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Thread: Acquisition cost
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07-27-2004, 12:49 PM #1Newbie
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- Feb 2004
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Acquisition cost
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
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07-27-2004, 12:57 PM #2Web Hosting Master
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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).Alex Llera
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07-27-2004, 02:21 PM #3Web Hosting Evangelist
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- Sep 2003
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- New York
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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.
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