Hey everyone! I am currently debating buying a hosting website for quite a bit of money. The site has 18,000 users, 100-200 new a day, a ton of features, users server from zipservers at 424 p/m, is 40,000 alexa rank and google pr 4. The site has its own advertising that users can pay for, CJ, and adsense and is earning between 1200-1800 a month. Getting aout 100,000 pageviews a day. All of this information has been verified and is legit

My background: Recently bought and sold several domains and websites. No hosting knowledge or technical knowledge.

Some of my questions: First, the guy is international, how would the sale go through, how can I make sure I don't get screwed? Second, quick learner and seller will provide 90 days full support and control if wanted, will I be able to keep up with the site? What type of work would I have to do? Is it hard to upgrade accounts support tickets, other stuff?

These are just a few of my concerns I would appreciate as much insight and advice that I can get.

A hosting website? Do you mean a hosting business? If so, those numbers are HIGHLY HIGHLY suspect. If we say he's getting 150 new customers per day - then we have to believe that he gained all of his customers within the last year (to be generous). Hosting doesn't grow that much unless he's severely overselling or if these are garbage clients.

Further, why would he have adsense on a hosting company's website? That doesn't make sense. You're, in effect, advertising hosting for other companies on your website.

Seriously, this whole deal is very suspicious. When you say you verified it and its legit, HOW did you verify it exactly?

--Tina

I can't say I've ever dealt internationally, but first thing I would suggest is (1) Legal Counsell and (2) Escrow for the sale.

Also, as for supporting it, there are companies you could hire that could take over your technical support, and basic administration. Some inexpensive, some more expensive but would handle more.

Tina, "A hosting website? Do you mean a hosting business?"
It is a free hosting website and the business. The website is only 9 months old and anyone can check to see the new users each day. It has about 700 new members since last Monday. The adsense is locacted on the homepage and every users footer. The seller placed my adsense on the site about 4 days ago and I have made roughly 80 dollars with around 100,000 views a day. The google ads are for other hosting websites but most of them are paid. I also have CJ earnings pageviews and his paypal page views. Thanks for your help and let me know you response,

Ryan

I can't say I've ever dealt internationally, but first thing I would suggest is (1) Legal Counsell and (2) Escrow for the sale.

Also, as for supporting it, there are companies you could hire that could take over your technical support, and basic administration. Some inexpensive, some more expensive but would handle more.

Can you give me some examples or what to search, ive looked but can't seem to find any?

Well for tech support companies, touchsupport.com, logicsupport.com, caleris.com, I am familiar with Touch. All seem good.

As for legal counsel, check for a business lawyer in your area.

Will those companies essentially run the website for me?

I'm pretty sure you're not allowed to post adsense on websites other than your own, since Google approves the content. You might want to check to make sure that posting those ads on the free users accounts is not violating the adsense terms of service.

--Tina

I double checked before I put the ads up, it is authorized under the TOS, do you have any other thoughts? How much knowledge should I have? How the transfer would work?

Will those companies essentially run the website for me?

Yeah. You can hire system administrators, support people.

Awesome thanks for the advice Dan. Is it hard to operate by myself, how much knowledge do I ned?

I think Basic knowledge is enough. Work towards learning more as you can. Putting a good team around you should be enough really.

Thanks a ton Dan. I am definitley going to use escrow and have seeked legal advice. Only concern is that international contracts are pretty much impossible to enforce, is escrow enough to ensure that I get the domain and access to the entire site? Does anyone else have any expereince with this?

Thanks a ton Dan. I am definitley going to use escrow and have seeked legal advice. Only concern is that international contracts are pretty much impossible to enforce, is escrow enough to ensure that I get the domain and access to the entire site? Does anyone else have any expereince with this?

No Problem.

That's really a question for a lawyer. I would say this though, if you hire a good lawyer, he should keep things in check for you. Be skeptical, ask a lot of questions, keep involved in everything. That should keep you straight.

I know people that do free forum hosting and use google ads, the users are even allowed to have their own domain, google doesn't mind... I suggest you hire people to help support the site, something like this can grow and be too much to handle. Is this all being run off of one server at the moment?

I know people that do free forum hosting and use google ads, the users are even allowed to have their own domain, google doesn't mind... I suggest you hire people to help support the site, something like this can grow and be too much to handle. Is this all being run off of one server at the moment?


