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  1. #1

    Hosting company for sale (maybe) w/200 clients

    Hi all, I am thinking about selling my hosting business. It is growing out of control and I cant handle all of it.

    I have 35 paying clients with a total of about $300 a month income, naybe a bit more.

    I have about 150 clients hosted free, they have to have my Google banner on their websites, and I make about $80 a month from the google adsense ads.

    I have 2 domains which both have ClientExec installed and I have a reseller account with Clentexec so the 2 licenses I use for my 2 domains are basicly free since I have 3 other people that pay me monthly ($10 a month a peice) for their ClientExec billing system.
    The main website receives about 150 unique vistors a day, and 300-400 visits a day, and has an average signup rate of 2 a day (Paid) and about 7-10 a day (free).

    The forum has 300 members and almost 3,000 posts.

    Currently I have 2 reseller accounts that house all the clients. The reseller accounts in total cost $15 a month for 7.5gb disc space and 125gb bandwidth. I also have an affiliate program with another host to resell their reseller accounts at a discounted rate. (30% 0ff, so a 2gb/45gb reseller plan costs you $3.50 a month and you can sell it for whatever you want.

    So the monthly income total , is about $400 or more.

    If you are interested, and would like more detailed info, please post all questions here, or PM me and I will reply asap.

    I have not set a price for this, as I am really not sure what to ask for it. SO please reply with your offers.

    Thanks in advance

  2. #2
    Join Date
    Aug 2003
    Location
    wilbur ,washington
    Posts
    218
    ill pay you 1200 for the paying clients

  3. #3
    Join Date
    Jun 2004
    Posts
    2,853
    400x12 = 4,800, look for that much or more, captureroftyme.

  4. #4
    $4800 seems a bit high, but if someone wanted to offer it I wouldnt turn it down!,,lol

    By the way, I should clarify that offers should be in USD$

    Here is a screenshot of the monthly income report produced by my billing system
    http://directmusician.com/income.JPG
    Last edited by build-a-host; 06-02-2005 at 04:17 PM.

  5. #5
    Join Date
    Jun 2004
    Posts
    2,853
    When you sell a website, it's expected that the buyer will pay one year (12 months) the income, plus more.

    Just a heads up, nothing wrong with extra money

  6. #6
    Join Date
    Aug 2001
    Location
    Atlanta
    Posts
    1,170
    Originally posted by Camp2Win
    When you sell a website, it's expected that the buyer will pay one year (12 months) the income, plus more.

    Just a heads up, nothing wrong with extra money
    I know you're just trying to help, but blanket statements such as this really don't help anyone.

    It's "expected" that the buyer will try to purchase the asset for it's perceived value (or less), and the seller will try to sell for his perceived value (or more). The actual sale price lies somewhere in between. That's about as good as it's going to get with the generalities

  7. #7
    Join Date
    May 2003
    Posts
    1,708
    Actually you shouldn't sell for less than your annual gross. In most markets it is 120-300% of your one year gross income, the webhosting industry is so flooded with kiddie hosts though it diminishes the values of the companies.
    ~~~~~~~~~~~~~~~~~~~~~
    UrNode - Virtual Solutions
    http://www.UrNode.com

  8. #8
    Join Date
    Feb 2002
    Location
    Philadelphia, PA
    Posts
    96
    It's worth what someone is willing to pay for it at that point and time. If you want to know what it is worth on WHT auction it and find out.

  9. #9
    If I put it up for auction though, will I be forced to sell it to the highest bidder, no matter the price? I just dont want to get robbed of course.

  10. #10
    Join Date
    Feb 2002
    Location
    Philadelphia, PA
    Posts
    96
    You should have in your head a price that you would be comfortable selling the at site. For instance, if you're making $400/month, subtract your expenses and go from there. If the site is costing you money, you may want to unload it quickly unless you feel you can turn it around. Don't forget to factor in time you spend on the site. This is also an expense. Instead of trying to put a number to it, I would base it on the pain factor. How many more months can you live with the site before you do an rm -r on a directory? Whatever the pain factor is there's your number? Can you live 6 more months? Sell at 6, how 'bout 12? Now this is in the absense of needing money for another venture or bill. Again, determine when you need the money how much and if you kept the site how long would it take you to generate the money needed. Bottomline is you have to feel comfortable about selling and unless your back is againast the wall to get the thing sold you shouldn't have any regrets.

