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  1. #1

    Selling Web hosting business

    I can no longer run this business as i no longer am able to coment the time needed. Its currently being offered on ebay -> Click here


    You are buying roughly 80 customers, leasing 3 servers, the domain name, website and all scripts on site. This is a live running business, not a scam!

    This auction is for the customers, (leased) servers from server matrix, the website, domain name and the domain customers (enom) . The website is not a template. The website has a lot of custom stuff fully intergrated with forums, support, server status,etc.. and is currently a PR4. It is in all the main search engines and gets a fair amount of traffic with very little promotion i have done. The domain is located on another server (not on these 3) and would need to be transfered over after purchase.

    There are a total of 3 leased servers (renews monthly, next due in Aug.) that would be transfered. Server matrix charges $75 to transfer ownership of their servers. These were purchased at special deals (+one time upgrade fees) to get them at the discounted prices. You can no longer get them at these low prices. Howver if you do not want these servers, they can be cancelled at the end of this month (allow 10 days or it will be billed for the next month)

    The hosting site uses awbs (paid lifetime licence @ $169) software and im using a enom ($8.95 account) for domain registrations. awbs is loaded with automation features that setups accounts, bills customers, register domains with several ICANN organizations and handles many payment processors too.

    Server specs:

    ( 2 ) - 2.4GHz Celeron
    80gb main drive
    40gb backup drive
    1024MB memory
    cpanel/fantastico
    Lease at $79 for one and $99 the other monthly

    (1 server is empty, the other has approx.77 accounts on it)

    Accounts on this server break down to this:

    (64 accounts total) $3.00 monthly
    8 monthly accounts (small plan 250mb storage/10gb bandwidth)
    4 BiAnnually accounts (small plan 250mb storage/10gb bandwidth)
    2 quarterly (small plan 250mb storage/10gb bandwidth)
    50 yearly accounts (small plan 250mb storage/10gb bandwidth)

    (3 accounts total) $7.00 monthly
    1 monthly account (med plan 500mb storage/20gb bandwidth)
    1 quarterly account (med plan 500mb storage/20gb bandwidth)
    1 yearly account (med plan 500mb storage/20gb bandwidth)

    (5 accounts total) $10 monthly
    1 monthly account (large plan 1gb storage/50gb bandwidth)
    4 yearly account (large plan 1gb storage/50gb bandwidth)

    (3 accounts total) $15 monthly
    3 resellers account 1gb storage/50gb bandwidth


    The other server:
    Dual 2.4GHz Xeons
    80gb main drive
    40gb backup drive
    1024MB memory
    cpanel/fantastico
    Lease at $189 monthly

    Accounts on this server break down to this:

    (4 accounts total) $25 monthly
    1 monthly account (med plan 2gb storage/150gb bandwidth)
    1 BiAnnually account (med plan 2gb storage/150gb bandwidth)
    2 yearly account (med plan 2gb storage/150gb bandwidth)


    There are also approx.118 customers paying $9 for domain names and are a few id protects at $10 each. Again i will help with the transfer of accounts if you do not want the servers.

    Some questions that i have been asked that others may want to know:

    How long is the domain good for?
    It expires May-2009

    How long will you help with the transfer?
    To the end of the month, longer if needed though

    Are the servers setup and ready to use?
    Yes, there in use now. All of them have firewalls, antivirus, custom spam measures, secured php,etc..and updated software.

    What operating system are they running?
    All are running redhat enterprise 3

    What support system is in place?
    There is a built in ticket system that can be setup for mutiple users, forum,knowledge base and flash tutorials that answer most questions.

    Do you have dedicated servers for sale too?
    No, but the system is setup for it if you wanted to sell them.

