Just out of curiosity how much do you think 2500 clients are worth.

Lets say the average client is paying $20.00 per month

And a drop out rate is lower than 2% per year.


I read some articles where companies were sold for $10 000 000 with just 5000 clients!

Seems almost impossible to have so much money offerd for such few clients.

roughly 1.3 million in the past market at 2.3 times annual revenue, but now you are lucky if you could get 2x. Most likely only 1.5x

You have to remember 'client' is a pretty broad ranging term. In the case of the $10 mill (webhosting.com wasn't it?), you'd have to figure out how many of those clients were $10 a month accounts and how many were multi-server using companies.

If indeed it is webhosting.com you're talking about, as I hear it he got $10 mill and only lost half the company out of it - to this day, still the sweetest deal there's been :)

Greg Moore

When should a Webhosting company sell?

More importantly what is the right size to sell at 5k, 10k, 20k (clients).

As we all know the industry is changing, is it better to hold off until there are only a few large companies left.

There is no certain size when you should sell your company, but most of the time, the larger your customer base, the higher the price per customer you will get.

As things as name branding, market share will then start counting towards the price.

There's a guy in Australia by the name of Rene Rivkin. He one of the richest in the country and did it all by buying and selling stocks. Apparently he started at 14 years of age and made a 50% profit on his first trade.

With 40 odd years of experience he was asked when's the best time to sell and he gave a simple answer.

"When it feels right"

If you're looking to sell anything in life take a look at what you have, take a look at the offer someone gives you, and if it feels like a good deal to you, then sell. It doesn't have to be the first things, or the last thing you sell, just one of them. If you get enough good deals then you'll continually succeed. If you can sit back and say you feel good about what you got instead of complaining about what you didn't then you'll be a better person.

There's no magical figure for buying and selling things. A good deal is a good deal no matter what price it is.

Greg Moore

Originally posted by need-info
Just out of curiosity how much do you think 2500 clients are worth.


Why don't you put them up on E-Bay and find out :D? Tell you what, I'll make it easy for you and give you $25 to take them off your hands.

I'mm Outbid him .. 50.00 :D

Originally posted by CRego3D
I'mm Outbid him .. 50.00 :D

Curses, foiled again :D

$50.75 - I've got you all beat now.

You should sell when you no longer feel comfy handling them or when you feel out of your depth. If you feel neither then it is like it was said 'when you feel right about it'.