Managed hosting for one type of small business

Run your own rented cloud servers and offer hosting, domains, backups and support to a niche, such as WordPress sites for local trades.

Startup costA$1.5k to A$6k
Monthly revenueA$1.5k to A$7.5k
Time needed15+ h/week
First incomeMonths
  • A$1.5k-6k
  • Part-time
  • Online

Estimates for a small start in Australia, not guarantees.

What it is

You rent virtual or dedicated servers from a cloud provider, set them up yourself and host customers' sites with security, updates, backups and domain management included. You focus on a niche so your service is clearly better than generic hosting.

Your first three steps

  1. Choose a niche and test a server setup with a few of your own or friends' sites, including backups and monitoring
  2. Set up billing, terms of service and a support process, with clear uptime and response promises you can keep
  3. Approach local web designers and small business groups to offer free migrations for the first few customers
Who pays

Small businesses, web designers and agencies who want a local, hands-on host and don't want to manage servers themselves.

How it makes money

Monthly managed hosting plans at a higher price than basic hosting, plus domain fees, migration and setup fees, and optional extras like monitoring or site care.

Skills that help
  • Server administration (Linux, web servers, security)
  • Troubleshooting under pressure
  • Clear communication with non-technical customers
Watch out for
  • You are responsible for security, backups and uptime, so plan for out-of-hours problems
  • Check your obligations under the Privacy Act and the Notifiable Data Breaches scheme
  • Consider professional indemnity and cyber insurance, and check what they cover
  • Check auDA rules for .au domains and registrar requirements
  • Check whether you need council approval for a home-based business, and register for GST once you reach the threshold

Deep research report · Australia

Everything you need to start: managed hosting for one type of small business

Researched with live web search for Australia: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to start a managed hosting business?

Startup costs are typically estimated at around $1,500 to $6,000, depending on the servers you rent and the tools you set up. You are responsible for security, backups and uptime, so allow time and budget for those.

How much can a managed hosting business earn?

Monthly revenue is typically estimated at around $1,500 to $7,500, depending on how many customers you host and the niche you serve. Plan for at least about 15 hours a week, including out-of-hours problems, and register for GST once you reach the threshold.

What rules should I check before starting a hosting business?

Check your Privacy Act and Notifiable Data Breaches obligations, auDA rules for .au domains and registrar requirements, and whether professional indemnity and cyber insurance suit you. Also check whether you need council approval for a home-based business.

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