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OMFG! I 0wnzers teh hosting company!

<rant>

Ok folks, it is high time we had a little discussion about what it means to be a small business owner in the Web hosting industry.

The other day, I was in the position to act as a gatekeeper for the publishing of a "press release" written by a new "company," the "company's" "chief marketing officer," no less. It was immediately apparent upon reading the release that "chief marketing officer" was a made-up title (I'm certain this "company" does not have officially installed officers and an elected board of directors installing them, or a similar setup). It was also immediately apparent that the person proclaiming to be the last word in this "company's" marketing program had no formal training and at best little real world marketing experience. The site referenced in the "press release" corroborated my suspicions.

Wow - that's a lot of quotes in that last paragraph. But yeah, anywhere you see quotes, insert the words "so-called" in your mind. That's pretty much the long and short of it. Basically, what we're talking about here is a kiddie host.

There's nothing wrong with having little experience, but there's something wrong when you don't know how much you don't know, and you're not willing to learn. Obviously there's a little more to the story than just what I posted above, and I don't want to go into any more specifics because I'm not trying to cast shame on a single person or point a finger at a specific "business." I'm trying to make the following point. The hosting industry has gotten to the point where practically anyone can open a Web hosting business about as easily as you can open a lemonade stand.

The best case scenario involves a fairly responsible, adult-minded (and probably adult-aged) person, who has purchased a reseller account to host a small network of sites, or to help his or her friends manage their sites and make a little profit from it. Extra kudos if they have a business plan that clearly takes them through a series of reseller levels and eventually into a more complete hosting environment (dedicated server(s), dedicated grid space, what have you).

More often than not, you get "summer break hosts," kids who are out to make a few extra bucks while school's out, and are not particularly interested in maintaining a customer base once they're back in session.

A good Web hosting business has to start with the right mindset and a heart for customers. It needs a solid plan, and the development of at least a basic support structure to get things off the ground. There has to be a convenient way for people to pay. There had to be a convenient support mechanism. There has to be disaster contingency plans. There has to be...dozens of other elements taken into consideration (legal, business registration, taxes, etc.).

In one sense, I respect the entrepreneurial spirit of those who are honestly trying to create something new and good. In another sense, there isn't room within this industry for hosts who have set themselves up for failure because they didn't take the time to plan for their business's needs, or worse, because they didn't really care in the first place.

As Web hosts who provide reselling to the public, there's something we can do about this. For those of you who are more interested in seeing your customer's grow and less interested in making a fast buck wherever you can, look for ways you can contribute to the growth of your customers. Seek out business partners your customers can use at favorable rates. Publish items of interest, basic hosting articles, checklists and to-do lists for new hosting businesses. Set up special business support in addition to technical support and customer support.

One day, you might find yourself competing against one of your own customers, who you've helped grow into a respectable host. If so, congratulations, and don't feel bad about it. The hosting world is a sea of abundance for those who play well within it, and actively helping others become successful will come back to you. I do believe in professional karma!

And to those of you who have little interest in being a legitimate hositng provider, keep your enquiries coming and make your presences known, so those of us who know the difference and can do something about you will have the opportunity to burst your bubbles and send you home. It sure would be nice to have a hosting business certification body of some kind...

That is all.

</rant>

###

==========[ MORE ABOUT PAUL ]==========

PaulHirsch.com . International Web Developers Network . Web Hosting Talk . Equentity Host

Comments
Very well said, its fun to watch the huge increase in hosting companies starting in May and June and then the sale of them or collapse in late August or September. That being said not all young entrepreneurs are idiots as I started in this industry when I was in college and I've talked to plenty of hosting companies with solid business plans and goals. And hopefully none of them are putting out a crap press release with bad spelling :)

Thanks, Ben
Reseller Hosting Guide
http://www.resellerguide.com
# Posted By Ben | 6/4/07 10:06 PM
Excellent characterization of an issue we all face in the hosting industry. One idea I'd suggest is that hosts who resell help their customers develop great businesses. While its all well and good to offer value added services that also increase your bottom line, you may also want to come up with some white papers, free tech support, or other means of helping your resellers make the transition from two guys and a lemon, to 50 guys and a lemonade route.
# Posted By David Snead | 6/14/07 11:53 AM
 
 

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