My web hosting has unlimited domains available so you can sub-lease type of thing if you want as you get the proper control panel to do it all.

The customers I do websites for often need hosting and it would be a great service to add, but I've hesitated to offer hosting as I wonder about what legal responsibilities I would then have.

Any insights about what I would need to keep in mind if I decide to tread this path?

I would only offer it as part of a package for those getting the design done through me.

Tassie,

You are already on the right track by allowing only those who do design through you to also get the hosting. I would never suggest for you to do anything else. The other part is that major hosting companies offer great deals, but lock people in to two year deals - you want to stay away from locking people in. I would offer only year by year, that way if you ever decide to get out of hosting you have no further obligation to them. This, however, may make them worry (the possibility of you deciding you do not want to do it) this is why I always add, "if something were to happen and I got out of the hosting business, I would help facilitate your move to another hosting provider" (and you should always have a backup hosting provider that you can send them to).

You should always prepare a contract, nothing fancy, the same sort of contracts you would use in your development business. You should always get your hosting money upfront. Never go month to month, that is a headache you do not want (although, I can see do a six month deal, if someone really, really needed it.)

Also, If you ever do hosting make sure you get on a VPS (virtual private server), its like your own server so that you don't have to share bandwidth and you don't get charged extra by your hosting provider. Most hosting providers know if you are going to resell their services, so they will oftentimes suggest that. The cost is much higher than what you will be used to, but it usually only takes a couple clients for you to start turning over some profit.

I will add more later, if I think of anything, and I will watch this post in case you have any other questions.

Thanks Eric.

With the contract do you suggest a paper copy or do you do it electronically?

I thought about offering a service where I would offer a "one stop" experience where I would create the website, as well as secure the domain and web hosting. I chose not to do this and opted to instead walk clients through signing up for their own domain and hosting. Why? Because I don't want to be held responsible for what other people do with their website and especially email accounts when it's in my name. I also explain to them that it is also better for them to have the ultimate control of their hosting and especially domain. They can't be hijacked that way and I am out of the liability loop. I'm not saying that it's not an option for you, it just wasn't for me.

It is really up to you. I do electronic copy (with form builder) and have them submit to me the information, but I make sure it is recorded in two spots (text file on my server) and a copy emailed to me, then I can make a hard copy if I want.

To add, if it's for your web design clients, you could make it clear in your terms of service that the hosting only includes sites you develop for the client and nothing else, just a thought. Your billing should be totally up front.

James, while you are here I wanted to mention to you that I am from Omaha as well. Howdeee.

I think its best to provide a service when you're in complete control of the outcome. Like providing mainly design services, while having an option of hosting space as well. This is sort of like a Value Added Service of yours, of which you are free to decide if you want to use your current hosting resources, or perhaps source for another at your own will, not your customers.

BUT, if you wanted to go into the hosting services, perhaps having a reliable, transparent supplier is utmost. Face to face if possible. Everything else is secondary.

OH, and one more vital thing -- having a decent support system in place. Web Hosting customers tend to ask loads of questions upon their maiden voyage in getting an account set up and a prompt support personnel will ease their voyage greatly. Remember, it's still about providing good service.

I agree, I am in the process of developing what I think is a pretty sophisticated support system for hosting and design, even though right now it is just me. That reminds me, with the network we have here we should totally get a group of developers together and create a kick *ss team. Anyway, I remember reading a survey one time that asked the question what is the most important thing you need in good hosting, and the answer was support.

Well at least you will speak English, Eric.