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As the web becomes an essential part of daily life, web hosting companies are starting to grow and become more popular. Now is the perfect time to set up a brand new web hosting company! Here's what you will need in order to set up your company.

With this tutorial, I can't guarantee that you will become the next GoDaddy.com (the most popular domain registar and web hosting company) but I can't definitely tell you that can give you an edge among other small web hosting companies.

1. A name
Something catchy, something memorable, something not already taken. Also, a name that can be instantly turned into a verb (as in the case of “Google”) will earn you some extra points. If you can't think of a name, ask your friends. They may come up with the name you end up using on your web host.

2. A domain
To go on to step 3, you will first need a domain name. You can get one for cheap from sites such as DomainSite. Be warned that company that offer really cheap domain names may require you to buy another product off of their site, so read the fine print.

3. A dedicated server
In order to run your own hosting company, you need to get a dedicated server from another one. A dedicated server is a server just for you, hosted in a company's data center. You pay every month to rent that server, and you can do basically what you want with it. You also get your own IP address.

To find the cheapest one, talk to the company's sales team. Here are some questions you can ask them:

  1. What plan do you recommend for a small hosting company?
  2. Can I upgrade my plan later on if I want to?
  3. Can I install my own control panel software?
  4. If I prepay for one or two years of service, can I get a discount?
  5. What is your uptime percentage?

If they are a good company, their answers should be as follows:

  1. Usually the low level or middle lever dedicated server plans work the best. If they recommend a really high priced server, with over 160GB of disk space and 5TB of bandwidth, you can usually get a plan with a little less disk space and bandwidth for cheaper.
  2. If you plan on sticking with this company for a while, this better be a yes. You need to be prepared to upgrade your plan should your bandwidth or disk space start to run low, otherwise your clients may lose their sites, or be unable to access it.
  3. You need to be able to in order for this guide to work.
  4. Most companies do provide a discount for prepaying for services.
  5. Needs to be high – preferably higher than 95%.

Also, for this guide, you will need to have Linux on your server. Windows will not work.
4. A cPanel with WHM license
cPanel with WHM (Web Host Manager) is one of the most popular web hosting platforms available. You can easily manage your site and your clients can too with their sites.

Note that when you bought your dedicated server, you may have had the option to have cPanel with WHM installed on it for around $40 a month. Of course, while you can go with this option, you will eventually end up paying more in the long run than simply buying a license directly from cPanel. Licenses start at $425 for one year to $1,075 for three years.

When you buy your license, simply give them the details they request on the order form, and your cPanel will be installed for you free.

5. A cPanel WHM Payment Program
Of course, if you use just WHM for your hosting solution, you are going to have to create each account manually. And you don't have any way of providing paid services! So you are going to need a solution that works with WHM to give you a full and automated hosting company, complete with billing for paid services. Two of the most popular are WHMCS (Paid) and cP Creator (Free). Simply install one of them.

6. A good looking website
Besides your hosting script, you are also going to need a website to go along with it. Simply Google (see what I mean about the whole verb thing from #1) “free css templates”, “free website layouts” or “free web hosting templates”. Then, you need to create a full website complete with your hosting packages info, features, a little company history, support information, and more.

7. A support solution
Your customers are having trouble with their websites. Who are they going to come to? You! And you need a support solution for your hosting company if you even want to become popular! You can use a Support Ticket system like Kayako or osTicket.

8. Cash
Creating your own web hosting company isn't going to come cheap. It costs between $750-$1,000 a year for a basic dedicated server. Along with the cPanel licenses starting at $425. And, if you get WHMCS, it will cost you an extra $150-$400. Hopefully, you can make enough money to pay off all of those costs.

So now you know how to get started with a web hosting company! If you need help, there are many Webmaster communities that can help you! Good luck!

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