Web hosting is turning out to be a very lucrative business venture in the growing market that is China. It’s a relatively low-cost investment with potentially large returns. If you’re looking to make a profit hosting sites in China, however, it’s best to walk into it prepared.
Budget. First of all, as with any business venture, set a working budget. Compute how much money you’ll need to put into your new web hosting business, and see how long it’ll take you to generate that amount. Include the operational cost for the amount of time you’ll be working without real profit. Decide whether or not it’ll be worth your time and effort. If it is, then you can move on.
Find a service provider. The next thing you can do is find a good service provider. What pushes most Chinese clients to use US-based web hosting is the comparatively better deals they can get. For $100 a year, your average Chinese web hosting service provider will offer 1 GB of bandwidth and 250 MB of disk space. An American web hosting service provider, on the other hand, will give you a whopping 3000 GB of bandwidth with 300 GB disk space. Browse the Internet for the best deal you can get by doing your research. Do a Google search for different providers, and check the rates out. Dive into various forums, and get valuable feedback on your top options. Find a deal that you’re comfortable with, and one that you are certain will attract your clientele in China.
Define your market. The next thing to do is to define your target market. This will dictate how you package your web hosting service. One thing to keep in mind is that a lot of clients in China prefer US web hosting service providers because of the higher quality of service they offer. Take into consideration that many Chinese clients opt not to pay via Paypal or credit card, despite the two methods’ popularity elsewhere. Chinese clients typically play it safe with their money more than American clients, and so they aren’t comfortable giving out their credit information, despite the security measures offered. Learn from Lunarpages, one of the most popular web hosting service providers in China knowing this hesitation of its clientele, the company began to support paying through debit card.
Other services. Also, your Chinese customers will eventually choose to purchase a dedicated IP, so you should consider offering that as well. Due to strict government restrictions, quite a number of server IP’s are banned, due to the creation of sites deemed illegal. To date, only one company provides the combination of a free, dedicated IP and fast connection speeds. Capitalize on that market, and your web hosting service will grow.
Operational costs. Lastly, take into consideration your possible operational costs. This includes employees’ salaries and rent. Ensure that you’re getting your money’s worth from the necessary expenses of running a business, by hiring the right people in the right workplace. Find a balance between costs and operations to maximize the efficiency of your business and, as a result, its profitability.
You’ve got to be personally invested in your company to grow. If you manage things properly, you’ll find that your web hosting service will be very rewarding.