I'm curious about how web development agencies handle client hosting. For those of you who regularly create websites for clients, do you earn anything from the hosting they choose? I've talked to several agency owners, and many mentioned that they either earn very little or nothing at all from their hosting recommendations. Do you just suggest hosting options and move on, or do you find ways to make money from that part? I'm trying to get a sense of what's typical in the industry right now.
2 Answers
We actually provide hosting ourselves and make about an 80% profit margin on it with two virtual servers. A lot of agencies know that hosting can be a good source of income, so they definitely don't just give that money away.
In my experience, we bundle hosting into our maintenance packages. Clients only see one invoice which simplifies everything. They don’t really need to know what we pay for hosting; it’s like a restaurant—you don’t ask about ingredient prices. This model brings in easy recurring revenue, and clients usually prefer it that way.
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