files, like text and photos, are stored. It's also home to your domain's email addresses. Choosing the right web host can determine how fast your website loads, what happens if there’s an unexpected surge in website traffic and how hacking attempts are thwarted.

Many e-commerce website builders include web hosting in their subscription packages, and some can also help you acquire a domain name. In general, we recommend choosing built-in web hosting if it’s available — especially if your digital skills are limited.

But if you’re using an open-source online store builder or your provider’s built-in offering doesn't meet your needs, you’ll have to find your own web hosting. Here are our top choices.

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Best web hosting for small business at a glance

Bluehost: best web hosting service for woocommerce users.

Bluehost offers affordable web hosting solutions, including a free domain name when signing up for some of its one-year plans. It also offers dedicated e-commerce web hosting plans for WooCommerce users, which are designed to support features like including online payments, gift cards, appointment booking and product wishlists.

WooCommerce is an open-source online store builder that runs on WordPress. Here’s how WooCommerce stacks up against Shopify , another leader in this space.

Here are Bluehost’s starting plans for small e-commerce businesses:

Online store: Starts at $9.99 per month. This hosting plan supports WooCommerce on WordPress. It comes with 100GB of storage, one year of a free domain, a free SSL certificate, malware scanning and daily website backups. 

Email: Starts at $3 per month per address. Access to Google Workspace includes Google Drive, Google Meet videoconferencing and Google Calendar.

IPage: Cheapest small-business web hosting

IPage offers unlimited file storage and unlimited bandwidth on all its plans, which start at $1.99 per month. You’ll also get a free domain name for a year, unlimited email addresses and an SSL certificate.

To use iPage for more than hosting — like building your website or tracking your inventory — you’ll have to upgrade to a costlier plan. A dedicated e-commerce platform may be more useful in that case.

Here are iPage’s options for small-business web hosting:

Web hosting: Starts at $1.99 per month. This shared hosting plan comes with no limits on storage or bandwidth, although iPage may intervene if your website uses an outsized amount of either. It also includes a free SSL certificate, free domain for a year and email hosting. 

Email: Unlimited addresses included in all plans. You can upgrade to Google Workspace starting at $7.20 per month.

» MORE: 4 ways to protect your small business from cyberattacks

Namecheap: Best for drag-and-drop website building

As the name suggests, Namecheap sells web hosting and domain names at low cost. Plans start at less than $5 per month and include a free domain name for the first year. Plus, you can use Namecheap to actually build a website.

Here are Namecheap’s starting plans for e-commerce businesses :

Stellar Business: $4.98 per month. Provides 50GB of storage, unmetered bandwidth, a free SSL certificate and one year of a free domain name. Backups run automatically, with formal backups twice a week. Users have access to a drag-and-drop website builder, too.

Email: Starts at $1.24 per month per email address. The Starter plan includes one mailbox and up to 5GB of storage. For more addresses or mobile support, you’ll need to upgrade. 

InMotion: Best for VPS hosting

VPS stands for “virtual private server.” That means your website gets dedicated space on your host’s server — rather than having to share that space with other websites, which is what “shared hosting” means. If shared hosting is reserving a table at a restaurant and counting on it to be available, then VPS hosting is like reserving a private party room.

InMotion offers seven different VPS hosting plans. They all include built-in redundancies to keep your website online, protection against DDoS attacks, servers optimized for PCI compliance and free SSL certificates.

Plans range from $14.99 per month to $74.99 per month. More expensive plans include unlimited bandwidth, additional storage and memory, phone support, and extra dedicated IP addresses.

HostGator: Best for dedicated server hosting

If VPS hosting is a private room, then a dedicated server is like renting out a whole venue. Your website doesn’t have to share a server with any others.

For most small businesses, shared or VPS hosting is probably sufficient. But dedicated server hosting may be useful if:

Your website is repeatedly lagging.

All your files and images aren’t loading properly.

You’re running out of storage space. 

You’re particularly worried about being hacked. 

HostGator offers three dedicated hosting plans, starting at $89.98 per month. The introductory Value plan offers 1TB of storage space — equal to 1,000GB — plus 8GB of RAM and unmetered bandwidth. All plans include DDoS protection, scheduled and manual backups, and a fully redundant network.

You can tack Google Workspace — including email — onto a HostGator plan for $6 per month and up.

Cloudways: Best for cloud-based web hosting

Cloud hosting doesn’t rely on a single physical server like the other options on this list. Instead, your website’s data will be stored across a network of multiple servers virtually.

Most small businesses probably don’t need cloud hosting, but you may want to consider it if:

You expect your business to scale very quickly.

You want an extra layer of data backup.

You’re worried about very large amounts of traffic impacting your website’s performance.

Cloudways gives you the option to choose from three different cloud servers: DigitalOcean plans start at $14 per month, AWS plans at $36.56 per month, and Google Cloud plans at $37.45 per month. All Cloudways plans include 24/7 support, free SSL certificates, free migration, unlimited application installation, dedicated firewalls, automated backups, regular security patching and real-time monitoring. There’s no cap on monthly visits.

» MORE: 16 e-commerce business ideas

How to choose the best web hosting for your small business

It can be complicated to compare web hosting services without significant technical knowledge. For the smallest businesses, most web hosts offer plenty of storage and sufficient security tools, and they can handle the traffic you’re likely to see.

But if you’re running a large retailer or a medical practice that has to store sensitive client information, you may need to spend a lot more on a web hosting provider. You may also want to invest in other best practices, like regular offline data backups and cybersecurity insurance .

Do the following when choosing the best web hosting for your business:

Consider your built-in option. Many e-commerce platforms come with web hosting that includes SSL certificates and, sometimes, a free domain name for at least a year. If that option is sufficient for your business, there’s no need to spring for a separate web hosting service.

Evaluate your storage and bandwidth needs. The biggest factor in your web hosting costs will probably be how much server space you need. If your business website includes lots of high-resolution photos and videos, you’ll likely need more space. But if your website is largely text-based, you may be able to get by with less.

