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I can't get rich online and neither can you. Topics include why you won't get rich with your blog, ideas you wish you had thought of, and other Internet phenomena.

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You Can’t Get Rich With Webhosting

I do webhosting support for a living, and even though I support dozens, maybe even hundreds of different webhosting businesses, I can group their owners into just three categories: Doers, Dreamers, and Dumbasses. If you’re itching to get started in the webhosting biz, chances are that you’ll fall into one of the two latter categories, as Doers are hard to come by these days.

The Doer

The Doer is a rare and dying breed. He knows his stuff, or at least he has a team that does. On top of that, he has a plan, a vision, and enough cash to see it through. These guys have been in the industry for awhile and are pretty successful. Doers nowadays are pretty rare due to market saturation, and the potential new guys take their good ideas elsewhere.

The Dreamer

The Dreamer is similar to the Doer in that he knows his stuff, but he doesn’t really have a vision or financial backing. He’s most likely a college grad with a technology degree and an extra PC. Dreamers are full of energy at the start of their little venture but burn out quickly. After building a website and setting up their server, they might get a few customers but then business will stagnate (or they’ll get their first bandwidth bill). They usually end up folding or selling off their business to a Doer.

The Dumbass

I hate these guys. They have a vision, a plan, and plenty of money. The downside is that they have no idea what they’re doing. These are guys that heard ‘that Internet thing’ is full of money and they want to get a piece of the pie. They’ll rent or buy a server from a large data center, hire someone to build them a website, outsource their technical support, and somehow acquire a few customers. At the first sign of trouble (MySQL server crashes, server gets blacklisted due to spam, etc), they’ll fly into a fit of range and confusion, blaming their support staff (me) and demanding a fix. Their business will eventually fade into the background with all of the other 1 or 2 server webhosting operations.

Why you shouldn’t bother

To say the webhosting market is saturated would be like saying the ocean is saturated. On top of that, most new webhosting companies can’t bring anything new to the table, and they can’t compete with the big guys in terms of resource availability (my bandwidth can beat up your bandwidth). If you’ve ever thought of getting into the webhosting biz, walk away and find something better to do with your time.

Of course, reseller webhosting is completely different. More on that later.

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One Response to “You Can’t Get Rich With Webhosting”

  1. Josh Says:

    You are correct, webhosting is a competitive niche. It is very hard to establish a webhosting business and profit from it.

    Josh Day
    http://www.abigarcade.com

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