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  1. #1

    hosting valuation.. wanting to sell

    Hi guys,

    How would you value your clients if you wanted to sell/release your hosting?

    Currently hosting about 40 sites paying $14.95 USD a month..
    But most of the clients have already prepaid for 12 months.

    Any input would be great..

    Looking at selling maybe at the end of the year

    Thanks!


  2. #2
    Join Date
    Oct 2001
    Location
    Ohio
    Posts
    8,299
    Yearly prepaid clients carry about 1/4 the value of Monthly clients when I'm doing my valuating. Under my system you'd like get about $2000-3000, however you could possibly find someone with huge backing and/or little experience in client acquisitions and get $7000-8000.

  3. #3
    thanks.. yeah i have to try and find someone.
    any suggestions where to post?
    i care for my existing clients so I would prefer to deal with someone I can trust and build a long business relationship with since I will be forwarding more clients to them.

  4. #4
    Join Date
    Dec 2004
    Location
    United Kingdom
    Posts
    1,750
    Hello dev1
    Theres alot of places where you can advertise, The "Other Hosting Offers" forums is a good place to start.
    Good luck
    Regards

  5. #5
    Join Date
    Dec 2004
    Location
    Toronto, Ontario, Canada
    Posts
    285
    Of course, there will have to be legal work which will have to take place along with more detailed information. If you were to sell your clients there is no guarantee for retention. 40 clients at $15USD is $600USD a month about $7200USD a year.

    I'd give you $2000USD right now for your clients but I doubt you'll sell for $2000USD.

  6. #6
    Join Date
    Jun 2004
    Location
    Tampa, Fl
    Posts
    442
    Isn't there a community online that deals with the selling and "releasing" of such a vast number of clients. I forget the name of the forum, might want to do some looking, you might find decent offers there.
    DBLHost.com
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  7. #7
    Thanks guys, I will need to really write a detail analysis of my current client base. Retention is very good as hosted websites are developed by us and support wise it makes sense to stay onboard with our perfered hosting affiliate.

  8. #8
    Dlee: if you find the forum name let me know

  9. #9
    Join Date
    Oct 2004
    Location
    Southwest UK
    Posts
    1,159
    Here's a good example of a WHT offer: http://www.webhostingtalk.com/showth...hreadid=410346

    If you're going to sell, don't just say 'I have 60 clients. what will you give me for them?', make a case for selling and advertise. Also mention the DC, server hardware and software you're hosting them on.

    I'm quite surprised that most hosts would only offer you 3-4 months of revenue for a business. In the real world, you'd look at 3 years worth. I suppose the web hosting world is somewhat shorter-term, but still, 4 months to recoup your investment! Where else can you get that kind of return??!

    I'd also say that yearly customers are worth more than 1/4 of monthly customers - especially as the remaining pre-payment will be accounted for in the price. (eg. imagine all your clients have 6 months prepay to go, technically you should hand the remaining 6 months of payments over with the clients).

    The other thing to mention is how long the customers have been with you - if you've attracted them in the last 2 months, now want to sell, the likelihood of them remaining customers is small. (eg. I can go on ebay and 'buy' hundreds of customers.....)

    Perhaps you shoudl try ebay after all, in the end, your business is only worth the price you can sell it for.

  10. #10
    Join Date
    Sep 2000
    Location
    Alberta, Canada
    Posts
    3,109
    Another thing to consider as well is once you have a list of potential buyers, make sure you have Telephone -- if not face-to-face -- conversation with them. Especially if wanting to do future business with them as well. It will help you spot problems before the sale and possibly from some potential headaches / problems down the road.
    PotentProducts.com - for all your Hosting needs
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    ServerAdmin Services also available

  11. #11

  12. #12
    Thanks guys,

    I really appreciate all the feedback and information.
    Server is a high end P4 server and DC = Tier 1

    We would be also looking at a long term partnership to whom takes over as we will refer new web projects that require hosting to them.

  13. #13
    Join Date
    Sep 2000
    Location
    Alberta, Canada
    Posts
    3,109
    ignore
    PotentProducts.com - for all your Hosting needs
    Helping people Host, Create and Maintain their Web Site
    ServerAdmin Services also available

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