What happens when you out grow DSL?
 

I am using DSL at home and am trying to get my server set up. What happens when my site gets popular enough where DSL can no longer handle it or when I get hosting customers who have more demands? I would like an in house server, but it seems like the cost of a decent connection then would completely kill that idea.

If you want to do webhosting for profit I would co-locate your server with a colo provider. We use www.colostore.com, they offer space for a 1u to 4u or a mid-size tower, and a 1mbps connection for $49.99 per month. Additional 1mbps is $49.99 per month. We have been using them for 7 months (6 months old server 1 month new server)total now and have had a single problem yet.

And then there is www.burst.net, www.steedfastnetworks.com, www.colo4dallas.com ect, There are 100's of places that offer co-location. You just got to pick the right one.

If your dead set on hosting for home you could always get another DSL line and buy a load balancing router. How well they work I don't know.

I would recommend co-location, that way you dont run into problems like you would with a DSL line.

As has been suggested, having your server colocated in a datacenter is the best option.

But if you can't afford it, I suggest cable. Here, you can get cable up to 8mbps - I believe that the maximum ASDL can pump out is around 4megs - and that's if you are next door to the exchange.

At the current time ADSLs limit is around 8/1Mbps (down/up). Which is just as fast as cable in most areas, if not faster. Not everyone is going to pay for 8Mbps down, most cable companies severely limit your upload speed anyways. Comcast just recently raised their upload speeds for Gold tier accounts to 765kbps, Silver is still at 356kbps.

How do I know when it is time to move my server to a colocation? I'm making about $50 - 75 / month from advertising and from what I've seen (quick glances, I might be way off) it seems to be around there. Is there a certain limit of bandwith I should be moving my server by? When did you decide to move yours?

I don't think there is no set limit, as long as your not maxing out your bandwidth you should be fine. Do you have mrtg installed on your server? Its a nice tool for monitoring your servers bandwidth. There was no need for moving my server to co-location. I moved it because I wanted to. Tomorrow my server is moving back home for the time being.