This is an especially good business to be in if you are a web designer or IT consultant. It fits naturally with the business model of such small consulting firms. Hosting is an excellent source of monthly recurring revenue.

The hosting industry is one of the few profitable sectors of the Internet. You, also, can join this highly profitable business and reap the financial awards — but only if you do it right.

To build a successful Web hosting company, I offer the following two time-tested and proven rules: Focus on offering high-quality services in a two-tiered pricing schedule.

In addition, it is essential an automated infrastructure to create self-sufficient customers. For marketing, it is crucial to maximize intelligent marketing opportunities.

There are numerous Web sites known as hosting directories — that attract Web hosting customers. These hosting directories are an excellent place to advertise, but be selective in your placement. Many offer banner placement, spotlights, search enhancements, and other forms of advertisement. As a general rule keep in mind that banner ads are better for creating brand recognition than generating new accounts, so advertise based on your budget, not on your expectation of new clientele.