    Bonus stuff: There is a template script setup on site that allows you to make 20% Commission from template monster. This is intergrated into the site as well.
    There are banners i had made, flash tutorails and other custom stuff included. Questions can be directed to xwing777[at] gmail.com

  2. #2
    Join Date
    Jul 2002
    Location
    London, United Kingdom
    Posts
    4,362
    how do the existing customers pay (check, paypal, c.card)
    how many ip's in use ?
    any ssl certificates sold ?
    what is the ticket system used ?
    can you PM me the url of the site please

    Ta
    Rob Golding Astutium Ltd - UK based ICANN Accredited Domain Registrar - proud to accept BitCoins
    Buying Web Hosts and Domain Registrars Today @ hostacquisitions.co.uk
    UK Web Hosting | UK VPS | UK Dedicated Servers | ADSL/FTTC | Backup/DR | Cloud
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  3. #3
    I think his domain is http://digitalbreak.com I just saw it on his ebay page

  4. #4
    how do the existing customers pay (check, paypal, c.card)?
    CreditCard-71, PayPal-116

    The billing system supports many other options though (http://www.awbs.com/awbshm.php )

    how many ip's in use ?
    Only 2 for the customers, 1 for the site and 2 per server used for nameservers. There are 3 free IPs on 2 servers, and 1 on the other.

    any ssl certificates sold ? No, other than the one used for the hosting site.

    what is the ticket system used ? The one built in to AWBS (http://www.awbs.com/awbsh.php )

    can you PM me the url of the site please? Malboro was correct http://digitalbreak.com
    Last edited by jdmath; 07-07-2005 at 03:16 PM.

  5. #5
    Have you got a buy-out figure?

  6. #6
    No, im going to let the auction run the course.

  7. #7
    Join Date
    Sep 2000
    Location
    Alberta, Canada
    Posts
    3,109
    CreditCard-71, PayPal-116

    Would these mean there are approx. 187 Clients accounts being sold?

    Are any of these accounts using; porno, nude images, or IRC services?
    Any accounts with SSH access?
    PotentProducts.com - for all your Hosting needs
    Helping people Host, Create and Maintain their Web Site
    ServerAdmin Services also available

  8. #8
    No, there is roughly 80 hosting customers. A lot of the others are for domain registrations. Most that host purchase domains through me as well. All customers do not have any type of SSH access, IRC and or porn.

    BTW. The billing system i use offers a free enom account at a lower reseller rate than i use for free. I already had the $8.95 account so i didnt use it. I also used directi for a while but i didn't like their slow interface even though i got domains at $6.75. The billing system does support them too.

  9. #9
    Does the billing system have the cc information stored in it, so we could transfer the info over to our existing system?

    What is the actual monthly storage and bandwidth usage on these servers?

  10. #10
    Does the billing system have the cc information stored in it, so we could transfer the info over to our existing system?
    It does have that capibilty but im only using 2checkout for credit cards, some use paypal too.
    What is the actual monthly storage and bandwidth usage on these servers? [/B]
    As of today, the dual 2.8 has used 29.7GB of the alloted 1200GB. The 2.4 has used 6.6GB of the alloted 1200GB. The other 2.4 is empty so it hasnt used anything of the alloted 1000GB. For space used the 2.8 is using 7.6gb and 60gb available. The 2.4 is using 9.1gb and has 58gb available. The other 2.4 is empty so roughly 71gb free on it.

    All 3 have 40gb backup drives that work out good for the 80gb drive with cpanels (compressed) backups

  11. #11
    how long has the site been in operation

  12. #12
    approx. 3 years total

  13. #13
    Join Date
    Sep 2000
    Location
    Alberta, Canada
    Posts
    3,109
    jdmath, still waiting to hear back from you on the PM I sent you a few days ago.
    PotentProducts.com - for all your Hosting needs
    Helping people Host, Create and Maintain their Web Site
    ServerAdmin Services also available

  14. #14
    Join Date
    Jun 2005
    Location
    Indianapolis
    Posts
    77
    I have done the math and came out with around $4700 annually witch another user on ebay got something around that number to but it doesnt match how you say you get $5,620 annually could you explain that to me i have an excel file i set up to calculate it if you would like to see it

  15. #15
    Server #1

    64 accounts @ $3 monthly X 12= $2304
    3 accounts @ $7 monthly X 12= $252
    5 accounts @ $10 monthly X 12= $600
    3 accounts @ $15 monthly X 12= $540
    ____________________________________
    Total of server #1= $3696


