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View Full Version : Established Game Server hosting business for sale


dg151
06-11-2004, 07:34 PM
Hi everyone,

I'm currently letting go an established game server hosting business which has been profitable due a lack of time on my part. I have decided to focuse my time on other sites of mine and new web projects.


Customer Base & Revenue:

Number of monthly customers: 49: $1402 a month
Number of quarterly customers: 4 : $439.50 every quarter
Number of yearly customers: 1 : $408 a year


Server Costs on a monthly basis: $1066


Profits:

Upon running some calculations, the monthly profits stand at $516.50. Please note: The montly profits are usually hovering between $600-700, but we have lost a few customers this month which is why the profit margin is around $516.50 currently. However, our sales staff has been negotiating deals with potential new customers and the profit margins will be back up at the $600-700 level soon.

Total yearly profits: $7200-$8400


We currently have 13 machines online:

Managed.com: 9 dedicated servers: $795
Ezzi.net: $178
LayeredTech: $58
GNAX: $35

Along with the customers and business, this sale also includes 4 domain names and a script written by our programmer to empower our servers to perform at their best. These custom binaries are written by our programmer to reduce the server usage required for running counterstrike games by 10-30%.

To run this company successfully, it requires only the new owner to offer good support and have extensive knowledge of using linux.

For people who have more top of the line servers, you guys can make close to double the profit margins i stated by relocating the game servers on those top of the line servers since more poweful servers can accomodate way more game servers. This will help to minimize your costs and stretch your profit margins.

I'm currently in the midst of negotiating with someone who can help signup 10-15 customers a month and this would be of tremenduous benefit to the new owner. 10-15 new customers will increase the profits by a lot more.

Asking Price:

I'm currently looking to get around $5.5k-$6.5k for the business, which is roughly 8-9 months worth of the profits margin, not revenue but profits. I would think this is a reasonable price to ask for, considering the business is an established one and i have seen similar businesses going for higher asking prices or valuations.

However, i'm willing to entertain lower range offers. Interested biggers or buyers can pm me or contact me at AIM: dg163, MSN: dg16311@hotmail.com, ICQ: 15006754. If you all have any questions or wish to see proof of sales and statistics, just let me know and i will provide all information upon request.

Thanks,
Dave

AH-Tina
06-11-2004, 08:38 PM
You mention a "sales staff" and that they are negotiating new contracts. Surely you must pay them?

--Tina

TechSolution
06-12-2004, 01:14 AM
This sounds like the thread selling ZeroOneGaming.com... Besides the Layered Tech box and fewer Ezzi.net boxes, the servers match up...

http://www.webhostingtalk.com/showthread.php?threadid=264380

Trayton
06-12-2004, 03:25 AM
I sent you a msg

Flumps
06-12-2004, 06:12 AM
what makes me think is that, when a company like this is making so much money why are they selling up when you could keep the biz and make even more profit. makes you stop and think.

dg151
06-12-2004, 07:49 AM
Hi AH-Tina,

With regards to the sales staff, they are advertising the company to get new customers, in return for a free game server for each sales staff. We currently have 3-4 sales staff. There is no fee involved in the advertising. As a matter of fact, if the potential new owner was to purchase advertising on pcc search engines such as Overture and Google Adwords and post on huge gaming forums regularly and have good online gaming contacts, he/she can easily grow the site's customer base.


Hi TechSolution,

It is indeed true the gaming company for sale is ZeroOneGaming.com. The previous owner David Hamilton sold it to me for an undisclosed fee for privacy reasons. I initially purchased it in the hope of having a hosting business under my network of sites since i did not have any before this.

However, i have decided that running such a business requires lots of devotion and time to answer customer support requests. I'm afraid i do not have enough time for this as i would prefer to focuse on site development and developing my other sites to the next level, which explains why i am selling it.


Hi jaali,

I just checked my pm box but i did not see your private message in it. Could you resend it again? Do you use icq, msn or aim? We could chat online via one of these chat programs, alternatively.


Hi Flumps,

I'm selling this site because it is time-consuming. In fact its my first time running a hosting business and little did i know it requires so much effort and time on the owner's part, which is why i'm letting it go. I would prefer to stick to site development only.

Of course its nice to keep the site and make a profit month in month out, but i would prefer to use whatever money gained from this sale to fuel the development of my other sites to boost their revenue levels. This would in effect cover the shortfall of my monthly revenue derived from this hosting business.

If you have any doubts over the authenticity or genuity of this sale, i'm ready and more than willing to provide all the proof upon request, asap.


Thanks,
Dave

worldUK
06-12-2004, 01:04 PM
Hi I'm interested in the cpu usage reduction script can you sell a copy of this? can you show some stats of it in use please




Thanks
Matt

dg151
06-12-2004, 10:09 PM
Hi Matt,

I would prefer to sell the cpu reduction script along with the clients and business. However, if the business is not sold, i will consider selling a copy of the script separately.

Thanks,
Dave

TechSolution
06-12-2004, 11:43 PM
I might be interested in the cpu reduction script too. Maybe sell the clients/business/script to one and individual copies of the script to several people...

dg151
06-13-2004, 03:28 AM
Hi TechSolution,

I will let you know if i decide to sell the cpu reduction script to individual parties.

Thank,
Dave

Flumps
06-13-2004, 10:00 AM
Originally posted by dg151
Hi TechSolution,

I will let you know if i decide to sell the cpu reduction script to individual parties.

Thank,
Dave

could you let me know too :D ill be interested if its a senisble price.

Ethical Network
06-13-2004, 10:34 AM
I'd be interested in that script as well, if the price is right. Let me know.

dg151
06-13-2004, 10:59 AM
Hi Flumps and G2-Hosting,

I have added you guys to my list of interested parties in the script.

Thanks,
Dave

volmasoft
07-04-2004, 02:09 PM
dg151, please contact me if you want to carry the sale on. I have a few questions about the majority of posts people have made on your forum.

It is worrying, please contact me.

dg151
07-05-2004, 08:38 AM
Hi volmasoft,

I have private messaged you, providing an answer.

Thanks,
Dave

volmasoft
07-05-2004, 08:18 PM
dg lets talk on aim as soon as possible please.

volmasoft
08-22-2004, 07:32 PM
Site was a fraud, the guy is a fraud, if you need proof please email/pm me and i'll be happy to accomodate.

The site was illegal and is going through the courts currently, and also guess what! there was no cpu reduction script I avoided buying this company by investigating it first.

Volma