Start a web hosting business in Nigeria
The web hosting industry has been a major target for Entrepreneurs over the last two decades as the Internet has exploded into a tool that people around the world most especially Nigerians and other countries in Africa carry around in their pockets (via their smartphones).
This provides the opportunity to offer small businesses, individuals, and other organizations web space for their websites and make reoccurring income (a/k/a subscription revenue). Many successful web hosting businesses in Nigeria (such as Whogohost, Domainking, etc.) were able to get their start by Reselling Web Hosting.
What is Web Hosting?
Web hosting is a service that allows organizations and individuals to post a website or web page onto the Internet A web host, or web hosting service provider, is a business that provides the technologies and services needed for the website or webpage to be viewed in the Internet. Websites are hosted, or stored, on special computers called servers. When Internet users want to view your website, all they need to do is type your website address or domain into their browser. Their computer will then connect to your server and your webpages will be delivered to them through the browser.
Most hosting companies require that you own your domain in order to host with them. If you do not have a domain, the hosting companies will help you purchase one.
How to setup a Web Hosting Company
Below are the things you should consider if you are planning to start web hosting business with little investment.
Select the categories of Hosting you desire to offer to your clients
The types of servers you decide may vary according to your investment in the beginning. Generally, people only offer shared hosting at the start because the other kind of hosting is preferred to be bought from old service providers by clients across the world. Once you have started earning money and created a benchmark for yourself, you can start offering dedicated hosting and Collocated Hosting.
In shared hosting, many clients are assigned different partitions of a single server which leads to a low cost of operations. On the other hand, clients who buy dedicated hosting gets the advantage of using a whole server without sharing it.
Collocated hosting is the most expensive hosting because the client gets to select desired hardware according to their choice and place it with the host company and use it as their own; they can install any kind of scripts and programs on it.
Create your price charts and decide your profit margins
Before deciding the prices for the various services you are willing to offer, research the competitors at your level (not the ones who are into the business for many years and operate globally, but the ones who are also new or just few months into the business).
See what prices they are asking their clients for various services and then set your prices which are favorable for both of your company and clients. We would advise you to keep the prices low in the start and provide the best quality to attract customers and create a name for your company.
Client and Resource handling software mechanism
A panel from which you can organize and manage the entire client data and operations and validate website orders. This panel can be a WHMCS panel or some other software panel you would like to use.
Select the best ISP to keep constant connectivity
Internet connectivity is the core requirement for any hosting service provider which no web hosting company can ignore. So selecting the best ISP to keep constant connectivity is of utmost importance to manage your clients and resources. Good Internet connectivity and higher bandwidth is the most important thing for a web hosting Service Company to ensure that its clients don’t hassle out from its services and go to its competitors.
For this reason, the requirement of the best ISP you can get at good rates is extremely necessary. Without a good internet service provider and high bandwidth, you cannot succeed in the web hosting business.
Purchasing Bandwidth to make the websites faster
The higher bandwidth allowance you buy for your servers, the websites that are installed on them by your clients will be the faster and quick. It will make your clients happy and will attract more customers. Your purchase of bandwidth will also depend on how much clients you have.
For an instance, a bandwidth allowance of 10 Mbps will allow your servers to have around 1000 VPS accounts/ servers. You can start your business by buying an average bandwidth for the starting days as there will be not many clients in the beginning and then you can increase the bandwidth according to the requirements.
To keep your hosting servers online 24 x 7, you will need to make sure that power cuts never affect your servers. Install inverters and electricity generators so that you can keep your servers up even when there are power cuts or in case of emergencies.
Consider every aspect before purchasing hardware
While purchasing hardware (server machines and peripherals) for your web hosting business, make sure that you get the best deal and research every provider in your reach. Make sure that you get the best hardware so that you can fulfill the needs of your client and also good hardware will help you to manage various accounts like Shared, VPS, and dedicated hosting.
