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  1. #1

    Web Hosting Business for Sale (>$70k yearly income)

    I own the following site

    This is primarily a web hosting business. Apart from plain web hosting, we are selling scripts on a lease to own basis. Clients need to be hosted with us for 12 months before they own the license of the script. Their hosting fee during the lease period is higher than plain hosting alone.

    We currently own the following script.

    Cashcrusader ~270 licenses
    MyPTRSite - 50 licenses
    CreateYourGetPaid - 9 licenses
    JOMO PPC Search Engine - 10 licenses

    Our current revenue is as follow

    Recurring Income Summary:
    30-Day Records: 278 ($5801.10USD)
    90-Day Records: ($0.00USD)
    180-Day Records: 11 ($904.45USD)
    360-Day Records: 7 ($1019.65USD)
    Total Records: 296 ($72441.75 USD)

    About 80% of the clients are leasing the cashcrusader script, about 10% are on others and the rest are plain hosting customers. So if no clients are gain or lost, one year later, you are expecting the monthly income will drop to about $3000 as the clients are no longer on a lease to own plan but just on plain hosting plan. As we have started this business for a little more than 8 months, most clients are with us less then 6 months and many are only hosted with us for less than 3 months. So you will not expect the monthly income to drop until 6-9 months later. This is based on an assumption that no clients are gain or loss. If some clients are loss before they hosted with us for 12 months, the script license could be recycled and given to new clients. So the actual drop in monthly revenue will be lower. Actually our monthly income is still on an increasing trend.

    Our drop out rate is low because of the lease to own nature; currently we are still growing as the number of new customer coming in exceed the drop out rate. But we are seeing a slow down in growth.

    70% of the customers are paying through paypal subscription. But the other 30% are paying through e-gold and stormpay. If you are not accepting e-gold, you will loose a significant proportion of the customer as they are coming from countries that are not accepted by paypal or they don't have a credit card. Accepting stormpay is not that essential as those that pay by stormpay could probably pay with e-gold or paypal. We have less than 10 customers previously paying us through, but risk department has suspended our account because of our DOMAIN NAME. We are still waiting for 2checkout to release the $1300 they are holding up in our account. Most of these customers paying through previously have either moved to other payment method or cancelled their account with us.

    Our expense is mainly the servers. 11 servers all in servermatrix

    P4 2.8 2GB RAM 80GB HD (most have 2 HD) cpanel RH9
    $189/month x 8 and $169/month x 1
    These servers are web servers, as most of these sites are running php and mysql with high traffic; you can't expect to squeeze more than 40 sites per server of this config

    Celeron 1.7 1GB RAM no control panel RH9
    ~$79 per month x 2
    These are dedicated mail servers setup with qmail. These sites send out a lot of emails and these 2 mail servers handle more than 3 million emails a day.

    I am selling this business because it has grown to a size out of my expectation. I have a full time job and was running this business as a part time / hobby. However, the growth rate of this business is enormous and I cannot handle it just on part time basis.

    The following are included with this sale

    1. Domain name
    2. The HTML files of the site.
    3. The WHM autopilot database, I can transfer the WHM autopilot license to you if you want to have it
    4. You are expecting to take over my servers in servermatrix. Don't expect to move the clients easily to your servers as these servers are configed with a mini-qmail to pipe the email to the dedicated email server, turck mmache and some cronjobs were set on the mail servers. So moving the clients involves days of work.
    5. All the script license.
    6. I will provide some technical help and advice for you up to 2 weeks after the sale or June 30, 2004 which ever is earlier.
    7 All prepaid amount before the transfer will be kept by me, and all receivable (overdue) payments will be given to you.

    I think you need to have the following to take over the site apart from money.

    1. You need to have adequate knowledge on Linux, cpanel and setting up php/mysql scripts.
    2. Provide supports to clients on script questions. So you need to learn about how those 4 scripts we own are working.

    Risk you are facing if you are taking over this business include

    1. Customer loss. I will be canceling all paypal subscription and you will need to invoice the clients. Particularly Problematic will be some clients from China. We have about 15-20% clients from China. Many of them are paying through a 3rd party using paypal. So if that third party is not helping them to re-establish the paypal subscription, you might risk to loss a significant proportion of the clients. I will help to liaise on this, but I cannot make any promise. Secondly, I have so many Chinese clients because I can read Chinese. So if you cannot provide support through Chinese communication, a few of them might unsubscribe.

    2. Most of these sites are "Paid to Read" sites; I would say these sites are not making real money. Their advertising money is merely coming from other "Paid to Read" sites owners or members. So this "Paid to Read" is a sort of bubble economy. If this bubble burst, there might be drastic lost in clients. So far this "Paid to Read" has been there for more than 2 years still without sign of bursting.

    3. Spam problem. These sites will not send our spam as all mails are double opt in, but you might expect some members of these sites will send out spam to promote these sites. So you might get complaints from Spamcop for spamvertising. This has been a problem with my previous data centre, but so far no problem with servermatrix. Most of my competitors are also on servermatrix, so if you are keeping the servers, you probably will not have any problem.

    Please post your offer here or PM it to me; the offer should include the following information

    1. Price your offer.
    2. Whether you are taking over my servermatrix server, if not how / when are you making the transfer.
    3. What kind of support you can provide to our clients and how big is your support team

    I will consider all of these factors together and make a decision. I will not sell this business if the offer is too low, or you cannot take good care of our existing clients. I could just hire someone else to help me on running the site and I am still getting a good profit.

    This offer will open up to May 31st and might extend a little bit if I think it is warranted.

    If you want more information, you can either

    1. PM me
    2. Email me at [email protected]
    3. Get hold of me on MSN [email protected]

  2. #2
    I am very interested, but intersted in only part of it. Could I purchase part of it? I do not have over $80,000 to invest in something like this.

    Thank you,

  3. #3
    It is a bit unfair for you if I just sold part of it. I could just kept all clients who pay regularly and never ask a question and send you those troublesomeone. Though the yearly income is more than 70k, it doesn't mean I need to sell it at more than 80k, it very much depends on the 3 factors that I have stated above.

  4. #4
    Well first
    1) I am not interested in Chineese customers
    2) I don't really want those licences either.

  5. #5
    You probably don't understand the nature of the business. Without those license, 200+ sites will not be able to run. These license is the heart of the business. I would not sell this business in parts or leaving out a particular group of clients behind.

  6. #6

    Please sign on MSN if you are free.

    Derrick - High Quality Reseller/ Multiple Domain Hosting.

  7. #7
    I think I got a good proposal for you, I'll try to get a hold of you on MSN.

    jerome.g-n Specializing in corporate designs and pure CSS websites.

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