Digital Farmers Reaping Cash Hand Over Fist

“You’ve gotta be kidding me” I asked.

“Nope…It’s true. That’s my cash crop”, my friend replied with a smirk.

My friend, J.P. invited into a back room filled with a dozen sleek computer cases.

Here’s the deal….

J.P. has made his living as a “digital farmer” for about 12 years. He endured the dot com crash without a scratch. J.P.’s dealt with telephone company bankruptcies and mergers….stock crashes, wipeouts and yet he’s still in business and reaping cash hand over fist.

Let me explain how he makes money……

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J.P. owns a web hosting farm.

He “hosts” business websites.

And here’s the best part…

Most entrepreneurs reject hosting as a legitimate business opportunity because of the technical skills required. Not to mention the perceived day-to-day babysitting and administration headaches.

But I discovered a way to make money as a “digital farmer” without the day-to-day nonsense.

On top of that, you don’t have to be an international “player” to make money in this business either.

You can make money “on the side” with this business and it only requires a small amount of start up cash. How much is small? I know people in this business who started with less than $500!

In addition, I’ll show you how to run this venture with ZERO technical expertise and savvy.

A web hosting farm is usually defined as an operation hosting more than 500 hostnames or websites.

But as I said….you won’t need 500 websites to make money and I’ll show you how.

Is $24 Million Per Month Really Possible?

GoDaddy is one of the largest web hosting “farms” in the world.

GoDaddy hosts more than 5.5 million hostnames!

Let’s do the math….

If you host five million domain hostnames and charge $4.95 per month each (the cost of GoDaddy’s current economy hosting package) it comes out to $24,750,000 per month!

And get this…

You can partner with companies like GoDaddy as a “reseller” and piggyback on their worldwide brand, customer service, technical expertise and marketing!

Another way to profit as a digital farmer is to start your own “web hosting farm” like my friend J.P.

Granted, if you start your own hosting farm you’ll need a purchase a “web server” and it’ll need to be “monitored” …but you can easily outsource this stuff.

You can even “lease” a web server from hosting companies, and they’ll manage the technical and customer service aspects of the business…for a small fee.

The choice is yours.

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I’ve helped dozens of entrepreneurs in this business, including an entrepreneur in New England who’s still in business today (hosting about 2,200 websites at approximately $35 each….that’s $77k per month!).

Okay, let’s take a look at this bad boy!

What the Heck Is a Web Hosting Farm?

A web server farm is a collection of computer servers maintained by a company or individual.

There are several functions of server farms. But I’ll focus on one aspect – web hosting.

Basically, a web hosting farm is a secure location which houses several computer servers with the distinct purpose of hosting hostnames or websites.

Let’s Talk About MONEY

What kind of money can you make with a web hosting farm?

The average monthly website hosting charge in the U.S. today is about $40, according to The Hosting Standard magazine.

1&1 Internet Inc. is a web hosting farm with more than 7 million paying customers. The company’s average monthly hosting charge is around $12.

By hosting 7 million websites at $12 each, the total approximate monthly revenue stream may be close $84,000,000!

Hang on money bags….the chances of you hosting 7 million websites out of the gates is pretty slim.

On top of that, seven million of anything can bring big problems too.

You don’t need 7 million sites to make money….you don’t even need 7 thousand or even 7 hundred. You can make a nice income stream with less than 70 sites!

Look….1&1 Internet is an international web hosting mega giant. When you have an operation of this size and scope there can be major costs and expenses associated with it too, so be prepared.

The good news….as I said… is you can stay small and offer premium hosting services and still make out like a bandit.

For example, Blizzard Internet in Glenwood Springs, Colorado, focuses on hospitality-related website hosting. The annual web hosting fees at Blizzard range from $240 to $600 per year. They host and manage more than 500 hospitality websites (you can do the math).

You Can Make Money in This Business with Only 10 Websites

If you host ten websites and charge an average of $30 (the average price for business websites) it would produce monthly revenue of around $300.

Granted, this is far cry from 24 million. And it certainly won’t break the bank.