I am not sure how many servers, it says its a server farm with clusters? Do you have any suggestions about the transaction process?

Use escrow services to smooth the transaction process and make sure that there is a way to scale up if the number of users keeps growing at the current rate

Will the escrow service ensure that i get the domain and have control over the site?

All the escrow is gonna do is ensure that your goods are secure before the money is released to the seller. Your lawyer will setup the deal to ensure youg et the domain and the rest of the goods.

Basically escrow means you give the money to a third party, they hold the money until the other person gives you the domain and the server control, may i suggest you change server passwords immediately as an extra precaution.. Once you feel that you have full control you give the word to the escrow party for them to release the funds to the seller.

So it is legit to use escrow for an international hosting website/ company purchase?

I think escrow is a must, also I was trying to read back but I am unclear on this.. this is a free web hosting company that is supported by ads... do they offer ad free hosting as well? Also do they have a way to prevent spammers from signing up and using your web space for things such as phishing scams and spamming? You should see if this sort of system is currently in place otherwise you may have to spend more to get it done right.

Yes this is a free web host that is supported by ads, CJ, and advertising space on the website, the ads are only on the footer. You can get ad free hosting for a 9.95 donation. Thanks for the info about spammers and phishing as far as I know the system is in place but I will double check.

I think Escrow is a requirement in this case. Ensure that you know that you'll also be taking over his contracts from ZipServer and whoever else, and also, make sure that ZipServers changes all the Billing over to you, so that you'll have full control over the servers.

Anyone have any more thoughts on how much work it will be and if I should keep the seller on board? SHould I hire outside?

Also, this is the support system he has in place: Not 100%. But the way the registration process is setup now, this problem is elimiated almost 100%. First a user have to register for a forum acocunt. Then confirm the email, then a new email is sent with a link to the hosting registration, then the user will have to click this and register for a hosting account, and once again the email needs to be verified before the accoun

This is so dependent on so many details I think you should listen the the advice given here several times and consult an attorney. You really need legal advice and they will be able to structure a plan for you if you wish to proceed. I would also ask for an exact and detailed description of what you are getting (how and what the website is hosted on, who will migrate it to your hardware if needed, etc...) and what you are not getting in the deal.

I have to say (again), I'm very suspicious of this deal. As Nnyan said, if you're going to move forward you should get EVERY detail in writing and confirm everything. If this deal is so profitable, why is the guy selling after only doing it for (educated guess) less than a year? It just seems a bit fishy to me.

--Tina

First off I would like to thank everyone for your help and guidance! I have decided not to make the purchase for the sole reason I am graduating college and I feel like I am getting ove my head. I would rather just relax. If you guys are interested the seller put the site for sale on ebay:). Thanks everyone!

mind linking to the auction

will i get in trouble?

not sure actually :/ I need to learn the rules on here more

will i get in trouble?
Why do you think you will get in trouble? :angel:

I took a look at the auction, be glad you dind't go through with it, no site should have 7.5 million page views and be alexa 40,000. Should be lower...

URL to the auction?

--Tina

ok here it is: http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&ssPageName=STRK:MESELX:IT&item=280224569010

He says he started it about a year ago. Do I win a prize for calling that one? :D

Seriously, a hosting company started a year ago is NOT "highly established".

He also says that he has one server and he's hosting, by his claim, around 65,000 websites on it. Two words come to mind...HOLY CRAP.

--Tina

The site has its own advertising that users can pay for, CJ, and adsense and is earning between 1200-1800 a month. Getting aout 100,000 pageviews a day. All of this information has been verified and is legit



ADSENSE that too on a business site with 100 new orders / day???

He says he started it about a year ago. Do I win a prize for calling that one? :D

Seriously, a hosting company started a year ago is NOT "highly established".

He also says that he has one server and he's hosting, by his claim, around 65,000 websites on it. Two words come to mind...HOLY CRAP.

--Tina

We started 4 years ago and we dont get 100 orders / month yet. I wonder how he gets 100 orders a day!!!

Check out the forum every day, its is increasing steady at 100 users a day!

50 news users since yesterday guys, this isn't bull crap.

Also, isnt a year old website pretty established comparatively?