A supplier can ought to select the merchandise line that he is entering into. For example: bloggers need cPanel with their Linux VPS accounts for which the license price is variable from one supplier to a another counting on deals with cPanel.net. Thus having a evaluation varying for all such license purchases in synchronization with the information measure calculations (shall offer you a value per client) and strategy of deciding product share (Dedicated vs VPS vs Shared Hosting) in your business can offer you with an entire summary of evaluation ranges.
Outsourcing Support Teams
Managing a few numbers of accounts in the beginning won’t occur as a problem to anyone but once your business has grown and so has the number of clients, you will need a good support team to solve the problems of your clients without making them wait. So keeping a reserved fund for getting people as your support team can be a very good strategy.
Well, the one major thing to make any business successful is proper marketing and that is the same case with an online hosting business. You can select from different marketing strategies like SEO, SMO, etc. Just do your marketing properly.
Best Web Hosting Companies in Nigeria:
If you are looking for the best website hosting providers in Nigeria, whether you are looking for Shared hosting, Website Builders or WordPress Hosting providers or want to know who the best website hosting providers in the Nigeria we have got you covered since we reviewed (and re-reviewed)
Registeram is a fast growing web hosting company in Nigeria. It offers services ranging from domain name registration to web hosting. Registeram Linux web hosting costs between 11,500 and 75,000 Naira per year.
Registaram offers 5GB to 30GB storage space depending on your subscription package. Monthly traffic limit ranges between 25GB and 90GB traffic also depending on your web hosting plan. You can pay online with your debit card or pay Naira bank deposit.
Registeram offers an auto installer for Joomla, WordPress, Drupal, and many other scripts according to the information on the website.
DomainKing is one of the best web hosting companies in Nigeria with a wide range of affordable services and freebies. For as low as 300 Naira per month, you can get your website hosted on DomainKing. You may be quick to dismiss this as another cheap web hosting service, but you would be wrong. This entry level plan comes with free SSL (which is good for SEO) and free .com.ng domain for the term you paid for.
If you need more resources and faster servers, DomainKing also has an 800 Naira per month plan and a 1,599 Naira per month plan. If you want to build a blog on WordPress, DomainKing has a couple of plans targeted at hosting WordPress sites starting at 533 Naira.
HostNowNow is another fast growing web hosting company in Nigeria. The company offers a number of hosting option like shared hosting, reseller hosting, and cloud hosting.
For as low as 3,000 Naira per year, you can host your website on HostNowNow. If you need a website that is easily scalable, HostNowNow also offers Cloud Hosting starting at 4,000 Naira a month
GlobalHosting247 offers one of the most affordable web hosting service in Nigeria. With as low as 2250 Naira, you can get one year of the company’s basic plan, which offers you 1GB disk space and 15GB Bandwidth + unlimited Mysql databases, unlimited FTP accounts and unlimited email accounts.
5. SMartWeb Online Solutions
SmartWeb Online Solutions is a fast growing web hosting company gaining in reputation by the day since its launch in 2004. The hosting company offers from 10GB to unlimited storage depending on your subscription package.
Monthly traffic limit ranges between 30GB to unlimited traffic, again depending on the hosting plan you choose with price ranging from 3,500 to 50,000 Naira yearly. You can pay in Naira for your SmartWeb hosting plan.
WhoGoHost is one of the leading Nigeria based web hosting providers. One unique thing about WhoGoHost is that the company offers both yearly and monthly plans, which can make things easily for people working under a tight budget.
The entry level plan called Aspire costs 4000 Naira per year and 400 Naira monthly. This web hosting plan offers 1GB storage and 4GB of bandwidth. The company offers plans going from 4,000 to 21,500 Naira yearly offering from 1GB to 25GB storage and 4GB to 75GB bandwidth.
Before you get started with the few steps to start a web hosting business, I need to tell you one more thing: Be patient.
Always keep in mind that customer service and high quality hosting are the key to success. Ensure to use as much advertising programs as you can to find new customers.
I hope that this tutorial could help you start a successful Hosting company. Don’t forget to let us know If you have any questions about starting a web hosting business in Nigeria, let us know in a comment below. I’ll try to clear things up.