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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