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View Full Version : Acquisition cost


rrambini
07-27-2004, 12:49 PM
I've paid more than $240/account in the past. I know this is very hard question to asnwer: How much one should pay per account? Would $1600/100 account be realistic, too high or too low? Share me your hosting wisdom please!!!

Thanks,
Rob

allera
07-27-2004, 12:57 PM
It depends on a lot of factors, but the most common prices I've seen are 6-12 months revenue.

Eg: a $5/mo account would sell for $30-$60.

It really depends on the quality of the accounts, among other things. Payment terms are also factors into the purchase price (lump sum, structured payments, revenue sharing, etc etc etc).

AdWatcher-Boris
07-27-2004, 02:21 PM
A large factor is whether the client pays on a monthly or an annual basis.

As somebody mentioned on these forums, a monthly client is an asset, while the yearly one is a liability.

Boris