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8 Common Disasters, Which Fail Hosting Businesses


Some people have abilities and some prefer learning from good advices, but for professionals, nothing is better an honorable failure. Professionals have discussed a lot with each other and sorted out those, who were skilled in hosting business and detailed a brief list of causes why extremely good looking and funded hosting companies usually fail in business.


The details are as follows:

1. Free Services:

Some well knew hosting companies use this strategy to gain success. It’s a good strategy but not good for all because it all depends on luck. If you are going to use this strategy, you need to be familiar with some facts.

For example, if you are going to give your services for free, you will definitely be surprised about the fact that how quickly your funds will disappear from your account. But on the other side, if your account is funded with millions of dollars by “Venture Capital”, you need to be too wise if you want success.

2. On-Board Processing Time:

In modern century, every person wants instant results, which is why when people make a purchase via online stores, they want to see the next page to be filled with lots of information about the product they recently purchased. Therefore, if you think that 24 hours are enough for any kind of processing, then you are wrong. It is not enough indeed, especially in this modern century, as you need to process customer orders as early as possible.

You need to build strong customer support team and don’t ask customers for fax numbers. Always remember that the more data you want from customers on orders, more time customers will take to decide that they want your hosting service or not.

3. Support Reputation:

Many Hosting Companies fail due to their bad customer support service. It is a fact that bad customer support ruins the hosting business in very short time. Therefore, don’t add any Twitter or Facebook integration on your website, especially if you don’t have any strong customer support team to respond customer queries in less than 25 minutes.

Always solve customer queries in front of the public, as it will increase your reputation. You can also use virtual phone system to cater customer queries.

4. Fraudulent Transactions:

It is a fact that if you sell your services manually via internet then you may become the victim of fraud. Hosting Automation system is good, but it must be enabled wisely. Merchants need to enable Hosting Automation system on their websites to avoid any kind of fraudulent transactions because this system comes up with a large number of fraudulent transactions screening and anti tools.

This system offers smooth and adjustable approval tools, which allow you to easily capture the funds and approve it manually after looking the given transaction information.

5. Hosting Technology Information:

If you want to start a hosting business, you need to learn the basic technical skills; otherwise it will be a complete failure. This problem is usually caused by not having any technical skills. In last three years, people suffered problems due to unskilled hosts and the hosting business owners also faced serious difficulties in the panels.

You need to buy hosting structure with unlimited round the clock support. If you can’t afford it then build your own support team with skilled people. Many software sellers provide technical support free of cost. You can try any of them too.

6. Using Microsoft Excel:

Today, many hosts are using Microsoft Excel for billing and don’t set up any kind of backup therefore, when their systems hard drives fail, they usually fail their businesses with their own hands very easily. For professionals, Microsoft Excel is just ok for small kind of hosting business, but when your business grow, you need to move yourself to automatic billing tools.

You need to buy Automation hosting system that offers flexible billing tools  along with an easy backup of your all billing information.

7. Hosting Servers:

This is a minor but common reason that why hosting companies fail. Many people usually plan to run their own servers instead of using leased servers and they think that it is a best option, but usually they are totally wrong and wasting money instead because running own servers is difficult.

You need to run your hosting business in leased servers that must be located in Europe or U.S. It is more reliable and profitable approach instead of running own servers.

8. Affiliate Commissions:

On startup, new hosting companies advertise their websites on different advertising platforms for publicity and these companies always prefer to pay more and more for having new customers. New hosting companies need to invest advertising money in low frequency platform, and need to focus on search engine optimization for better results instead of wasting money on foolish and useless advertising platforms.

Final Words:

These are all the basic reasons, which is why any hosting company may fail. You just need to focus them to avoid a failure of your business.

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