Selling Hosting as a Hobby

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Posted by Zaitech, 05-11-2009, 01:02 AM
Hey, So, I'm a film editor / web programmer who has multiple sites. As such, it was just easier to buy a Reseller account. The thing is, 90% of the server is going to waste, and I've been thinking of reselling parts of it. Although my main passion is film, just letting this hosting sit there seems like a waste. Is it possible to resell hosting as a hobby business? Nothing like 500 clients, but just something to bring in some additional income? I've got enough free time so I can manage client problems, set up accounts, manage billing, etc. But not enough free time to really support a massive amount of clients. I'm sure this seems ridiculous, just need to figure out what to do with this extra hosting.
Posted by IGXHost, 05-11-2009, 01:23 AM
Sure it's possible. Get a system like WHMCS and you're set. It will help automate the account provisioning and invoicing and it provides a client portal as well a integrated helpdesk for your clients for support.
Posted by Slitheryimp, 05-11-2009, 01:24 AM
It's possible, but the biggest problem is supporting your customers while you are at your 'day job'. There are Hosting companies with Reseller accounts that include tech. support for your customers, but as it's been so long since I had need for such an account I can't really help you with finding a good Host for this.
Posted by ldcdc, 05-11-2009, 04:21 AM
If you can't stand the idea of waste, scale back. Get a smaller account, or shared hosting with multiple domain abilities. I wouldn't start a business just because I can. If your main abilities lie in another area, focusing on that is likely to be more lucrative.
Posted by rumsfo, 05-11-2009, 04:29 AM
I assume that you can do that in any way you want, just remember that your main aim - your customer satisfaction. Maybe on your getting started you will become professional
Posted by JFSG, 05-11-2009, 05:44 AM
Find companies like InnoHosting to deal with customer support and stuffs.
Posted by JayX, 05-11-2009, 08:03 AM
Zaitech - this is exactly what I do. My site demands more than what shared hosting requires due to background processes and transfer usage, and the main portal is a forum. So I have a subforum set up for people to buy space from me at (in my opinion) reasonable rates to pay for the server. I sell realistic packages (200mb/5gb for $25 a year roughly) most of which don't hit their full resources, meaning my site still has plenty of drive space and transfer left itself. The key to this is honesty and communication. I make it abundantly clear this is ideal hosting for personal pages and band sites (my community caters to the local music scene) and not for mission critical business. They know they're not going to get 0sec responses and they're essentially buying unmanaged packages, and if I'm around I'm more than happy to do the simple things for them (set up mail/ftp accounts etc) and show them how to host. I've been doing it a few years, have a bunch of people buying space (a lot of whom I now in real life or just off my site as I don't advertise elsewhere) and it's always gone pretty smoothly. No impossible tech requests, no DMCA or fraud issues, and every signup I do is manually so I don't have to license other tools/worry about where the signups have come from. I'd say go for it if you're happy to deal helping people out for a bit on each new signup. Local customers are really good for spreading the word too!
Posted by UH-Bobby, 05-11-2009, 09:05 AM
Just my opinion, but as long as you let people know that it's a hobby rather than a full business, then I personally see no problem with it. Just make your intentions clear, and make sure your customers know what to expect. Like JayX said, Honesty and Communication will be key here.
Posted by rustyh, 05-11-2009, 09:38 PM
Hi There are services out that you pay for a reseller option, you just link from you site, and they do most of the work, you just set up the domain etc and most times that is done by the buyer if they now what they are doing,, and support is over to them, Does you service offer that? having a reseller account can be cheaper than running 3 sites, and you can charge what you want for any others, cheers
Posted by warren4321, 05-12-2009, 07:27 AM
Even as a hobby but you still need to manage well to provide up to standard services.
Posted by RescueHst, 05-12-2009, 01:25 PM
I started in all of this as a hobby - I run a large broadcasting site that required a dedicated server so I soon then starting offering space of of it to help offset the prices. I then got into web design and other services as well. I originally started using a reseller account and then grew from there. I still recommend the same path, start out small and grow - can always upgrade and move into bigger digs
Posted by SenseiSteve, 05-12-2009, 02:51 PM
Is diversification always good? Not necessarily. Will this detract from the core focus of your business or personal fulfillment? Probably. It's a trade-off - only you can determine its merits. With the time you devote to filling this void, could you not be more productive doing something film related?
Posted by vipmedia, 05-13-2009, 08:51 AM
I think its doable. And its good recurring income if your clients are loyal. Go for a few signups a month.
Posted by db09, 05-13-2009, 03:49 PM
To OP: I think it can be done but some of it depends on your provider. For example, I sell hosting - basically as a hobby - to local businesses and individuals. My provider does end user/billing/sales support, so once I set up WHMCS and the site theoretically I can sit back and let everything take care of itself unless my attention is directly required.
Posted by MikeDVB, 05-13-2009, 03:58 PM
From what you have said I don't know if you really want a Reseller plan at all, as the same limitations placed on regular shared hosting will likely apply. You may be wanting a VPS or a small Dedicated server where you can run background processes etc...
Posted by IHSL, 05-14-2009, 12:37 PM
If you are wanting to sell hosting services "on the side" as a hobby, that is fine. Just remember, though, that you still have to register the business, and all that entails. The biggest mistake people make is selling hosting without actually being registered or paying taxes. Speaking to one of our resellers a week or so ago, I found out that he had been selling hosting services for a bit of extra cash, but never once registered his business or paid tax on the income. He does now, thankfully, but it's a common mistake made with resellers and/or new start-ups. Simon
Posted by RescueHst, 05-14-2009, 12:49 PM
IHSL so your saying you do an audit for the state, and feds to make sure any of your customers have a business license or not? What made you decide to get into that business?
Posted by IHSL, 05-14-2009, 12:53 PM
Eh? How did you jump from me speaking with one of our clients, to me "doing an audit for the state and feds"? I spoke to the reseller as part of our regular communications and he asked me for advice on growing his business. I gave him the same advice as I gave the topic starter. Simon
Posted by RescueHst, 05-14-2009, 12:57 PM
Ahh your post didnt sound like he asked you about advice kind of sounded like you checked up on him. Some area's dont require a business license for internet only commerce - My city for example doesnt and in fact could care less, as for the state as long as it stayed hobby wise they didnt want one either - this was when I was doing it as a hobby, and since you only have to report to the IRS if you make so much a year these dsays prices outweigh profit ... sad though but true.
Posted by Gary4gar, 05-14-2009, 02:01 PM
I would suggest you to get a reseller account with End-User Support. this way you can focus on your main business while earning from this newly found hobby. InnoHosting.com offers such kind of plans with end user support

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