Web Hosting By The Numbers
The latest projection for the hosting business, IDC's U.S Web Hosting Services Market
Forecast, projects a compounded annual growth rate of roughly 30% from 2006 through
2008. The most exciting area of growth, is the SME market (small to medium sized
businesses with 1 to 99 employees).
That's where you come in :-)
The small business market is projected to grow
to 10 million businesses by the year 2008. Small businesses generally like to outsource
because they don't have huge, in-house IT departments. Of the millions of small businesses
around the world today, the majority still do not have any kind of meaningful web
presence (their own domain name, domain email, and a quality design and web development
plan).
Whether you plan to provide design and hosting
services together -- or focus just on hosting services -- there is a lot of money to be
made in the hosting market. The nice thing about hosting is it provides a residual income base. Take a look at the following chart to see the long term potential of building
a modest hosting portfolio.
Small Hosting Portfolio (10 accounts
per month)
| Year |
Average Annual
Revenue Per Account |
Number of accounts |
Total Revenue |
| Year 1 |
$300 |
100 |
$30,000 |
| Year 2 |
$300 |
200 |
$60,000 |
| Year 3 |
$300 |
300 |
$90,000 |
| Year 4 |
$300 |
400 |
$120,000 |
Medium Hosting Portfolio (30 accounts per month)
| Year |
Average Annual
Revenue Per Account |
Number of accounts |
Total Revenue |
| Year 1 |
$300 |
350 |
$105,000 |
| Year 2 |
$300 |
720 |
$216,000 |
| Year 3 |
$300 |
1080 |
$324,000 |
| Year 4 |
$300 |
1440 |
$432,000 |
As you can see, the long term potential is enormous -- especially when ValueReseller helps
you keep your overhead to the bare minimum and allows you to easily scale as you grow.
Now that you see the huge potential, it's time to warn you that getting achieving numbers
like those above, is not necessarily easy. It is a competitive business and there are
challenges. The key is to understand the marketing side in addition to the technical
side.
At ValueReseller, we are committed to providing the technical tools and resources that
will keep you a step ahead of the competition. We are also committed to providing you with
the important marketing information that will help you grow your business to whatever
level you desire. Please spend some time reviewing the other articles in this marketing
center and check back often as we continue to expand this area with the sole purpose of
helping you sell more websites!
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