Weigh your security options. An SSL or TLS certificate encrypts communications between your website and others and is an essential cybersecurity step for businesses that store customer information. DDoS protection can help guard your website against hacks that threaten to take it offline, though these are less common.

Decide what type of hosting you need. Shared hosting is sufficient for many small businesses, especially those with relatively limited bandwidth and storage requirements and straightforward security needs. But if you want to hedge against downtime or hacking risks, you may want to learn more about VPS and dedicated server options.

Note the cost of email accounts. Some web hosting companies charge for each additional email address, which can start to add up if you have a large team. 

Consider your future growth. If you don’t need much support now but anticipate lots more customers — and lots more customer information — in the future, look for a web hosting company with multiple service tiers so you can upgrade when you need to. 

A version of this article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Start a Web Hosting Business in 14 Steps (In-Depth Guide)

Updated:   February 9, 2024

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The global web hosting industry is constantly growing. As of 2022, the market reached $94.64 billion , with an estimated compound annual growth rate (CAGR) of 20.3% between 2022 and 2023. This makes it an excellent time to get involved in web hosting.

A hosting business can provide value by offering secure servers, top-notch uptime guarantees, and excellent customer support. The key is to identify a profitable niche, differentiate your services, and market effectively to attract and retain customers.

This guide will walk you through how to start a web hosting business. Topics include market research, sourcing equipment for your own web hosting business, registering an EIN, purchasing business insurance, and more.

1. Conduct Web Hosting Market Research

Market research is important to anyone hoping to start a business in reseller hosting. Market research offers insight into your target market, local market saturation, trends in web hosting services, and more.

Some details you might learn through your market research include:

• Driving this growth is rising internet penetration and web usage.
• There were over 4.9 billion internet users worldwide in 2021, up from 4.1 billion in 2019 per Statista .
• Global website traffic is expected to double from 2021 to 2022.
• As more people access the web, demand for hosting services rises.
• .Managed hosting provides more robust services for larger, complex sites.
• Specializing can differentiate a new hosting business. For example, focusing on eco-friendly hosting, specialized software platforms like WordPress , or high-security hosting for sensitive data.

In summary, the hosting industry is expanding rapidly driven by rising global internet usage. While competitive, opportunities exist for niche or specialized new providers. Offering value through services like managed hosting and outstanding customer experiences can enable a startup to gain market share.

2. Analyze the Competition

Understanding the competitive landscape is crucial for any new web hosting provider. Performing thorough competitor analysis can reveal opportunities and help position your business.

Some ways to research local competition as a reseller hosting business, include:

Identify direct competitors, the main established web hosting companies.

Examine their market share using data from Datanyze and BuiltWith . Review their features, pricing, and target customers.

Analyze their website content, branding, and publicity to see their positioning.

Study their web traffic growth using SimilarWeb to gauge traction.

Evaluate competitors on key metrics like server uptime, page load speeds, support response times, and customer satisfaction.

Tools like UptimeRobot and GTmetrix can benchmark performance.

Monitoring social media and review sites reveals common complaints and flaws.

For local competitors, visit their physical premises if applicable.

Assess their location, branding, in-store displays, and marketing.

Search online directories like Yelp to see customer feedback.

Thorough competitor research illuminates the competitive landscape and uncovers the best positioning for a new web hosting business to gain market share. Regular monitoring provides insight into industry trends and opportunities.

3. Costs to Start a Web Hosting Business

Starting a web hosting business requires significant upfront investment and ongoing operating expenses. Based on industry research, here are typical costs to estimate.

Start-Up Costs

• Business registration fees – $50-$500 depending on location and business structure
• Website development – $5,000-$15,000 for website design and content creation
• Servers and hardware – At minimum $5,000 for basic servers, likely $15,000-$50,000+ for enterprise-grade setup
• Data center colocation fees – Around $1,000 per month for rack space, internet bandwidth, etc. if not using own infrastructure
• Office space – For 10 employees, approx $3,000-$5,000 monthly rent depending on location
• Salaries – 1 technical operations manager ($80,000/year), 1 account manager ($50,000/year), 1 salesperson ($40,000/year), 2 support staff ($35,000 each) = $275,000 annually
• Software licenses – $1,000-$5,000 for critical programs like WHM/cPanel, billing systems, support ticketing platforms
• Legal fees – $3,000+ for lawyer fees to review business structure, contracts, and service terms
• Marketing budget – $20,000-$50,000+ for branding, advertising, SEO to launch
• Misc office equipment – $3,000-5,000 for computers, phones, furnishings

So an estimated $70,000-$150,000+ in start-up costs before launch. Sufficient operating capital must be secured to cover these expenses, inventory, and salaries for 6+ months until revenue ramps up.

Ongoing Costs

• Servers/infrastructure – $5,000-$15,000+ monthly for equipment leases, maintenance, upgrades
• Datacenter fees – $1,000-$5,000 monthly depending on traffic demands
• Staff payroll – Around $23,000 monthly for the initial team above
• Office rent and utilities – $4,000-$8,000 per month
• Software subscriptions – $500-$2,000 monthly
• Marketing and advertising – $5,000+ monthly, higher initially
• Insurance – $2,000-$5,000 monthly

So estimated recurring costs of $40,000-$60,000 per month. Additional customer support staff will be required to scale, increasing personnel costs. Servers and bandwidth need to continually expand to support customer growth.

4. Form a Legal Business Entity

When starting a web hosting business, the legal structure you choose impacts liability, taxes, and ease of management. The main options each have advantages and drawbacks to weigh.

Sole Proprietorship

This is the simplest structure where you directly own the business as an individual. Setup only requires registering a business name and obtaining licenses, costing $50-$150 total. Pass-through taxation means avoiding corporate taxes and personally reporting income and losses on your tax return.

Partnership

A partnership splits ownership between 2 or more individuals. This helps raise investment capital and combines complementary skillsets. A partnership agreement outlines profit/loss distribution and member roles and rights. You must file a partnership certificate with your state for $50-$500.

Taxation passes through to members. However, just like sole proprietors, partners assume full unlimited liability. The actions of one partner legally implicate the rest, risking everyone’s assets. The shared liability makes partnerships an unstable choice for web hosting businesses open to expensive lawsuits.

