Have you ever wanted to run your own web hosting service, or wanted to know how other services can charge only a few dollars a month for web hosting? It’s actually easier than you think. When you order cheap web hosting through a service like HostGator, which costs under $10 a month, you are actually placed on a dedicated server with a bunch of other web sites. By placing a bunch of people on the same server, hosting companies can offer low monthly costs, while still generating a great deal of revenue.

If you ever wanted to start your own hosting company, you would essentially do the same thing. Order a large dedicated server, then break up your clients into smaller hosting accounts which you then bill on a monthly basis. This is what 16 year old Mate Hegedus has been doing with his web hosting company, and he would like to show you how to do the same.

In addition to setting up your own web hosting service, you should also consider your options with email hosting as well. This is commonly done through the use of a Microsoft Exchange Server — which allows you to setup POP3 or IMAP email with higher levels of security and functionality versus using other third party email providers.

No matter what type of hosting (web site or email) you want to setup, this article will provide you with the necessary details to do both.

How to Setup Your Own Web Hosting Service

To walk through the whole process and get a better understanding, you can create your own free unlimited hosting company at no cost whatsoever, by visiting Powrhost.com! Once setup, you will be provided with free and unlimited hosting with no ads!

So how can a 16 year old do such a thing using just his MacBook?

YouHosting is a company that allows everyone to go and turn just their own domain name into a hosting business. You don’t even need to buy a domain name as you can just simply get one for free at www.cz.cc.

Without paying a single dime, you may allow your clients to have 10GB of disc space each and a whopping 100GB of bandwidth each month! And it really is that simple to create your own hosting company.

Simply go to YouHosting.com and sign up (it really is free). YouHosting will then tell you to point your domain’s nameserver to them and then you can just choose a pre-done theme and voila! You have your very own hosting business. The image below walks you through the process of how their service works.

Registration literally takes a minute and you can easily set up how much bandwidth you wish to allow in certain packages and how much you wish to charge users should they wish to upgrade for more bandwidth. You can really run a super powerful and competition ready free unlimited hosting website for no cost whatsoever!

But how can we make money from this?

As mentioned earlier, you can easily add your own upgraded packages which users can purchase should they need more MySQL databases, email accounts of more bandwidth.

Here is a screenshot of my master control panel’s packages selection:

As you can see I am only providing free unlimited hosting, but I could just as easily add upgrades to generate revenue.

You can also add advertisement to your client’s webpages, allowing you to generate revenue from that. Adding advertisements literally takes a few seconds and you can just simply take your Google AdSense code and put it in there!

You Can Also Sell Your Web Hosting Service

With the help of Flippa, this should be extremely easy for you. My own free unlimited hosting gets over 10 signups a day on its own and is hosting over 1 million page views a day. This was achieved with relative ease and I am sure I could do it too. My secret? I do not place advertisements onto my client’s websites but I do place a back link on their site back to Powrhost so that it has a better SEO.

Now all you need to do is get the first couple of users to your hosting site and that shouldn’t be too hard of you have a mailing list and you can just as easily place an advertisement into a hosting forum (something I am planning to do to catapult my site’s usage even more).

YouHosting’s control panel truly is revolutionary. It gives you access to do everything that you may need to do. You can set up domain names which your customers can use a free subdomain, you can create automatic email replies and YouHosting will even create and code your whole HTML website for you. All you have to do is just direct a domain name to their servers, get a free account and you have a fully functional hosting provider!

The super admin panel even allows for customers to submit their tickets should they have any queries:

Running your own hosting company, you will run into issues relating to support, downtime and possible security and software issues. Before jumping full on into your own hosting, make sure you have a good understanding of what’s going on, as you will be hosting web sites for other people, and it isn’t necessarily something you can just walk away from.

This article was written by Mate Hegedus who is a 16 year old internet marketer from Hungary.