Also, isnt a year old website pretty established comparatively?

Its not a year old. Its 10 1/2 months old. No, that's not long enough to be considered established.

--Tina

50 news users since yesterday guys, this isn't bull crap.

Fifty new users since yesterday? I thought he told you 100 to 200 per day? Also, I thought he told you it was a server farm? The auction says ONE server.

Are these quality users? Do they block signups from China, Vietnam, etc.?

It might not be "bull crap", but from everything that I'm reading on the auction it certainly isn't worth what he's asking and A LOT of things don't add up. I wouldn't invest more than $5000 in this at the most (if at all) and I wouldn't send him $1000 upfront and the rest via escrow - it would be 100% escrow.

This smells like a "get rich quick" scam.

--Tina

Gotcha. The users are quality, the reigstration process is pretty instense. The users have to confirm emails and activate their accounts. 50 since last night, it should be at 100 before the end of the day?

Gotcha. The users are quality, the reigstration process is pretty instense. The users have to confirm emails and activate their accounts. 50 since last night, it should be at 100 before the end of the day?

Then it sounds like a great deal and you should probably jump on it. :rolleyes:

--Tina

Haha! I seriously doubt your expertise though, you didnt think you could put google ads on a free web host. Its pretty common knowledge that you can

Haha! I seriously doubt your expertise though, you didnt think you could put google ads on a free web host. Its pretty common knowledge that you can

I don't use Google Ads and have no reason to. That doesn't have any bearing on the fact that I've run, bought and sold many hosting companies over the last 11 years (including free hosts) and have a pretty good sense of what's a good deal and what isn't.

--Tina

65,000 websites on one server!! I wonder what the support overhead is on that!

Probably all spam sites.

This smacks of trouble tbh.

Did you guys even check out the support forums, read some of the comments and stuff, this site has a great reputation. Also, i looked at the reviews on the biggest web host review and it was ranked #5 overall, it is number 2 for fastest host.

Hey guys it turns out he hosts a little over 15,000 websites on one server. The one server is locacted in a farm of severs. He has 65,000 backlinks. Anyone else have more thoughts?

Anyone else have more thoughts?

Yeah, why are you hyping up this "company" so much? I have a sneaky suspicion that you're the owner of the auction and had this all planned out from the start.

Come to WHT and start a harmless thread, generate some interest in it by throwing around high numbers, then back out and provide a link to the eBay auction, then continue to hype up the sale.

If you're not interested in buying it, why are you still talking about it?

Haha, i wish i was the current owner because then I wouldnt have to risk 10,000 dollars. Sorry to keep talking about it Pat, I just wanted to hear people's opinions. I have only heared negative opinions so far, and these negative thoughts are all based off misinformation! I am just trying to stir up the pot and see what you guys think! I am not going to buy this site but want to buy a site down the road. I appreciate everyones comments so far and am just trying to get as much info as I can on what to look for etc. Sorry, I am defending the site, but I thought it was a good deal?

ryguy4025 AH-TINA has over 8000 points, I really wouldn't be doubting the expertise of such an experienced user. It is users like AH-TINA that help people out and point them in the right direction, we need more users like this.

I agree with her credentials for sure, but she didn't understand google ads on free hosting sites? This is how most free-hosts are able to operate.

First off I would like to thank everyone for your help and guidance! I have decided not to make the purchase for the sole reason I am graduating college and I feel like I am getting ove my head. I would rather just relax. If you guys are interested the seller put the site for sale on ebay:). Thanks everyone!

I think its probably for the best. One rule in business is to never try to grow too fast. In your case, going zero to 60 in .2 seconds on your first drive with a car.

ryguy there are way better company than google ads, first off yahoo betas add program pays way better as well as tribal fusions ad program. Google ads aren't even that good...

Thanks, what do people think about starting your own hosting business? Hard, costly? Has anyone done it and can anyone provide insight?

Hey guys it turns out he hosts a little over 15,000 websites on one server. The one server is locacted in a farm of severs. He has 65,000 backlinks. Anyone else have more thoughts?


On the type of server he's quoted, 15,000 sites on the server is insanely overcrowded. I suspect that most of those "sites" are garbage users and not even live, which is why he's able to get away with it (no traffic = no load on the server). This is also why this deal isn't worth anywhere near what he's asking.

