BoxHosting is a web hosting resale site based in the UK, but doing business across the globe. They were able to kick things off with a burst of energy due to some fantastic affiliate connections and it doesn’t show any real signs of slowing down now that the platform has been optimized by the founders.
Tell us a little about yourself, how did you start with boxhosting? Do you have a history developing these sorts of businesses?
BoxHosting was set up by myself and my business partner. We were both into building websites and had been asked by both sets of clients if we had hosting provider recommendations. We decided to create BoxHosting to offer small businesses an affordable hosting option that allowed them to scale without being cost prohibitive.
This is the first proper technology based business i’ve started but have always been interested in tech so creating a business that allows me to channel that interest and drive revenue was always attractive
How have you marketed the product and where are your customers originating from? Is it primarily SEO based? Referrals? Targetted ads
We have built an incredibly profitable partnership with our affiliate provider to drive paid on performance sales to our site. Using their expertise we’ve extended the reach of BoxHosting across 200 high traffic sites with large customer databases with our LTD offering. We’ve held off investing heavily into targeting ads with only incredibly small scale test bursts of activity with competitions to help database growth.
Continuing on the above question, are there any marketing efforts that you would recommend a new owner to prioritize? Any you’d steer away from that haven’t produced a good ROI?
I would recommend pushing a great offer on the custom backup solution and building the database even more.
Your site traffic seems relatively stable, but your financials show a decline over the past 12 months. What is causing this disruption in monetization?
The decline can be attributed to our push on custom development. We’ve brought over 700 customers into the business and we have focused our efforts on building a better solution for these customers. We developed our backup solution which allows daily backups for customers signed up to the service and easy restore functions from the support area. This is part of the strategy to bring in additional Monthly revenue streams.
What isn’t reflected in the figures is domain name re-registrations. As the business is 11 months old we will have a great deal of domain name re-registrations from the customer base which are due on an annual occurrence. This will filter through in the coming months automatically which will be reflected in the future profits.
This is a technology based business. How much engineering knowledge would a new owner need to run the business as is? Do you manage the software and updates yourself or are you outsourcing that work?
There is no requirement for engineering knowledge. We have a support function within our reseller account which means for any questions not covered off by our extension knowledge base we can get a bespoke answer directly from the hosting service.
Updates to the service are all automatic and so this is the perfect business for the entrepreneur looking for a good steady passive income with minimal time investment (we currently do 1-2 hours per week).
This is a young business, why are you selling now?
We are both working on multiple projects (outside of web hosting) and are going to be focusing on those moving forwards. I am building a number of e-commerce stores and running a cosmetics brand. Upon sale we will not be re-entering the hosting market place in the future.