Website development is typically a one-time order, or at most, a few repeat orders when the same studio is contacted for some updates. Therefore, web development studios can introduce an additional service — their own hosting using a VDS server, an equivalent of a physical server created through virtualization. Moreover, a client hosting with the studio is more likely to stay with it longer, as migration would require additional effort. Thus, by selling just one additional service, you increase both profit and loyalty.
Hosting on a VDS Server as an Additional Revenue Stream for a Web Studio
Hosting can be bundled with the main services, making it easier for clients to purchase: instead of searching for a provider on their own, understanding rates, and control panels, the client avoids the hassle in one go.
Hosting can realistically be offered:
- as part of a package (development + hosting + domain name or development + hosting);
- for one or two months at a discounted rate when ordering a website of a certain complexity: this can be a commercial advantage;
- as a standalone service when the client decides where to host the website after it’s developed.
You can come up with other options as well.
Typically, a web studio hosts simple websites, landing pages, and one-page sites, as clients want the least amount of hassle with them. However, multi-page websites can also be hosted.
How Much Can You Earn by Selling Hosting on a VDS Server?
In most cases, you’ll be offering virtual hosting to clients while renting a virtual server yourself.
A VDS server is a cheaper virtual machine than a regular physical server and simulates a real computer in almost every way. Such servers are hosted several at a time on one physical machine, making it slightly cheaper than a large, powerful physical machine. So, the first step is to purchase a VDS with the necessary resources for your goals. For example, the simplest plan would cost around 600 UAH per month — you can save a bit by paying upfront for a longer period, such as one or two years.
You can offer clients two options:
- Simple hosting, where the user doesn’t receive a hosting account, but just has a website and doesn’t think about how it’s administered. If changes are needed, they simply contact the agency, and its employees service and administer both the site and the client’s hosting.
- Hosting as a separate additional service with its own rates and client accounts.
Let’s look more closely at the financial possibilities of the second option. Suppose you rent a small server for 600-700 UAH per month and host 10-20 simple hosting plans for one website (clients of web studios often don’t need more than this). Simple hosting could cost, for example, around 120-150 UAH per month. In this case, you earn 1200 UAH from clients — that’s 50% profit or more.
If you mention on your agency’s website which provider’s servers are used for hosting, you could get a large partner discount, increasing your profit even further.
How a Web Studio Can Start Selling Hosting on VDS
There are three steps: renting a VDS server, deciding which software to install and how to accept payments, and starting to sell. Here’s what the web studio does:
- rents server resources and collaborates with a hosting provider;
- offers hosting under its own brand;
- administers clients’ hostings;
- sets pricing policies;
- communicates with clients and handles complaints if something goes wrong.
The rest is done by the virtual server provider, which is rented for client accounts.
Renting a VDS for Hosting
First, you need to rent a virtual server. Since there’s probably no one on your team to administer and install all the necessary programs, it’s worth considering a managed server service. This means that all administration tasks are handled by the hosting provider, and you simply sell the hosting under your own brand, communicate with clients, and process payments.
You can determine the type of server to rent based on disk space and power, depending on how many potential clients you expect.
Software for a Hosting Server on VDS
You’ll need a control panel that allows you to create multi-level access and divide the server into virtual hostings.
This could be cPanel, which is well-known and easy to use, with a graphical interface. It has built-in security, the ability to make backups, and create hosting packages with different rates. With this panel, you can even manage additional services if you want to offer them: for example, adding limits on traffic and disk space, as well as SSL security certificates and domain names.
Alternatively, you could use DirectAdmin, a panel designed for easy site management via a web browser, which also offers convenient options for reselling hostings. It additionally allows DNS management.
It’s important to have a convenient control panel both for the web studio, to quickly manage the server, and for clients, if they plan to do anything on their site themselves.
Software for Organizing a Payment System
The VDS server and management panels should be complemented by a billing system to accept and process payments from clients. Almost all existing payment systems allow adding payment widgets to the site — Privat24, Monobank, LiqPay, and others. However, there are programs for automatic billing and easy payment.
WMHS is a convenient billing system for beginners, easily integrates with most hostings, accepts payments even in bitcoins, and provides accounting documents. The system allows working with client accounts, technical support through tickets, and modules for accepting payments via popular Ukrainian payment systems.
Organizing the provision of additional hosting services to clients who order website development can be beneficial for all parties involved. The client gets the opportunity to get everything at once, in one place, and at a favorable price. The web studio receives a steady stream of income, even when the client doesn’t need any changes to the ordered website. Psychologically, it’s much easier to request website updates from those with whom you have ongoing cooperation, so clients will return more often for other services.
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