Why To Start A Web Hosting Business In India?

There are many reasons why one should start a web hosting venture in India. The most important factor why many individuals start a company offering web hosting in India is because it's a recurring business model. You can generate revenue through every person who is willing to setup his own website. The web hosting customer will pay the hosting charges every month or every year depending upon the billing term. The customer has to pay the respective charges at every renewal.

Here are some reasons which would tempt you to start a web hosting business:

1. Internet Users: The internet population is growing at a rapid pace in India. The biggest role is played by the social networking sites, they have attracted people of every age group. The internet is heavily used via desktops, laptops and hand-held devices. These users are getting attracted towards online shopping; this behavior of web users has given a tremendous boost to the eCommerce business in India. There are millions of businesses running in India, out of which very few are having a website or domain name registered. This fact has enticed some big players of the hosting industry to expand their web hosting business in the Indian market. The market is big, everyone has an opportunity to capitalize and make huge business out of it.

2. Investment: To start an online web hosting business, you don't require huge capital, infrastructure or man power. A web hosting business can be setup by an individual or a group of people by investing minimum amount. You don't need to buy/rent a big office, setup infrastructure and hire people at an earlier stage. For online business, you need a website, hosting space and a person to manage the operations. You will find many articles on internet on how to promote or market web hosting business online.

3. Product Range: Like established and professional web hosting companies, you can also sell services like shared hosting, reseller hosting, VPS hosting, cloud hosting, dedicated servers, domain name, ssl certificate, site builder etc. Unlike other businesses, you don't have to buy all these services in advance and keep them in stock. Identify some good web hosting providers, sign a contract with them so that you can resell their hosting services through your website. Get the hosting product pricing sheet, add your margin and upload the prices on your website. You also get an option to white label the hosting service, your customers would never know that you are reselling from some other hosting provider. It's absolutely your decision to decide the profit margins, the margin should not be less than 30% to 35%. You won't survive in the business if your profit margins are very low.

4. Round the clock support: The key to success in web hosting business is offering 24/7/365 support. You have to be available throughout the day for your customers and prospects. It's one of the challenging areas where many start-ups fail to cater. Handling Indian customers is one of the most challenging task, they don't like to communicate through live chat or email. If anything goes wrong they would directly call you. It would take time for the Indian customers to get used to the online world. But you get a wonderful opportunity of making a good rapport with your customers.

5. Referral Business & Word of mouth: Business in India is usually won with the help of word of mouth factor. It's more stronger and the fastest way of spreading news as comparison to online paid advertisements. If you are able to keep your customers happy they would refer more customers to you in the future. It's a human tendency, if close friends or relatives recommend something, without giving a second thought the concerned person would directly sign up for the hosting service. The big brands will not become an obstacle for you, if your customers start recommending your services to others.

There are many hosting providers around but I think it's an evolving market and there is a huge scope for any one to start and establish web hosting business in India. Start your web hosting company today!