Limited Liability Company (LLC)

LLCs limit owner liability and allow pass-through taxation without corporate taxation if structured as a sole member LLC. Multi-member LLCs offer liability protection and flexibility for web hosting co-owners to divvy up ownership stakes, voting rights, and cash distributions in an operating agreement.

LLC setup does cost more around $500-$1500 including state registration fees but limits legal exposure. Unless engaged in misconduct, LLC owners are only liable up to their investment stake for any legal judgments.

Corporation

Registering as a state corporation creates a legal entity separate from its owners. “C-corps” face double taxation – once at the corporate rate and again when distributing dividends. Formal requirements like annual meetings and reporting add complexity not suitable for smaller web hosting companies. Overall LLCs provide the best mix of liability protection, pass-through taxation, and ease of management for most hosting providers.

5. Register Your Business For Taxes

An Employer Identification Number (EIN) is a unique 9-digit number that identifies your business to the IRS and state tax authorities. All web hosting businesses need an EIN to handle key tax duties like paying payroll taxes, opening business bank accounts, and filing tax returns.

You can easily apply for an EIN for free from the IRS in minutes:

First, go to the IRS EIN Assistant and answer a few short questions about your business structure and ownership.

Next, you’ll be asked for information like your name, address, Social Security number, and business name and address.

After submitting, you’ll instantly receive your EIN at no cost. The entire online application process takes less than 15 minutes.

Once you have your EIN, make sure to register with your state taxation department for sales tax collection permissions and reporting.

Having an EIN establishes your web hosting business as a legal tax entity. It provides credibility with partners and allows entering necessary contracts and agreements. Some key uses include:

• Paying employees and contractors and reporting payroll taxes
• Opening a business bank account and applying for financing/loans
• Filing quarterly and annual business tax returns
• Registering a domain name in your business name
• Establishing business credit to make large purchases

Obtaining an EIN only takes a few minutes online. It unlocks essential capabilities for your hosting business like payroll, banking, and taxes. Along with sales tax registration, an EIN legitimizes your business and enables growth. Don’t wait to apply through the quick and free IRS process.

6. Setup Your Accounting

Managing finances is critical for any web hosting business.

Accounting Software

With many transactions like customer billing, infrastructure costs, and payroll, using accounting software like QuickBooks can automate tracking income and expenses. This saves significant time on bookkeeping and simplifies tax preparation.

Software like QuickBooks seamlessly syncs with bank and credit card accounts to log transactions and generate financial reports. Features like invoicing, profit/loss statements, and cash flow projections provide real-time visibility. Cloud-based access enables securely managing finances anywhere.

Hire an Accountant

While programs like QuickBooks streamline much financial management, partnering with an accountant still provides significant value. They can handle tasks like:

• Setting up QuickBooks and training on best practices
• Performing monthly reconciliations to identify discrepancies
• Preparing and filing quarterly sales tax returns
• Compiling documentation for annual tax filing
• Providing audit support if ever IRS-reviewed

Expect to pay an accountant around $1,000-$3,000 annually for basic bookkeeping assistance, plus $500-$2,000 for year-end tax preparation. More complex needs incur higher costs but save substantially on potential IRS penalties from errors.

Open a Business Bank Account

Separating personal and business finances is crucial. Mixing expenditures invites IRS scrutiny and headaches unwinding things later. Open a dedicated business checking account to pay hosting expenses, employee payroll, and accept customer payments.

Apply for a Business Credit Card

Secure a business credit card for larger purchases. As a new entity, expect starter limits around $1,000-$5,000. However, diligent repayment and reliable revenue will enable higher limits over time. Avoid the risk and confusion of mingling personal and business spending.

7. Obtain Licenses and Permits

Before launching, web hosting companies must register for several critical licenses and permits. Find federal license requirements through the U.S. Small Business Administration . The SBA offers a local search tool for state requirements.

• Business License: Nearly all states require obtaining a general business license to legally operate. Fees are typically $50-$100 annually.
• Fictitious Name Filing: If using a DBA (“doing business as”) name different than your legal business name, register it via a fictitious business name filing.
• Domain Name Registration: Your hosting business needs an official domain name for its website and email. Register your chosen domain with ICANN-accredited registrars like GoDaddy or Namecheap for around $12-$15 annually.
• Business Insurance: Obtain general liability insurance covering costs if customers sue for property damage or injuries somehow tied to your business.
• Utility Permits: If constructing your data center infrastructure, obtain permits for bringing in electricity, internet cables, phone lines, and other utilities.
• Fire Safety Permit: If locating computer servers onsite rather than a leased data center, obtain a permit for having so much electronic equipment.
• Food Service Permit: If providing snacks, drinks, or meals for employees, get appropriate food service permits from your local health department.
• Zoning Approvals: Confirm your office or data center location complies with zoning ordinances for permitted property uses. Technical operations like server hosting are prohibited in some residential or industrial zones. Zoning certification shows you’ve verified compliance.

Adhering to all required licenses and permits protects your web hosting business and proves you are committed to safely and legally operating. Display certificates prominently in your office space and on your website to build customer trust.

8. Get Business Insurance

Carrying proper insurance is crucial to limit a web hosting business’s financial risks. Without coverage, just one significant lawsuit or disaster could bankrupt the company.

Some scenarios that could financially ruin an uninsured hosting provider:

• A major outage from a server failure results in massive customer losses and a class action lawsuit seeking millions in restitution.
• A fire destroys your data center and equipment. Rebuilding and replacing infrastructure without insurance would require immense cost.
• Your business is held liable when a customer’s insecure site spreads malware that damages thousands of computers.

General liability insurance helps cover legal judgments so these situations don’t sink the business. Policies start around $500-$1500 annually based on revenue and coverage limits.

Cyber liability insurance is also essential to cover hacks, breaches, and digital threats. Expect premiums of $1200+ per year.

The process of obtaining business insurance involves:

• Research providers like The Hartford and request quotes.
• Choosing a policy with sufficient coverage limits for your needs and risk tolerance.
• Completing the insurer’s application detailing your business operations, revenue, payroll, etc.
• Paying required premiums monthly, quarterly, or annually.
• Receiving proof of insurance documentation from the provider.
• Displaying insurance certificates on your website and office to build trust.