But, an extra $300 each month in the current economy is nothing to sneeze at, and especially when there’s so little work involved!

The costs associated with hosting 10 websites are minimal.

In fact, most of your costs will be focused on marketing (obtaining new customers).

Once you’ve purchased a web server and find a location to store it (you could put it in a back bedroom or in the basement if you want to), the main expense will be maintaining the server(s).

Most entrepreneurs who get into this business don’t think about sales and marketing until everything is set up.

That’s the wrong strategy in my opinion.

Sales and marketing should be the first thing on your mind! I’m serious. If you learn how to market web hosting services efficiently and as inexpensively as possible….the heavens will part for you!

I’ll show you how to ramp up your marketing and close sales in this business.

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A Do-It-Yourself Business Start-Up Plan

If you want to set up your own web hosting farm, rather than partnering with a company like GoDaddy then you’ll need some tools.

Let’s talk about some of the hardware and software to get this business up and running.

1) You will need a web server.

A web server is a computer which stores web documents and makes them available to the rest of the world.

A web server may be dedicated (meaning its sole purpose is to be a web server) or non-dedicated (meaning it can be used for other basic computing in addition to acting as a web server).

A new web server generally runs about $1,500 to $4,000, depending on the size, speed, and memory.

But you can grab high-quality used Web Servers on eBay or dozens of other sites at deep discounts.

I found a used web server on Kitmondo this morning for $500.

2) You’ll need software

The next step is to configure the web server with software, like Windows, Linux, or Unix.

“Hold on Marc. You said nothing technical!”

Well, I agree configuring a web server is technical.

My suggestion would be to let someone else handle it.

3)Find freelancers to help you

You can find hundreds of eager freelance programmers at Warrior Forum, eLance.com and DICE.com.

ScriptLance is another good place for freelancers.

But for brave souls who want to do it themselves you’ll find a great tutorial from the folks at LifeHacker.com

No Kidding – No Technical Skills Required!

Don’t throw this business overboard if you’re not a computer genius or tech nerd!

If I tossed every business aside because of a lack of technical knowledge, I would have never launched any successful businesses!

Every business requires some special skills or technical expertise.

We’ve got to look past this stuff and keep our eyes on the big picture.

If you don’t understand technical issues, you can still make this business work for you.

Web hosting farms require very little technical expertise.

Simply retain a freelance web administrator if you can’t do it yourself.

Insider Tip: 90 percent of all web hosting farms use the Linux operating system

4)  Start Marketing

Once the web server is set up and configured, you can begin marketing your service and accepting Web page files from individuals and businesses.

Insider Tip: Build your business on market demand.

Most startup entrepreneurs spend too much time trying to predict costs, overhead, expenses, obstacles, regulations and all that stuff.

After worrying about all of the “busy work”… they then try to figure out how much to charge customers!

Don’t complicate this business. It’s really simple.

If you’re going to worry about something worry about marketing and closing sales!

You can find out how much the competition is charging customers with some basic Internet research.

Another valuable resource for determining what to charge customers is The Web Host Industry Review or WHIR.

One more thing…forget about buying new servers at this point.

You don’t need new web servers when you’re starting out in this business.

On top of that, you don’t need employees, complicated business structures, office space, full-page newspaper advertising, or fancy business cards either.

In other words, keep it simple and do something to get the ball rolling. You can put a used web server in the back bedroom if you need to!

An operating system like Linux is free so that shouldn’t be a concern, although the commercial application (like Red Hat) is about $250.

A new site called the Top 100 Web Hosts is another resource for determining what to charge people or businesses.

Direct Marketing Should Be A Top Priority

Direct marketing strategy focuses on a targeted audience.

For example, you could focus on small/medium sized businesses, or online gaming websites, or Fortune 1000 companies, family resorts, or even non-profit organizations.

By focusing on targeted audiences you can direct your marketing to the right places.

Insider Tip: Businesses will switch hosting services if the change is “seamless.”

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People and businesses will not be excited about switching their web hosting. That’s a fact.