Of course the one server is located in a farm of servers. ALL servers, unless they are located in someone's hallway closet, are located in a farm of servers. That means nothing to this deal. Basically, he's renting a $400 server from a datacenter that has 1000s of customers who also rent servers from them.

You're getting one servers worth of free hosting customers and you have NO WAY of knowing how many of those are quality customers. Why? Because we've already established that he has 1000s and 1000s and 1000s of sites on one server - and the server has yet to blow up. Normal servers, such as the one he's posted about, can probably reasonably handle 200 or so accounts.

This deal, from all evidence that is available, is worthless - which is why I suspect he's asking for $1000 upfront outside of escrow. As soon as the buyer gets wise, he'll probably not see the escrowed amount...so he's $1000 ahead of the game either way.

The forum users and posts? Look at the usernames and you'll see a pattern - a lot of them look like spam bots (anyone running a forum knows about those!). The user to post ratio doesn't look right to me. Also, a hosts forum is not an accurate way to assess their worthiness. Everyone knows that bad posts can be quickly removed by the host.

--Tina

If the sites making 1200-1800 per month, it doesn't really make sense that he's selling it for 10k? As thats 14k-21k per year. Also you mentioned you made 80 dollars in 4 days? Even 1200 per month equals 40 dollars per day. So those figures don't stack up.

I also wonder if you are the seller, or have a vetted interest here. ;)

I can't say I've ever dealt internationally, but first thing I would suggest is (1) Legal Counsell and (2) Escrow for the sale.

Always best to proceed in safer way.

In my experience, and this may not be true to this situation, many of the free webhosts get a lot of signups to use the mailservers for spam. Many free webhosts restrict a lot of stuff because of this. If this is a one man operation, he may not.

I'd be interested to see if his IPs are on a bunch of the blacklists. These sort of signups do you little good, as their websites probably won't see much traffic, if any, and the ads won't make much money.

Being experienced in AdSense as well, I also would have questioned them being used in a FreeHost, because Google places a lot on owning the website content yourself, what the content is, and legit users. For instance, if he required a certain number of clicks from participates OR anyone else for that matter on that platform does, then you violate Google's TOS. Multiple clicks from the same volume of people will flag your AdSense account and you usually can explain them, but not they may still suspend it.

Really, you are putting your AdSense account at a big risk running them on a Free Webhost. Maybe this works out in this situation, but does the benefits outweigh the risks?

Just some things to consider.

Am I the only one that suspects that the OP has some strong relation with the person who has the free hosting business (or maybe he is the same person)?

He registered yesterday and all of his posts belong at this topic. Almost all posters have something negative to say about this auction, but he is pushing it a lot that there is something good....

I may be wrong ofcourse..

Am I the only one that suspects that the OP has some strong relation with the person who has the free hosting business (or maybe he is the same person)?

He registered yesterday and all of his posts belong at this topic. Almost all posters have something negative to say about this auction, but he is pushing it a lot that there is something good....

I may be wrong ofcourse..

I also hinted at the same thing at the bottom of page 4, someone else has as well.

Hey guys, thanks for all your support and help. I had no idea that there was this much information involved in buying a website host. I am no longer interested in the site as Tina and others have shown me there is way too much to risk. What I would like to know is people's opinion of starting a web host site, free or paid for? How would I even get started?

Does anyone have any thoughts on this auction http://marketplace.sitepoint.com/auctions/35169#comment153512? It seems like its the same concept free-web-host? Are Free-web-hosts bad?

The main problem with free webhosting is the big amount of sites that contain illegal software, music links, spamming etc. etc.

You can always stat a web hosting business (with paid customers), but you have to differentiate yourself from the million of other hosts.

Targetting local and having a niche is the best - you should not try to compete on price. If you search at this forum, you will find tons of valuable information.

I also hinted at the same thing at the bottom of page 4, someone else has as well.

Yes, you are right, I probably skipped a few posts...

I don't think the OP has anything to do with the auction. I think he genuinely believed he found a deal that was too good to be true and was sucked in to the hype that the seller was pushing.

--Tina

Does anyone have any expereince starting a hosting site? How would I even start? What are the startup costs?

Why don't you start a new thread? On the other hand there is almost weekly a new thread about starting a web host. Search is your friend :)