Adequate insurance reduces the existential threat lawsuits and disasters pose to your web hosting business. The peace of mind and financial protection make insurance a wise investment that can save your company.

9. Create an Office Space

Having a professional office space lends legitimacy when meeting clients and investors. It also improves productivity compared to working from home. Options for a hosting business include:

Home Office

Working from a home office minimizes costs, with no rent or commute. However, it looks less credible to customers. Zoning laws may also prohibit customer-facing uses. While feasible when starting, most web hosting firms will soon need a proper office. Expect costs of a few hundred dollars for basic office furniture and supplies.

Coworking Space

Coworking spaces like WeWork provide an office environment with amenities like meeting rooms, snacks, and networking events. They offer flexibility to upgrade offices as you grow. Average monthly costs range from $200-$500 per desk in a shared space or $1000-$3000 for a private office.

Retail Office

If also operating a web design agency, a retail office space could allow walk-in customers. Storefront visibility in a high-traffic area can boost marketing. However, long-term leases and remodeling costs are high. Expect $2000-$8000 monthly for 1,000-3,000 square feet.

Commercial Office

Leasing office space in a business park or office tower conveys professionalism for a hosting company expecting investor and client visits. With office configurations available for teams of all sizes, it also supports growth. Average monthly per-desk rates are $400-$1200.

10. Source Your Equipment

Launching a web hosting company requires significant investment in servers and hardware infrastructure. New entrepreneurs have options to buy, lease, or rent the necessary equipment:

Top-of-the-line servers and networking gear can be purchased new from vendors like Dell , HPE , and Cisco . Buying the latest models ensures optimal performance and support. However, costs are high, easily $50,000 for enterprise-grade infrastructure.

To save substantially on costs, used servers and hardware can be purchased for 30-50%+ less than new. eBay, Craigslist, and liquidation sites like Liquidation sell quality refurbished gear. Be sure to benchmark specs and test thoroughly before purchase.

Rather than a large upfront capital investment, servers, and hardware can be rented every month. Providers like ServerSupply offer short-term server rentals starting around $150/month. This enables scaling up gradually as customer demand grows. However, long-term costs may exceed buying over time.

Leasing through vendors provides access to cutting-edge hardware via yearly contracts. Rather than owning equipment, you pay a fixed monthly fee for usage, maintenance, and upgrades. Companies like Agility Lease provide attractive flexible terms for startups.

11. Establish Your Brand Assets

Creating a distinctive brand is crucial for any new web hosting company to stand out and attract customers in a competitive market. Developing professional branding assets conveys credibility and consistency.

Get a Business Phone Number

Having a dedicated business phone line instead of just a personal cell phone makes your company seem reputable and established. Services like RingCentral provide toll-free and local numbers with customizable greetings and routing to mobile devices for as little as $30/month.

Design a Logo

A unique, memorable logo also goes a long way in building brand recognition. Consider creative logo styles that illustrate your positioning, like an abstract cloud icon for a hosting provider emphasizing security. Logo design sites like Looka make it easy to generate customized options for around $50-$150.

Print Business Cards

Business cards featuring the logo are vital for networking and sales meetings. Expect to exchange cards regularly at conferences, trade shows, or even just hosting meetups. Sites like Vistaprint offer affordable, high-quality card printing with design templates.

Buy a Domain Name

A domain name matching your brand name cements your identity online. For example, YourCompany.com feels more established than a random domain. When purchasing from registrars like Namecheap , prioritize short, simple domains consisting of your brand name.

Design a Website

An eye-catching, modern website that represents your visual branding is expected in this digital age. Anyone can easily build a site themselves using drag-and-drop platforms like Wix with SEO optimization features built-in. For more complex designs, professional web developers can be hired affordably on sites like Fiverr starting at just $500.

12. Join Associations and Groups

Joining local professional associations, meetups, and online groups provides invaluable connections when starting a web hosting company. Surrounding yourself with others in the industry gives access to advice, partners, and new business opportunities.

Local Associations

Look for a local chapter of industry associations like the Internet Service Providers Association (ISPA) which advocates for hosting providers on policy issues. The ISPA offers conferences, training, research, and networking events to help new companies get established.

Your local Chamber of Commerce likely has committees or networking events for tech professionals to exchange ideas and leads. These facilitate meeting fellow entrepreneurs and learning best practices.

Local Meetups

Attending regional hosting and cloud computing conferences allows for connecting face-to-face with key industry figures and potential partners. Exhibiting or sponsoring establishes your brand presence.

Meetup features countless tech meetups in most major cities on specialized topics like server management, DevOps, cybersecurity, and more. Consistently participating can build valuable personal connections leading to referrals.

Facebook Groups

Relevant Facebook groups like Web Hosting, Web Design and Development, and Web Hosting Services & Domain Marketing enable crowdsourcing advice on everything from data center contractors to marketing tactics from thousands of experienced peers.

13. How to Market a Web Hosting Business

Effective marketing is imperative if you want to own your own hosting business. Marketing helps a hosting service acquire customers in a competitive market. While referrals from satisfied clients are hugely impactful, you must also execute promotional initiatives to build awareness and demand.

Personal Networking

Leverage your personal and professional network when launching. Offer free hosting credits to colleagues to get testimonials. Run promotions for connections to try your services and spread the word that you offer services as a web host manager. Word-of-mouth marketing from those who know and trust you sparks growth.

Digital Marketing

Digital marketing efforts should take priority given the tech-savvy target customer base. Useful tactics include:

• Search engine optimization to rank highly for relevant hosting keywords. Provide helpful blogs/content that brands you as an authority.
• Pay-per-click ads through Google Ads and Bing Ads targeting those searching for hosting services. Test different keywords and landing pages.
• Facebook and Instagram ads to reach engaged local audiences. Target business owners with helpful content and limited-time discount offers.
• Launching social media channels on YouTube, Twitter, and LinkedIn to publish tutorials, thought leadership content, and interact with potential customers.
• Email marketing to contacts segmented by location, package type, and account history to personalize communication. Send promotions and helpful tips.
• Affiliate partnerships with related companies to cross-promote services and share revenues from customer referrals.