  11. #11
    Join Date
    Mar 2003
    Location
    Canada
    Posts
    9,851
    Originally posted by kris1351
    Actually you shouldn't sell for less than your annual gross. In most markets it is 120-300% of your one year gross income, the webhosting industry is so flooded with kiddie hosts though it diminishes the values of the companies.

    I would like to see some examples of businesses selling for 3X annual gross.

    Annual gross means nothing. Repeat, nothing.

    If the annual gross is $5000 and expenses are $8000 are you going to pay $15000 for the business?

  12. #12
    Exspenses only total $20 a month

    $15 for the reseller plan (7.5gb/125gb)
    and $5 a month for the ClientExec
    I also have a toll free #, but that will not be included obviously.

  13. #13
    Join Date
    Aug 2003
    Location
    wilbur ,washington
    Posts
    218
    am i the high bid for monthly customers?

  14. #14
    Join Date
    Dec 2004
    Location
    Toronto, Ontario, Canada
    Posts
    292
    I would purchase your company, however, you have to many clients for your overall income.

    [edit]
    like webuyhosts, i'll pay you just for the paying clients...
    [/edit]

  15. #15
    Join Date
    Mar 2003
    Location
    Canada
    Posts
    9,851
    Originally posted by captureroftyme
    Exspenses only total $20 a month

    $15 for the reseller plan (7.5gb/125gb)
    and $5 a month for the ClientExec
    I also have a toll free #, but that will not be included obviously.

    So you have 185 clients sharing 7.5gb space and 125gb transfer?

    Alot of hosts will sell 100gb of disc space, when they actually only have 50gb of disc space, this is known as "Overselling", causeing major strain on the server, which then results in your website being slowed down. We will never put financial gain in front of customer satisfaction, that is one of the reasons we have decided to design our web hosting plans so that there is no overselling. If we sell you 5gb of disc space, thats what you get!
    This is a quote from your site.
    Are you sure your expenses are only $15/month for a reseller plan because something here doesn't make sense.

  16. #16
    Free hosting clients are on one server, and the paid are on another. I dont cram in all the paid clients, but I agree there are way too many on the free server, so I shut down free hosting signups yesterday.

  17. #17
    Join Date
    Jun 2005
    Location
    New York
    Posts
    2,883
    Have you found a buyer yet or are you still selling? I may be interested.

  18. #18
    details here too please

  19. #19
    No, I have not sold it yet, it is still up for sale, but the only bid I have currently is $1200 and he wants to pay %50 now and %50 later. I do not know that guy and do not feel comfortable doing it that way. I have been ripped off too many times to fall for that. Not saying he will rip me off, but as I said, I dont know him at all!

  20. #20
    Join Date
    Jun 2005
    Location
    New York
    Posts
    2,883
    If you could send me some more information to Sean@XeHost.net with details on your client number, payment methods, monthly income, with screenshots, I may be interested.

  21. #21
    All the details are in the first post,,and in the 3rd or 4th post is a screem shot of all clients and there payments, including monthly income.

    Here is a screenshot of the monthly income report produced by my billing system
    http://directmusician.com/income.JPG

    99% of them pay with PayPal,,only 1 of them pays with 2Checkout.

  22. #22
    Join Date
    Jun 2005
    Location
    New York
    Posts
    2,883
    Where can I contact you to talk about this?

  23. #23
    Anyone of the instant messengers below

    Yahoo= helphousehosting
    MSN= helphousehosting@hotmail.com
    AOL= HHHSalesnSupport
    ICQ= 288524014
    Skype= helphousehosting

  24. #24
    Join Date
    Aug 2003
    Location
    wilbur ,washington
    Posts
    218
    hello, when i said 50% i meant i will pay you 50% upfront , then after we close the deal and i move them and getting billing info ill pay the remainder 50% ,

  25. #25
    Ahh ok,sorry, misunderstood. I have a bid of $1,400 now though.

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