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  1. #1

    Buying customer base from another company

    We are in the process of making a purchase of customers from another company. We are purchasing just the customer base and their hosting accounts - not servers, panels, branding, etc.

    What are some things that we should check for before completing the transaction? Any suggestions on how to manage a transfer of clients?

  2. #2
    Join Date
    Oct 2013
    Posts
    72
    How does it work when you only purchase the customer base, do you have a contracted drop dead date? Do you get given any info on the current solution?

    Seems dangerous to me if you can't run the operstion in parallel for a while and risk losing some of the customers you bought.

    Also do you have an agreement with the seller to perform necessary orderly migration activities? Seems that something trivial would take much longer (and cause greater downtime) if you don't have that co-operation

  3. #3
    I wouldn't suggest going through with this at all unless you have the infrastructure to handle all of said clients since you did mention that you were buying "the customer base and their hosting accounts".

    Also, if you're not buying their databases (that's what I assume you mean by panels) and branding, then what's going to stop them from just "selling you their clients" and just going on about their business?

  4. #4
    Check to make sure the customers are legit...
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  5. #5
    1) Check if the customers are legit.
    2) How do you ensure those details won't be sold again?
    3) Unless you have the same set-up, there is a risk of customers going away post the shift.

  6. #6
    Join Date
    Nov 2013
    Posts
    62
    Can you just buy a whole customer base? How would that even work.

  7. #7
    Join Date
    Oct 2007
    Location
    Milwaukee, WI
    Posts
    142
    You will need to make sure you inform the customers about every little step otherwise be prepared to lose a large percentage of them. Hopefully you have technical experience to migrate the customer accounts to your servers and set them up in your billing system. You will want to make sure the migration is not dragged out but also goes as smooth as possible.

    What your doing is called an asset purchase agreement. You should always acquire the brand name along with related domains. This way you can redirect customers to your website and ensure others can setup a 'new' hosting company using that domain.
    Adam Hobach - CyberLynk Network, Inc. ahobach @ cyberlynk.net
    CyberLynk.net - Colocation, Managed/Dedicated Servers, VPS's, Windows/Linux Hosting, Spam/Virus Filtering, VOIP, Offsite Backup
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