Traditional Marketing

Traditional marketing can augment digital efforts:

• Print mailers to businesses advertising your services and a free trial. Target companies likely need robust hosting.
• Local newspaper ads touting your competitive differentiators like support response time or 100% uptime guarantee.
• Radio spots briefly explain your services and current promotions. Useful for raising local awareness.
• Billboards on high-traffic roads viewing your office or data center. Brand awareness starts with visibility.
• Attending local business expos and conventions to network and promote offerings.

With both digital marketing and selective traditional tactics, new hosting providers can effectively attract customers, showcase expertise, and build a powerful brand.

14. Focus on the Customer

Providing exceptional customer service is crucial for any web hosting company to retain clients and generate referrals in a crowded market. With so many competing options, your support experience becomes a key differentiator. Some ways to support customers as a web hosting manager include:

• Offering 24/7 support availability reassures customers their issues will be quickly resolved during website outages or server problems.
• Providing multiple contact options like phone, live chat, and email ensures convenient accessibility.
• Investing in comprehensive staff training enables accurate troubleshooting and empathetic interactions.
• Customers will appreciate agents who truly listen and understand their needs.
• Measuring customer satisfaction via surveys and reviews identifies areas for improvement.
• Being transparent about ongoing issues while providing frequent updates demonstrates accountability. Customers will have faith you’re actively working to restore service.
• Compensating for downtime with credits or refunds shows you value customers first, not just profits. This generates immense goodwill and positive word-of-mouth.
• Surprising and delighting customers also earns loyalty.

Providing an outstanding customer experience takes continuous effort but pays dividends for web hosting providers. Customers are your best promoters when you meet their needs empathetically. Excellent service deserves referrals.

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10 best website hosting services of 2025

If you’ve ever spent time choosing a web host, you know how prolonged a task it can be. With so many web hosting options out there, finding the right one when you create a website can take time. Ultimately it comes down to what type of hosting you need, the specific features you want and your budget. And even then, it can still be hard to decide.

In order to make the search for the right web host easier, we’re going to explore 10 of the best available. We’ll also detail the key components of each of these hosted services and what sets them apart from the competition.

Here’s our list of web hosting platforms for your small business website both now and as it scales:

InMotion Hosting

Interserver

Best web hosting platforms for small business

01. wix.com.

Wix offers multi-cloud web hosting when you create a site. It doesn’t matter if you’re looking into building a website for your small business, professional agency or enterprise, Wix has both the website builder and the reliable hosting to get any site up and running. With multi-cloud hosting utilizing AWS, Google Cloud—complete with Wix’s private data centers—and a network of Fastly CDN’s, Wix hosting is reliable and hassle-free. With this in mind, let’s take a closer look at what makes it’s infrastructure and its hosted services really stand out.

Reliability: There’s no 100% guarantee when it comes to this, but 99.9% uptime comes pretty close. With its international infrastructure—including over 200 CDN nodes located around the world—Wix’s hosting delivers global coverage. The reliable hosting service you'll get with your Wix site delivers the type of infrastructure that leaves you free to focus on starting your business , and then managing it, rather than your hosting.

High resilience : Outages happen, servers go down, but what makes the difference is how fast and effectively your web hosting platform responds. Wix’s War Room, yes we love that name too, works 24/7 handling outages or attacks. This means they preempt issues before they can even impact your site. In the event something should happen, they deploy swiftly to get your site back up again.

Hassle-free : With Wix features , free web hosting is hands off from your side. From security monitoring, to preventing web server downtime, to connecting your SSL certificate—Wix takes care of it all, so you don’t have to expend valuable time and resources. Since you already know your Wix website is securely hosted, you can focus on your business needs. For example, connect your own custom registered domain name and personalized business email address to streamline communication and day-to-day operations, or create a simple RSS feed for your blog. It's a complete managed hosting solution.

Check out this list of best business websites to get you started with your inspiration.

Read Also: How to start a business

Highlight: With secure and reliable multi-cloud web hosting an integral part of its website builder, Wix is one of the best all-round web platforms for business out there.

Price : Free to $500/month

Bandwidth : 500MB to unlimited

Storage : 500MB to 50GB

02. Bluehost

Bluehost is a website hosting platform that offers an assortment of plans for a range of needs. Its plans are broken down into shared hosting, VPS (virtual private server) and dedicated hosting plans. While a majority of small business websites will fall into the shared hosting option, Bluehost offers flexibility for larger-scale websites. From a simple site to an advanced, demanding corporate website, there’s a plan for everyone.

This is a host that also integrates with Wordpress, so you can choose from dedicated plans for that platform as well. However, with such a range of plans available, it can make it an overwhelming choice, especially if you’re new to the world of hosting.

Highlight : The flexibility of Bluehost’s hosting plans makes them a trusted web hosting platform for small business.

Price : $8 to $210/month

Bandwidth : Unmetered for shared hosting

Storage : 50GB to unlimited

03. HostGator

HostGator is a name that’s been in the website hosting game for a very long time. Not only does it offer shared, VPS and dedicated hosting similar to Bluehost above, but it also has hosting plans that include a drag and drop website editor for easy site creation. It’s not free to use like Wix’s, but it definitely has some leverage against several of its competitors.

One benefit that you’ll get with HostGator is that even the basic plans offer unmetered storage and bandwidth. Which makes the future scalability of your site one less thing to worry about.

Highlight : HostGator is a good option for someone who wants a user-friendly web hosting for small business solution, with generous storage and bandwidth.

Price : $6.95 - $289/month

Bandwidth : Unmetered

Storage : Unlimited

04. GoDaddy

GoDaddy has been around since the late ‘90s, when it entered the market with its domain purchasing plans. Now, in addition to website hosting, GoDaddy also offers advanced DNS management and easy website building tools.

Highlight : People flock to GoDaddy because of the variety of features and services it offers. This makes it a good option if you don’t know what you need in terms of your web hosting for your small business.