Switching web hosting is almost as difficult as getting someone to switch his or her cable TV provider.

But people and companies WILL SWITCH if they can save money and it doesn’t incur any “pain”.

So…incorporate these two things or obstacles in your marketing message (and deliver on your promises)

and you’ll be fine.

Insider Tip: When you acquire new hosting business there’s a good chance they’ll stay with you for life…..like the phone company!

The most important aspect of switching a web host is disruption. People want the transfer to be seamless….without interruption!

Your marketing message should illustrate how you’ll guarantee a seamless transfer and NO interruption in service.

Domain transfer is another service you might consider providing.

I won’t get into the domain transfer market at this point, but it’s easier than it sounds.

Big Money with First Time Buyers

The first time home buyer in real estate is the only money keeping the industry alive today.

This is also true when it comes to web hosting.

The first time web host buyer is typically someone new to the Internet.

The best time to get these buyers is when they secure or purchase a domain name for their website. This is why GoDaddy is so successful.

The downside of first time buyers relates to customer service. First time buyers have a million questions.

Therefore….I think the first time buyer market is a much better fit for resellers.

Insider Tip: Price Wars! Price your service below the competition

The largest web hosting market is small- and medium-sized businesses.

According to InfoUSA, there are more than 19 million small to medium sized businesses in the U.S. and Canada.

95 percent of these companies have websites!

Insider Tip: The best marketing tools for web hosting companies are:

1) targeted e-mail newsletters

2) keyword buys in the top five search engines

3) Advertorials and

4) direct mail

If you host 25 small to medium sized business websites at $35 each this would produce $875 per month in revenue.

Granted, this is hardly “the ticket to wealth and happiness”.

But it’s certainly a nice supplemental income.

And remember, most business websites don’t require a lot of maintenance or babysitting.

Once a company’s website is up and running, there won’t be a lot of time or expense involved.

Stop the Presses!

Don’t Mess with Servers, Programming, Customer Support, Billing and Complaints…Consider THIS Instead

One of the hottest things to hit the web hosting business is the “reseller” approach.

As a web hosting reseller your primary focus is marketing. When prospects sign up for web hosting services – you get paid….for as long as they’re active!

I’m serious.

Granted, as a reseller you won’t make as much money as you would if you owned the web servers and customer list.

But you won’t have any of the headaches either.

You won’t have to deal with web servers, customers, billing, collections, complaints, refunds or even technical support!

Sweet!

All you have to do is deliver qualified prospects to the parent web hosting company, and they’ll do the rest.

I’m serious…..reselling web hosting services is the real deal.

Seven Web Hosting Farms Which Offer Legitimate Reseller Programs:

The Planet

APlus Net

Interland

HostWay

Website Source

Hostgator.com

HostForWeb.com

Simply check out each web hosting farm’s reseller program for payment plans and specifics.

Web host farms are the new cash crop.

It came be a viable side income for most entrepreneurs.

It’s an easy business to start and market…..and especially when it comes to reselling!

You’ll enjoy consistent monthly revenue without wild fluctuations too.

The downside to this business will be maintaining your Web servers and handling “newbie” customer service issues.

A “newbie” is someone new to the Internet, hosting, networking, or the World Wide Web.

The majority of Web farms automate their customer service or questions with frequently-asked-question forums (FAQs) or live online chats. If you’re a reseller you won’t have to mess with this.

Action Plan

The fastest way to get started making money in this business is as a “reseller”.

You can be up and running in a few minutes….I’m serious!

If you choose the reseller approach you’ll need to partner with a financially viable hosting company. You’ll want to get paid.

If you prefer to set up your own web server farm you’ll need a server (computer), operating system (software – Linux is preferred), technical expertise (to monitor and correct problems) and a system to handle “back office” matters (sales, customer service, and administration).

No matter which approach you choose you’ll have a viable strategy to market your web hosting services.

The best marketing vehicles for marketing and generating web hosting sales are:

• Targeted e-mail newsletters, websites and blogs. For example, if you want to reach online
• gamers, advertise in e-mail newsletters, websites, blogs, and forums with a high density of active
• online gamers.

