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View Full Version : Web hosting business for sale
whb4s 01-10-2003, 07:33 AM Hi,
I have a very successful web hosting business, operating for more than 2 years now, is for sale due to some family issues. Here is what you will get.
1- The web site which has the following specs.
- The business web site is a 5 letter domain name, easy to pronounce and remember.
- Excellent reputaion and testimonials.
- Professionally designed web site
- Gets around 70 visitors per day.
- support forum
- help desk system
- live help system
- client area system
- network status monitor
- automatic account creation.
- and a lot more features
2- Around 500 web hosting accounts.
3- around 15 active resellers having more than 300 web hosting accounts.
4- annual revenue of around $15000, proven by 2checkout account
5- 2checkout account.
6- and a lot more features.
Originally, I was asking for $60,000. After reading all the posts below, and getting offers, I am lowring this to a final of $12,500.
Please let me know if you are interested and serious. I am ready to answer any of your questions.
Pease send all of your questions to whc4s@yahoo.com
Thanks!
ice53ltd 01-10-2003, 07:40 AM Can you confirm whether the $15,000 is correct or perhaps a typing error? I only ask because you say you have 500 hosting accounts which would make the average revenue per user $3 per year which doesn't sound right.
Also, $60,000 is perhaps too optimistic a figure when the annual revenue is $15,000.
Thanks,
-Emrul
whb4s 01-10-2003, 07:46 AM Hi Emrul,
I think I calculated it as follows.
$15,000 / 500 = $30/year/per account
The $60,000 is what I spent for 2 years and a little profit. The business is growing as the new signups are going fine. If you have an offer, please let me know.
ice53ltd 01-10-2003, 07:54 AM Oh dear, I am sorry... my head is screwed on wrong this morning :/
I would like to make an offer but I'm afraid we're not willing to dig that far into our pockets. Best of luck on your sale.
whb4s 01-10-2003, 08:14 AM Hi Emrul,
Thank you so much, wish you the very best of luck also!
Thanks a lot again!
FHDave 01-10-2003, 10:38 AM I don't think you will get anybody purchasing your business at 4 times your anual revenue. Three years ago, during the dot com boom, you may sell your business at 12 times the monthly revenue. Right now, you will be lucky to sell it at 6-12 times your monthly revenue. But at 48 times the monthly revenue? Good luck :)
HostDirs.com 01-10-2003, 10:59 AM whb - I think you are going to have to reconsider your plan here... You are going to be quite fortunate to sell your business for 1 times annual revenues - but no way you are going to get 4X. In truth, most hosts with a $3 plan billed yearly are only going to be able to get 4x - 8x monthly revenue.
I hate to rain on your parade! :)
whb4s 01-10-2003, 11:18 AM Thank you so much for your replies FHDave and HostDirs.com. The annual revenue that I wrote is the actual revenue that I got the past 2 years. It is very low, if compared to the potential of the business. I realy worked very hard. I was working for around 12 hours a day and spent a lot of money, I had no intension to sell it.
The reason for the small revenue is that I did not care much about what people pay. I cared more about providing the best service I could offer. I spent A LOT of advertising dollars. I provided a lot of free services just to keep them happy.
After all, I will be satisfied with whatever fair value for the buyer.
Thank you so much again all of you, and wish you all the very best of luck!
thanks!
WII-Aaron 01-10-2003, 01:08 PM whb4s,
I wish you the best of luck but I do believe the other opinions are correct.
Lets say two people decide to build a house next to each other. The first one hires a contractor and sits back and drinks beer all day while the contractor builds a house for him.
The other person goes out and chops trees, makes boards, digs his own basement and builds the house with his own two hands. He spends alot more time on it and puts in alot more effort.
If both houses are the same, then both people can expect to get the same price. Is doesn't matter that one person put forth a whole lot more effort, there is a market value associated with the finished product.
My advise would be to find a business broker in your local area. These guys buy and sell businesses all day long. They will give you an honest, neutral opinion of what your business is worth and may even have a list of people waiting to purchase one such as yours. You can find one in the phone book.
Again, I wish you the very best luck in finding the right person to take over your business.
Aaron
whb4s 01-10-2003, 04:45 PM Hi Aaron,
Thank you so much for your reply and advice. Wish you all the best and much more!
Thanks a lot!
Southernman 01-10-2003, 05:44 PM I feel the love in the air... Can you? ;)
It may also help your cause if you were to make more details available without having to contact you privately. (eg... size and cost of plans your customers have paid for, number of customers on monthly, quaterly, annual plans... and when renewal times come about, disk space and traffic requirements (total) of all your customers (combined) )
Using the New Home analogy above... the one that markets better (giving descriptive notices) would get more interest than the one that failed to do so.
Anyhow, good luck.
bfriended 01-10-2003, 06:20 PM The actual industry standard is 6-8 months of revenue. You also have to take into consideration those accounts that are paying monthly, or that have annual plans.
The is no way you will rceive $15,000, let alone $60K. Without looking at your revenue breakdown, you should set your focus more on about $7500 - $10000 if you are lucky.
Sorry, but that is the truth. Potential has nothing to do with it.
how much if we just want to purchase your customer base? not the site etc. Will you sell it for ~15k?
tgullett 01-10-2003, 09:35 PM To Whom It May Concern:
I understand you need to sell your business and I also understand that you are asking for a substantial price for this. To be able to ask such a dollar amount in today’s market is hard to work with. On the other hand I see a good possibility to negotiation a deal between our two parties that could lead to each others goals. I would like to ask you for the opportunity to discus this matter in detail privately through a different means of communication. Below is my full contact information that you can contact me at.
Thank You,
Thomas Chase Gullett
Intelliwire / President
CONTACT INFORMATOIN:
Thomas Chase Gullett
tgullett@intelliwire.net
P.O. Box 1998
Lexington, Kentucky 40509
Te: 859-514-7600
Fax: 859-253-1642
whb4s 01-10-2003, 10:50 PM shoney and bfriended: Thank you so much both of you for your replies, I realy appreciate it!
JIC: Thank you so much for your offer. I sent you a PM.
tgullett: Thank you so much for your reply. I sent you an email with all the details.
Thank you so much all of you!
whb4s 01-10-2003, 10:56 PM After reading all the posts, I am lowering the asking price to $25,000.
The best offer so far is $15,000. Anyone has a better offer, or can reach my lowered goal?
Please, I need to hear serious offers, thank you so much all!
whb4s 01-11-2003, 11:24 AM I just got an offer of $20,000 paid in parts. If anyone has a better offer, please let me know asap.
Thanks a lot!
whb4s 01-11-2003, 10:03 PM Hi Sahel,
Thank you so much for your reply. I just sent you an email with full details.
Thanks!
whb4s 01-12-2003, 07:15 AM Hi All,
Just to let you know, the $20,000 offer that I got is no longer available. So, here is the situation now, as I am running out of time.
- The asking price is a final of $12,500 all paid at one time, no installments, this is the bare minimum.
- It is required from the buyer to take realy good care of the customers and treat them professionally, with honesty and respect.
- Everything, including payment, must be finalized before 23rd of this month.
The first who agrees to the above, especialy taking good care of customers, will take the deal.
Thank you so much all and wish you all the very best!
Thanks!
bfriended 01-13-2003, 02:29 AM Please post once sold if you don't mind.
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