Price : $7.99 - $349.99/month

Storage : 100GB - unlimited

05. InMotion Hosting

InMotion Hosting gets high marks across the board thanks to its wide variety of basic and professional hosting plans, including VPS and dedicated server hosting. Its combination of choice, different price options and enhanced security make it a solid web host choice. If you need a website, it offers a drag and drop website builder add-on, BoldGrid, through WordPress.

Highlight: While there isn’t one particular thing that makes InMotion Hosting a dramatic standout among the others, it’s still a great option for small businesses that earns some points for its variety of hosting options.

Price : $6.39 - $559.99/month

06. Hostinger

If paying a low price is your number one priority, look to Hostinger. While its prices are generally standard, you can sometimes find some impressive discounted basic shared hosting plans for under $1/month.

Like many other web hosts, Hostinger also offers standalone email hosting, allowing you to connect the different parts of your business.

Highlight : Hostinger’s sales are something to look out for, but even without them, it’s still a good, middle of the road web host for small businesses.

Price : $2.15 - $300/month

Bandwidth : 100GB - Unlimited

Storage : 10GB - 400GB

07. InterServer

InterServer is another well-rounded web host that offers a lot of value with its basic plans. More advanced plans, for larger scale websites, are also available.

In addition, InterServer boasts a free website builder. However, their WYSIWYG (what you see is what you get) editor is only free when you purchase one of their standard plans, so there’s no way to create and maintain a website completely for free.. This differs from other site builders, such as Wix, where you can create and run a free site.

Highlight : InterServer is a decent web host for small businesses with some solid pricing options for basic websites.

Price : $4 - $160

08. DreamHost

DreamHost is an affordable, robust web host. Shared hosting, VPS, Cloud and Dedicated hosting are all available, each with their own respective plans, making DreamHost one of the best website hosting for small business options.

The more common, shared hosting plans are affordable and annual plans offer a free one-year domain with privacy protection. DreamHost also outdoes a lot of its competition by offering a unique 97-day money-back guarantee for its shared hosting plans.

Highlight : With cheap basic plans and a good money-back guarantee, DreamHost is a good option for those who aren’t sure how their business web hosting needs might change over time.

Price: $2.59 - $299/month

Storage : 50GB - Unlimited

09. A2 Hosting

A2 Hosting is a particularly good choice for small businesses just starting out, as the shared hosting plans are affordable and have some great features for newcomers.

Even the most basic plans have something going for them. The “Lite” plan includes free email addresses, a free SSL Certificate and its own drag and drop website builder.

Highlight: This all in one host is feature-rich and affordable, a good choice for small businesses.

Price: $5.99 - $349.99

10. SiteGround

Last but not least is SiteGround, a simple and straightforward web host. Affordable plans are available regardless of your site needs, though their pricing plans start slightly above average compared to some other options on this list.

Highlight : SiteGround isn’t bursting at the seams with extras and must-have features often found with other competitors, but it’s a solid option for those looking for a no-frills web host.

Price : $11.95 - $240/month

Storage : 10GB

What is web hosting?

Web hosting is a service that provides storage and access to websites. When you sign up for a web hosting service, you're essentially renting space on a server where you can store all the files and data necessary for your website to function properly.

Web hosting is an essential part of creating and maintaining a website. By choosing the right web hosting provider and plan, you can ensure that your website is fast, reliable and secure.

How does web hosting work?

Web hosting works by providing space on a server for your website's files and data. Servers are powerful computers that are connected to the internet 24/7. When someone visits your website, their computer sends a request to the server where your website is hosted. The server then sends the files and data necessary to load your website on their computer.

Web hosting providers typically maintain large networks of servers in different locations around the world. This ensures that your website is always accessible to visitors, no matter where they're located.

Here's a simplified explanation of how web hosting works:

You sign up for a web hosting plan from a web hosting provider.

The web hosting provider provides you with space on a server to store your website's files and data.

You upload your website's files and data to the server using a file transfer protocol (FTP) client.

When someone visits your website, their computer sends a request to the server where your website is hosted.

The server then sends the files and data necessary to load your website on their computer.

How to choose the best web hosting service

When choosing a web hosting provider, you should consider the following factors:

Web hosting prices vary depending on the type of hosting plan you choose and the features you need. It's important to compare prices from different providers before you make a decision.

Some web hosting providers offer more features than others, such as free domain name registration, email hosting and website builders. Consider which features are important to you when choosing a provider.

Compare prices and features from different providers before you make a decision. This will help you to find the best deal for your needs.

Customer support

It's important to choose a web hosting provider with good customer support. This is especially important if you are new to web hosting or if you have any questions or problems.

Read reviews of different web hosting providers from other customers. This can give you a good idea of the quality of service and customer support that you can expect.

If you have any questions, don't hesitate to ask the web hosting provider. They should be happy to answer any questions that you have.

Once you have chosen a web hosting service, you can sign up for a hosting plan and create your website. Most web hosting providers offer easy-to-use tools and tutorials to help you get started.

Reliability

Reliability is a crucial factor when selecting a web hosting provider. Look for services that offer high uptime guarantees—ideally 99.9% or higher—to ensure your website stays accessible to visitors.

Consistent performance means your website won't experience slow load times, even during peak traffic hours.

Reliable hosting providers often invest in infrastructure that minimizes downtime and maximizes site availability.

Ease of use

Ease of use can make a significant difference, especially if you're not a technical expert. Look for hosting providers with user-friendly control panels.

Choose drag-and-drop website builders that make it simple to create and update your site without the need for coding knowledge.

User-friendly tools save time and allow you to focus on growing your business, not troubleshooting your hosting account.

Scalability

Your business needs may grow over time, and your hosting service should be able to grow with you. Scalability is key—choose a provider that offers flexible hosting plans or allows for easy upgrades without downtime.

Whether you anticipate a surge in traffic or require additional resources like storage or bandwidth, a scalable solution ensures your website can handle increased demand without interruption.

Types of web hosting

Web hosting providers offer a variety of hosting plans to suit different needs and budgets. Some of the most common types of web hosting include:

Shared hosting

This is the most affordable type of web hosting, where your website shares space on a server with other websites. Shared hosting is a good option for small websites and personal blogs.

