Originally posted by RefreshNet I believe the typical payment is to buy a company for their yearly income, although I could be wrong about that
Usually around 10 to 12 months and depending on these factors usually:
- Type of Clients (cheap monthly plans with insane disk and bandwidth is less money)
- Type of Setup (Reseller or dedicated) - Dedicated cut into your gross
- How fast the seller wants to sell, now = less money
- How many customers already paid yearly or non monthly and terms left.
- Control panel they are using currently.
This is for small to mid size. I've bought a pretty good one for about $500.00 in the past from someone looking to unload though. Hard to come by though.
Before buying a company I advise, you should check the track record thoroughly of that company and it's loss and profit accounts and so on as to judge the credibility of that company.
Some time it happen that the formal owner creates another web hosting company, and might try to get their old customers back, suppose if your service is lower then might be possibility that old customers will move out with formal one.
Make sure you are actually buying a "company" (if that's what you're looking for) and not just a handful of customers on some guy's server. There is a HUGE difference and, with that low of a budget, you're probably looking at the latter.
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You're not going to find much of a "company" for $250. If you raise your budget into the $5000-10,000 range, you might be able to find a small business with a few customers. When I say small business, I mean a one man show with maybe a 50 or so small shared hosting customers.
If you're going to acquire another company, you need to take it seriously. If all you want is to acquire individual clients, you'll find offers on the advertising forums here every once in a while that may fit your budget. Those offers seem to usually be in the $500-5000 range for taking over client accounts.
Last edited by bqinternet; 06-21-2005 at 11:31 AM.
I once bought a host with a motivated seller, $500 for around 70 low paying clients and resold it a year later for 3k, its not impossible, just rare and the seller needs to be wanting to get out of the biz in speed. Just have to watch here and other forums and grab it fast.