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  1. #1
    Join Date
    Feb 2004
    Location
    Cyberspace
    Posts
    7

    Question 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

  2. #2
    Join Date
    Apr 2001
    Location
    Palm Beach, FL
    Posts
    1,097
    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
    Professional Server Management
    FreeBSD|Linux|HSphere|Cpanel|Plesk

  3. #3
    Join Date
    Sep 2003
    Location
    New York
    Posts
    511
    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
    - AdWatcher - From the founders of HostVoice, comes the first ad management and tracking service created with web hosts in mind. Track Google AdWords, Overture, hosting directories, local advertising, etc. Compatible with ModernBill, WHM AutoPilot, ClientExec, PayPal, 2CO and others.
    - Pay Per Click Marketing Book - Don't spend another dollar on PPC ads before you read this book.

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