VPS hosting

This type of web hosting gives you more control over your server environment than shared hosting. VPS hosting is a good option for medium-sized websites and businesses that need more performance and scalability.

Dedicated hosting

This type of web hosting gives you exclusive use of a server. Dedicated hosting is the most expensive type of web hosting, but it's also the most powerful and reliable.

What web hosting features do you need for a small business?

Web hosting is an essential service for any website or online app. It provides the storage space and computing resources that your website or application needs to be accessible to visitors from around the world.

There are a number of different web hosting providers to choose from, and each one offers a variety of features and pricing plans. It can be difficult to decide which features are most important for your website or application, and which ones you can do without.

Here are some of the most important web hosting features to consider:

Disk space: Disk space is the amount of storage space that is allocated to your website or application. This space is used to store your website's files, such as your HTML, CSS, JavaScript, images and videos.

Bandwidth: Bandwidth is the amount of data that can be transferred between your website or application and your visitors' web browsers. This is important for websites that have a lot of visitors or that have large files, such as videos or images.

Uptime: Uptime is the percentage of time that your website or application is available to visitors. A high uptime is important for websites that are critical to your business or that you want to be available to visitors at all times.

Email hosting: Email hosting allows you to create email addresses for your website or application. This can be useful for sending and receiving business emails.

Backups: Backups are copies of your website's files and data. They are important for protecting your website from data loss, such as if your website is hacked or if your web server crashes.

Best web hosting services FAQ

What is the best hosting provider for a small business.

The answer to this will depend on your own specific needs. In order to choose the best hosting solution for your business as you scale, we'd recommend a multi cloud hosting solution with high uptime and in-built website security.

What is the best hosting provider for beginners?

What is the cheapest best hosting provider for a business, what is shared hosting, what is vps hosting, what is dedicated hosting, what is managed hosting, what is email hosting, what is the best hosting provider for a service business, what is the best website hosting for an ecommerce site or online store, related posts.

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A Thorough Guide on How To Start a Web Hosting Business

By Danica Djokic

June 19, 2023

If you’re considering starting your own web hosting business, congratulations! This is a great way to earn a living while doing something you’re passionate about. As companies are in constant need of web hosting services, you can tap into this growing market by starting your own business. 

So, if you’re a beginner in this line of work, we’ll provide a thorough guide on how to start a web hosting business, including everything from choosing a niche to setting up your website.

Starting From Scratch: What Is Web Hosting?

Web hosting is an online service that allows businesses and individuals to publish their websites by renting the necessary space and infrastructure. A good web hosting provider will offer everything you need to get your website up and running, including a domain name, email accounts, and secure server space.

There are several types of web hosting, including shared, cloud, VPS, and dedicated hosting.

• Shared hosting is the most common and affordable type of web hosting. This means your website will be sharing a server with other websites. Even though shared hosting gives users less control over their website, it’s a good option for those who are just starting out.
• With cloud hosting , your business’ website will be hosted on multiple servers. Owing to this, you’ll have more flexibility and scalability than with shared hosting. It’s also more expensive and requires more technical expertise.
• VPS (virtual private server) hosting provides each user with a private server and more control over their website. Most of the top-rated VPS hosting companies offer higher speeds, IP addresses, an option of a managed account, and robust security measures.
• Dedicated hosting is the most expensive type of web hosting, but it’s worth it as it’s also the most powerful. With a dedicated hosting provider , your website will be the only one on that server. This gives you complete control over your website and allows you to customize it so it fits your specific needs perfectly.

Why Start a Web Hosting Business?

There are many reasons you might want to start a web hosting company. Perhaps you’re passionate about technology and helping others build their online presence. Or, you might be looking for a way to earn a steady income from home.

Whatever your motives, this type of business can be a great way to achieve your goals. Here are a few benefits of starting your own web hosting company:

It’s a Lucrative Industry

The web hosting industry is growing rapidly. In fact, it’s expected to reach a whopping $267.10 billion by 2028. This provides an excellent opportunity for those who are looking to start their own business.

It’s a Reliable Business

People will always need web hosting for their business operations, so tapping into this niche is a proven way to earn an income. As long as you provide quality service, you can be sure that your customers will stay with you for years.

It Provides Additional Income

Another benefit of starting a web hosting business is that you can generate multiple income streams. For example, you can sell web hosting, domains, and email services. You can also upsell by offering your customers additional services such as website design or SEO.

It’s an Easy Job

As most of the legwork can be performed by the web hosting provider, outsourcing the day-to-day tasks of running a successful web hosting business will give you more time to focus on marketing and growing your business. You can even find freelancers who can help you with everything from customer support to website maintenance. 

How To Start Running a Web Hosting Company

The growing internet hosting market offers new opportunities for entrepreneurs who are ready to commence their business. However, just like any other commercial venture, hosting requires meticulous preparation. We’ve compiled a list of six steps you can undertake to start hosting websites for clients: 

1. Identify Your Niche

With so many large hosts on the market, trying to stand out as an emerging web hosting business startup can be a challenge. A good way to carve out a place for your company is by identifying the niche you can cater to and becoming an expert in that area. It’s best to focus on a specific market segment and then provide the best possible service for that particular group of consumers.

For example, you could focus on small businesses that are just starting out and need an affordable and user-friendly web hosting solution. Or, you could target eCommerce businesses that require a reliable and secure platform to host their online store. Another option is to specialize in hosting WordPress websites .

When starting a web hosting company, keep in mind that increasing numbers of people are becoming aware of the importance of renewable energy. By hosting with green energy, you’ll be able to show that you’re a company that cares about the environment. Not to mention that turning to renewable energy sources for powering your servers is a great way to draw attention to your company.

Yet another exciting niche might be the one that offers DDoS-protected servers. With the number of DDoS attacks on the rise , this is a service that more and more businesses will need. By providing this type of protection, you’ll be able to attract customers who are looking for extra security for their website.