• Keyword buys in the search engines: Google, Yahoo! and Bing are the most popular. Most of the keyword advertising in the top search engines today is offered on the pay per click (PPC) model. This means every time someone “clicks” your keyword ad (featured on the right hand side of search result pages) you are charged a fee – which can range for 5 cents and $100 per click!

• Targeted websites. Targeted websites are sites focused on a particular topic or niche, like gaming, financial news, real estate, etc.

• Direct mail. The Old Dog! This approach can be expensive, and especially with a useless worn out prospect list. But direct mail can be a great way to reach “A” Prospects. “A” prospects are people who have previously purchased what you’re selling! There are thousands of targeted mailing lists available for rent. You could reach 5,000 qualified prospects for about $2,400 for postage plus paper, envelopes and printing. If 2 percent respond and buy you’ll have 100 new hosting customers!

• Word of mouth. Everyone touts this approach (mainly because it’s free). But HOW do you get people talking?! Simple. Give people more than their money’s worth and significant discounts for referring new customers to your web hosting farm. You should also start an affiliate program. You can launch a web hosting affiliate program in just a few hours. Check out Commission Junction or LinkShare for details.

The Secret of Hyper-Optimized Websites for Generating Free Targeted Traffic

The effectiveness of a “hyper-optimized” search engine friendly website is amazing.

“Hyper-optimized” is simply search engine optimization (SEO) with one search engine in mind, such as Google.

In other words, most SEO experts can hyper-optimize your website for Google, or for Yahoo!, instead of trying to optimize it for all of the search engines.

In my experience, when a website is optimized for Google (the biggest and the baddest engine)….it will be suitable for all engines.

Millions of people are searching web hosting companies (and deals) every week on Google, Yahoo!, and the hundreds of other engines.

If you have a “hyper-optimized” search engine-friendly website (or dozens of them!), you can attract a boatload of customers absolutely free.

At the very least you’ll enjoy a steady stream of qualified prospects, for almost no cost. For example, I just searched Google for “web hosting deal.”

The second search result is a “hyper-optimized” search engine-friendly site called WebHostingDeal.com

Hyper-optimized insider tip: Make sure your domain and title page name match. You’ll be amazed how this will improve a website’s predominance in search result page results.

Anyway, WebHostingDeal.com simply lists the top or “best” web hosting deals on the Internet. The person who owns this website is most likely a reseller for the web hosts featured on his or her site….brilliant. You could do the same thing.

It’s also a good idea to review other web hosting promotions so you can see what companies are promoting. You can review web hosting direct mail campaigns at Who’s Mailing What.

Interland (a large web hosting farm which targets small and medium sized businesses) recently completed a direct mail promotion to more than 350,000 people. I was told the promotion generated a 0.2 percent response. That’s 700 people.

That doesn’t mean 700 purchased hosting services. It means 700 people responded to the promotion or wanted more information. The postage alone for a promotion to 350,000 prospects is about $122,000!

However, you could send a dedicated e-mail promotion to about 200,000 small eBusiness website owners for about $2,500 (SEO-News).

Or you could place an ad (515 x 165 pixels) in an e-mail newsletter like SEO-News for about $500.

Once you’ve secured hosting clients, you’ll be thrilled by how easy this business is.

And I’m sure you’ll really enjoy the recurring monthly billing aspect!

Whether you “go it alone” and launch your own web hosting farm, or choose to resell web hosting services of a reputable partner, your focus should be on marketing and securing new clients.

Regards,

Marc Charles
“The King of Business Opportunities”

(Ed Note:  Marc Charles is referred to as “The King of Business Opportunities” ….and for good reason. He should be known as “The King of Legitimate Business Opportunities”…because he’s launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)

Additional Resources:

Web Host Magazine
Web Host Resources
Consumers Review
Web Hosters
Web Host Industry Review
The Hosting News
Down on the Server Farm (Funny YouTube video about working on the server farm!)