Hi,

I want to buy between 20 and 50 hosting customers and I don't know how much is normal to pay per customer.
If the customer pay $X per month and the company revenue from him is $Y how to calculate the value of this customer?

Your help is highly appreciated,
Peter

Im not sure exactly what you mean but if you mean like buy all the customers from a business without buying the whole business, wouldn't each customer cost you what they pay er so if they pay

$10 a month for their service then you have to pay $10 per month for them.

Although i gues sas this would make you no profit you would want to buy them for less i still think the cost would be relative to what they are paying.


I think i need a lie down its been a long day and even i don;t understand what i have just written LOL

Im not sure exactly what you mean but if you mean like buy all the customers from a business without buying the whole business, wouldn't each customer cost you what they pay er so if they pay

I want to buy small web hosting company with not over 50 clients but I don't want to buy the web site of the company, just the customers. My question is how to calculate how much is reasonable to pay per customer?

Thanks,
Peter

Roughly 75% to 100% of the customers yearly value.

So if a customer earns a company $100 per year then a fair buyout value would be between $75 and $100 dollars for that one customer.

If you’re buying the whole company then it’s a bit different. Companies yearly income + any equipment - lease commitments etc for 8 - 12 months, 6 months if its a small company.

So say a company owns no equipment, has one server that costs them $200 a month and brings in $1000 a month. So for that small you'd estimate on about 6 months. So 800 x 6 = $4800 buyout. Many things factor in thou, I've just simplified it. Things such as reputation, client retention (you don't want to buy 50 clients and then have none of them stay with you, if just buying clients you always want to make 2-3 payments for them based on how many have stayed with you over a few months time).

Hope that helps.

im not sure, as i said i guess it would depend on the amout they pay.

Have a look in the related offers and requests forum, there are often people selling businesses in there, it may give you an idea :)

when web hosting industry (also dot coms) where booming, companies paid around 250.... 275$ per client who had at least $19.95 web hosting account (not 20..50GB traffic accounts @ 9.95$ as people prefer here:D:D ).

Now it's less - I agree with DanielP -- something around 70..80% of yearly fees = 1 customer.

Of course customers vary - for example, with budget hosts, e.g. $2 per month or $10 per year it should be something like 50..60% of yearly fees....

(also depends if major customer base are companies or personal sites...)