2. Research the Market

Before you ask yourself: “How much money do I need to start a web hosting business?” conduct thorough market research and find out what the unmet needs of your potential customers are. This will help you determine what type of hosting services you should offer, how much to charge them, and how you can make your company stand out from the rest.

Start by looking at your competition and analyzing their offers. What type of services do they provide? What are their price ranges? How can you make your company outperform theirs?

Then, engage in a bit of customer satisfaction research by taking a look at what your potential customers are saying online. Are they happy with the services they’re receiving from their current host? If not, what would they be looking for in a new host?

By answering these questions, you’ll be one step closer to figuring out how to start a web hosting business on your own.

3. Define Your Business Model

The next step is to define your business model. There are several ways to do this, so it’s important that you take the time to delineate your strategy.

Before you venture into creating your own hosting company, pick a suitable name for your domain, think of pricing plans, and consider the design for your website. You can leave it to a selection of website builders , which will further reduce your initial costs. 

Then, decide which type of hosting services you will offer. As we mentioned, you can go for a shared, cloud, VPS, or dedicated website hosting business model. 

You can also try reseller hosting, where you’ll be able to purchase hosting services from a larger company and then sell them to your own customers. If you opt for this approach, you won’t need to invest anything in technology, which means that you can get started with modest capital. 

Numerous reseller hosting programs are available, so it’s best to do your research and select the one that’s just right for you. 

Or, you could offer services of a web host manager, where you’ll take care of all the technical aspects of running a website for your customers. This is yet another excellent option if you have the necessary skills and knowledge.

4. Get the Right Technology

How to start a web hosting business at home? Well, if you want to offer high-quality hosting services, access to the right technology is indispensable. This includes both hardware and software.

In terms of hardware, you’ll need to invest in servers that are powerful enough to handle the load of your customers’ websites. Remember that you’ll have to factor in future growth when choosing your servers. You should also have a good backup solution in place in case of any technical problems.

In terms of software, you’ll need to install a web server such as Apache or Nginx, as well as a database server such as MySQL.

Starting a web hosting company will also require you to choose a control panel for your server. The most popular options are cPanel / WHM and Plesk, but there are other options available as well. While cPanel’s WHM offers a built-in support desk to deal with customer inquiries, most hosts use external helpdesk software. Some popular choices are Zendesk or Kayako.

Another vital component that most hosting companies have started offering as an add-on is the email server. 

Finally, don’t forget to include a sophisticated security solution to protect your servers from malware, hackers, and increasing DDoS attacks . A firewall is a good option, but you should also consider investing in a robust anti-virus program.

5. Offer Reliable Customer Support

Providing prompt and reliable customer support is essential when building your own web server. This means being available 24/7 to answer any questions that your customers may have. It also means being quick to resolve technical issues such as downtimes.

Clients that run a business will rely on their hosting company to keep their website up and running smoothly. If you can provide this, you’ll be sure to retain their business.

There are many channels that you can use to offer customer support. Consider

providing email, live chat, or even toll-free phone support. Keep in mind that customers who require website hosting for their business needs appreciate quick responses, so make sure that you’re available as much as possible.

6. Spread the Word

Once you have everything set up, it’s time to start marketing your hosting company. There are several approaches, so you must find the one that works best for you.

Creating a website is an effective ways to market your business. This will give you a platform to showcase your services and attract new customers.

But simply knowing how to start a small web hosting business isn’t enough; to promote it, you should set up social media accounts and start posting regular updates. This is a great way to connect with potential customers and build a presence among them.

Another effective marketing method is to create a blog and write articles about hosting-related topics. This is a great way to show your expertise and spread the word about your business along the way.

You can also consider using an email marketing service provider that will allow you to send out regular newsletters to your subscribers and keep your services top of mind.

Bottom Line

All in all, once you decide to pursue the business model that best suits your needs, make sure to invest in the right technology so that you can provide high-quality services to your customers, and market your business effectively. Hopefully, our guide on how to start and run a web hosting business from home will help you make informed decisions.

Hosting is a great way to make money online, and it can be a profitable business if you do it right. With so many emerging companies that are yet to establish an online presence, it’s a market segment replete with possibilities.

With the right tools and technology, a prudent web hosting business plan, as well as a bit of marketing savvy, you can be well on your way to becoming a successful hosting provider.

Can you make money with web hosting?

As the web hosting market is expected to reach $267.10 billion by 2028, it’s safe to say there’s potential to make good money in the industry. With the right mix of web hosting services, marketing strategy, and pricing plans, you can be well on your way to becoming a successful hosting provider.

The business does require some upfront investment, though, but with the proper planning and execution, it can prove a lucrative endeavor. If you’d like to know how to start a web hosting business with little to no money, you can go for reseller hosting as it doesn’t require investing in infrastructure. This way, you’ll be able to offer a web hosting service without the hassle of maintaining servers.

How do hosting servers make money?

Hosting servers make money by charging their customers for the use of their services. Customers will typically pay a monthly or yearly fee in exchange for access to the server.

Hosting providers may also offer additional services such as website design, email, and domain name registration. These services will usually come at an additional cost. In some cases, hosting providers may also offer advertising space on their servers. This is typically done through banner ads or text links displayed on the customer’s website.

How do you sell web hosting?

To start your own web hosting company, you should first find a niche market. Once you’ve identified it, you should engage in market research and check what your competitors are doing. After that, you need to create a pricing strategy and find the right hosting solution for your customers. You can use shared hosting, cloud hosting, VPS hosting, or dedicated server hosting.

Another option is to go for reseller hosting, which will allow you to sell web hosting services without the hassle of maintaining servers.

The next step is to invest in the right tools and technology. This includes a domain name, website, billing software, and customer support system. Once you have all the necessary tools in place, you can start marketing your business to customers.

Is selling hosting profitable?

Knowing how to start a web hosting business and effectively implementing these insights can be quite profitable. Whether you decide to try web hosting as a side job or go all in and build a hosting empire, there’s potential to make good money in this sector.

Of course, as with any business, there are certain risks involved. The market is quite saturated, so you’ll need to be able to offer something that stands out from the rest. You’ll also need to invest in the right technology and tools and have a solid marketing strategy in place.

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