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  1. #1

    Established Host For Sale

    I am selling my hosting business not out of necessity but because I want to focus on other things right now. I am not in a rush to sell and am completely content on sitting on it for the next year or so but it would allow me to put some money into another venture if I did sell.

    I am asking 20,000 OBO. In other words if you are not serious don’t bother contacting me. My time is valuable and I won’t be able to answer hundreds of emails. (I know what company’s around here go for I don’t need an explanation! This is what I am asking and there is no need to convince me in this thread of otherwise!)

    The price is set due to the length of time the business has been running and the loyalty of the current customer base. With the sale I will stay with the buyer to establish customer trust with the new owner and to assist with minor tasks. I don’t want to see this company fail and I want the new owner to succeed. The clients will not be notified of the sale and we will ensure there is a smooth transition.

    Email me for a NDA and I will answer any more questions you have. I may or may not answer on this board and I will reply via email.

    Email Contact : [email protected]

    The sale will be done through Escrow I will not accept any other means and will not finance the purchase.

    Okay now the details

    The Company

    Started Hosting in Late 2001 and transferred all accounting to Modernbill in the middle of 2003 which is when it solely did hosting. (This is where all the stats will come from) The company is registered as a Sole Proprietorship.

    The client base is extremely loyal and happy with the support they get from me and my partner hence the offer to assist with the new owner. I will not let the company go into the wrong hands!

    The site is well established in the search engines… i.e. PR 5 homepage / PR 5 forums and many indexed pages. Most of the traffic comes from Google. This site has never been optimized and hence has the potential for a lot more if optimized properly. Example of Traffic from SE (Urchin) Weekly Hits mainly from google average about 70-90 a week from straight searching.

    The hosting has never been advertised except via word of mouth and about a month of selling on ebay in 2003.

    Just sitting there the site gets anywhere from 4 – 10 package orders a month. About 2 – 5 customers usually. This fluctuates so much that it is hard to predict but those are good numbers. Remember that is with absolutely no out of pocket advertising costs.

    Churn is about even right now, with the exception of this month for some reason it is up.

    Forecasted Annual Revenue (Directly From Modernbill)

    Clients – 98

    Package Term / Active Accounts / Monthly Income / Annual Income
    Monthly / 100 / 1322.11 / 15865.35
    Quarterly / 14 / 36.90 / 442.80
    Semi-Annual / 28 / 83.97 / 1007.64
    Annual / 5 / 12.04 / 144.42
    Totals / 147 / 1455.02 / 18104.88

    Server Specs (The Planet 2800s)
    Dual 2.8 / 2 GB Ram / 2x73GB SCSI etc. etc.
    Bandwidth Usage ~ 150 GB / Space Used ~ 65% (Home Directory)
    Backup ~ 65% (Second Drive)
    (Plenty Of Room To Grow)

    Expenses (Required)

    Server + IP’s – Dual 2.8 / The Planet – 306
    (Bandwidth Usage ~ 150 GB Per Month / Space Used – 64 %)
    Server 2 / DedicatedNow – 89 (For One Client)
    eSupport / 24.95
    Modernbill / 24.95
    Authorize and Paypal - Vary

    Monthly / 444.90
    Yearly / 5338.80

    Optional Expenses Incurred
    2nd VPS Server Housing Business Website / Rackforce – 60
    Alertra Monthly - ~ 20
    Ureach 800 # - ~10

    Monthly / 90
    Yearly / 1080

    Enom Account – Registered Domains – 61 / 7.95 Account

    Profit After Required Expenses
    Yearly – 12766


    Price Per Month / Space / Bandwidth / Clients

    Plan 1
    19.99 / 1 GB / 15 GB / 25

    Plan 2
    29.99 / 3 GB / 40 GB / 7

    Plan 3
    39.99 / 5 GB / 60 GB / 2

    Plan 1
    4.99 / 400 MB / 5 GB / 54

    Plan 2
    8.99 / 550 MB / 10 GB / 5

    Plan 3
    10.99 / 750 MB / 15 GB / 4

    Plan 4
    14.99 / 900 MB / 20 GB / 0

    Plan 5
    19.99 / 1.2 GB / 30 GB / 1

    Plan 6
    24.99 / 1.5 GB / 40 GB / 2

    The rest of the packages not mentioned below are made of up
    Nameservers / 2 Per Month
    IP’s / 1 Per Month
    Domains / 8.95 Per Year

    1 Server / 130 Per Month / 1 Client

    Email Contact : [email protected]
    I will answer only general questions via this thread.

  2. #2
    Join Date
    Aug 2004
    Good luck on the sale, glad to see you'd rather wait a little bit more time for a serious buyer
    Ankit Gupta - Cernax Hosting
    "We're always second in the industry, the customer comes first."

  3. #3
    Join Date
    Sep 2004

    Can we buy a part?

    Online power for online people!

  4. #4
    Join Date
    Feb 2005
    The Netherlands
    what is current offer (PM or thread)?
    how much do you want at least (PM or thread)?
    are enom/modernbill included?
    where do most clients come from (Europe/USA/...)?

  5. #5
    Okay will answer some neglected items in the first thread.

    1. This is Cpanel / WHM hosting.

    2. This is not up for auction. When I find a good home and a good offer I will sell. I am asking 20,000 if you can't come close to this then this is not for you.

    3. The clients and business will not be split up or sold in parts this is all inclusive. i.e. enom account with all domains is included. If it is related to the business you get it. The only exception is you will need to have your own authorize / paypal account to accept payment.

    4. Oh and one more to get specific on things it will require an NDA, that is just the way it is.

    5. Majority of Clients are from US A few from UK / Austrailia / Canada and then maybe a couple from other areas.

    Last edited by 429ba; 04-24-2005 at 03:10 PM.

  6. #6
    So you are expecting over 1 year of gross revenue for your company?

    In other words, it will take the buyer about 1.5 years before they see any return on their investment -- assuming their expenses stay the same.

    I'm sure you'll get a lot of offers if you are willing to come down a bit in price, but even for WHT I think you're asking a little much. Remember that anyone who has $20k to kick your way is likely not a startup.. and thus is more likely to have an established advertising method that is probably better value then a 1.5 years ROI.
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  7. #7
    I understand everything you mentioned.

    What I say below in no way is against you but expressing my side of the fence.

    I know what hosts go for around here and I know what I am asking.

    If it does not sell right away I am okay with that. I have had good communication with several people and the intent is to do what is best from my client base.

    Let me say this I am willing to negotiate the price just like with anything someone would sell. I won't let this go for 6x or 9x or the standard that everyone seems to live and die by here.

    If I was to offer this at a lower price I am sure I would get many more offers but that is not what I am looking for. If it takes a year to sell then so be it, I am not in a hurry.

    The real reason I put this here was to hopefully sell to someone that knows hosting and can look after the clients, instead of selling it to some guy off the street.

    Thank you all for your interest.

  8. #8
    What is 20,000 OBO ? Which country's currancy is it? All i know of is USD/GBP/EURO/CAD/AUD/Rs , what is OBO?

  9. #9
    OBO (Or Best Offer) US Currency

  10. #10
    Join Date
    Feb 2005
    The Netherlands
    i've sent you an offer

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