    Server #2
    4 accounts @ $25 monthly X 12= $1200
    ____________________________________
    Total of server #2= $1200


    ++++++++++++++++++++++++++++++++++++
    Total of both servers #2= $4896
    ++++++++++++++++++++++++++++++++++++


    Domain registrations yearly

    118 X $9= $1062

    ____________________________________
    (add totals of server + total domains)

    Total Gross Income= $5958


    *Note* This does not take into account of pre-paid yearly discount which is 2 months free. That is why the total gross income is $5620 gross. All of this is on the acution itself by the way

  16. #16
    Checking it now.

    Originally posted by Website Rob
    jdmath, still waiting to hear back from you on the PM I sent you a few days ago.

  17. #17
    Join Date
    Aug 2002
    Posts
    40
    Originally posted by jdmath
    It does have that capibilty but im only using 2checkout for credit cards, some use paypal too.
    Hi,

    Do you have the credit card info on file or will we need to collect it from the users again?

    -Gint

  18. #18
    No, i do not have any credit card information. 2checkout handles all of this as well as paypal.

  19. #19
    Not to trash the thread but rather to put things in perspective as 1 of the 1st high bidders to hit the X,XXX mark whos still wishes to make a winning offer on it for my next bid

    Please explain why you would even mention the domains

    118 X $9= $1062
    in the revenue valuation when they are costing you $8.95 and you're charging $9.00 at best they should not figure into the sales prices

  20. #20
    Because it is the gross amount of all income. Someone that has a cheaper domain plan can make money off this like directi @ $6.75 each or the enom $6.95 rate. I used domains just to draw/go with hosting customers not really intending to make a profit with them anyway. Of course whoever gets this can adjust prices to their terms.

    Im not trying to hide anything as the auction ad shows. I will answer any questions and try my best to explain anything anyone wants to know.

  21. #21
    Join Date
    Jul 2002
    Location
    London, United Kingdom
    Posts
    4,362
    Please explain why you would even mention the domains
    in the revenue valuation when they are costing you $8.95 and you're charging $9.00 at best they should not figure into the sales prices
    actually its a loss, as to credit the 8.95 enom account you effectively "lose" 3% straight off with the funding cost, so the domain side of the business costs 1088, with 1062 income.

    hosting income (est) 4896, with an expense of 4404

    so on a pure "annual profit view" basis, it's worth appx 466$ - and once you remove the paypal and 2c0 fees from that it's probably actually losing money each month.

    as one of the bidders on the auction @ ebay, our view is what the growth of 79 clients is worth to us
    Rob Golding Astutium Ltd - UK based ICANN Accredited Domain Registrar - proud to accept BitCoins
    Buying Web Hosts and Domain Registrars Today @ hostacquisitions.co.uk
    UK Web Hosting | UK VPS | UK Dedicated Servers | ADSL/FTTC | Backup/DR | Cloud
    UK Colocation | Reseller Accounts | IPv6 Transit | Secondary MX | DNS | WHMCS Modules

  22. #22
    Someone who is better with the hosting business can make a lot more off of this than i did im sure. I did not have the time to devote myself fully to this, and now i have even less time than before to this. I had planned growing much more faster than i did to get a better bottom end like a cheaper domain rate and more customer-per-server.

    A lot of questions regarding moving, changing plans, changing rates, etc... with the current clients. Im sure they would be a few who left but basically most of the customers are long term in that they have been with me 1yr+. Also most are using 1/3 or less of the plan specs so adjustments to that probably would be ok for the new owner to do.

    I laid everything out on the auction being 100% honest. I haven hidden anything. I don't think i have seen anyone show as much detail of their business that was/is for sale nor as openly as i have. I have done the same with any questions regarding this and will continue to do so.

  23. #23
    Join Date
    Dec 2002
    Location
    San Antonio, TX
    Posts
    72
    One question that hasn't come up yet is whether you are willing to transfer ownership of the PayPal and 2CheckOut accounts. That makes initial billing much easier on the buyer until they can transfer the customers over to whatever payment methods they accept.

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