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  1. #1

    [FOR SALE] - High-Traffic Hosting Company ($48,400 Rev, $32,100 Profit)/year

    Before we get started, just a few notes of interest. I have made the decision to sell the company, but I am also committed to waiting as long as necessary to find a find a suitable buyer. If you would like more information, send an email to: [email protected]. I will then send you an NDA to sign and will provide you full information about the company after receiving the NDA. (The NDA is simply to protect our client base).

    Please direct all questions to: [email protected]. Thanks.

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    Company Profile

    We began hosting clients in December 2003. Publicly launched as a company February 1, 2004. Client base is primarily Flash and new-media sites. Many clients are business clients whose websites were designed by Flash designers and funneled to us. Have experienced stable growth since launch and maintained a high retention rate. Website receives very high traffic, which is indicative of the company’s established reputation and international exposure.

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    Site Traffic

    * All stats are from the month of October, 2005 and generated by Urchin Stats

    Hits / month = 444,665
    A 'Hit' is simply a successful request to your web server from a visitor's browser for any type of file.

    Pageviews / month= 269,965
    A 'Pageview' is defined as a request from a visitor's browser for a displayable web page, generally an HTML file. Urchin's configuration controls which file extensions are treated as Pageviews.

    Sessions / month = 11,527
    A 'Session' is defined as a series of clicks on your site by an individual visitor during a specific period of time. A Session is initiated when the visitor arrives at your site, and it ends when the browser is closed or there is a period of inactivity.

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    Accounts Hosted

    Active, Paying Accounts = 340

    Terms of Payment
    72 - Monthly
    28 - 3 Months
    43 - Semiannually
    141 - Annually
    56 - 2 Years

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    Client Demographics

    We are an international company with clients in 24 countries.

    Over 75% of clients located in the United States

    Other clients are located in:

    Australia
    Belgium
    Brazil
    Bahamas
    Canada
    Denmark
    Spain
    France
    Ireland
    India
    Japan
    Mexico
    Netherlands
    Norway
    Netherlands
    Norway
    New Zealand
    Panama
    Portugal
    Sweden
    Singapore
    South Africa
    Spain
    Turkey
    Taiwan
    UK
    Virgin Islands

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    Company Finances

    Revenue Produced (Average Monthly)
    $1074.40 - Monthly
    $658.65 - 3 Months
    $502.85 - Semiannually
    $1,325.95 - Annually
    $474.20 - 2 Years

    Total Rev: $4,036.05

    Estimated Annual Revenue: $48,432.60

    Monthly Expenses
    $968.59 - Server Expenses
    $316.62 - Maintenance / Tech Support
    $24.95 - Billing Panel License
    $50.00 - Affiliate Payouts

    Total Exp: $1,360.16

    Annual Expenses: $16,321.92

    The company is currently operating with a high profit margin. No marketing efforts have been made outside of our affiliate system and word of mouth recommendations from satisfied customers.

    Growth opportunities exist in many markets, as evidenced by our international client base.

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    Potential Buyer Profile

    The only criteria that we require is that the buyer will provide our clients a good service. The buyer could purchase the company to increase the client base and revenue stream of an existing company or to be an owner / operator of the company in its current form.

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    Asking Price

    We are looking for the best offer from someone who can provide our clients a good service. We have the company listed with several business listing sites and will accept the best offer by a buyer who can meet our requirements for client support. As a ballpark index for offers, we are looking for offers in the ‘8-14 x Monthly Revenue’ range. We have already received one offer between 8-9 x Monthly Revenue. However, we will take all offers into consideration. We may consider lower offers if the buyer is a perfect fit. Please make an offer if you are interested.

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    Reason for Sale

    I am simply burned-out. As you probably know if you have had much exposure to the hosting industry, running your own business and adequately supporting your clients can take its toll on a person’s personal life. Owning your own business definitely has some great advantages, but it is a lot of work. I have also just received a great job offer that has made it much easier for me to decide to walk away

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    Servers

    3 Servers are all hosted by EV1 in Houston, TX (www.ev1servers.net). They are leased from EV1 and not owned by the company.
    24/7/365 technical support and management is provided by an established 3rd party server management company. I correspond with this company via trouble ticket, phone, or AIM support. Detailed info on this company will be provided in the packet sent with the signed NDA.

    All of these expenses are included in the figures above.

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    Support Provided

    I serve as the first line of support and handle all billing and basic support issues. For more complicated issues that are reported, I forward those issues on to the 3rd party company and they handle them. At that point, I simply act as the go-between between the customer and 3rd party company.

    Simple support / billing: Customer > Me
    Complex support issues: Customer > Me > 3rd party company

    Support is provided by phone (call-backs), forms on website, email, and live chat. (Live chat system is incorporated into website. System is not always enabled.)

    Typical daily support inquiries:

    Calls: 2-4
    Emails (including forms): 6-8

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    Sponsored Accounts

    We have several sponsored accounts that we been providing for free (in exchange for logo placement, etc). However, we are under absolutely no obligation to continue providing these accounts. The buyer can cancel these if he chooses.

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    Conditions of Sale

    1. This sale will transfer all company assets to the buyer.

    2. I will work closely with the buyer to assist in the transition process for 30 days after the purchase. Then, I will be readily available to answer any questions in a consultant role for 60 more days.

    3. I reserve the right to refuse the sale if it appears that the buyer will not be able to adequately support to our clients.

    4. Some paperwork will need to be filled out by the buyer to assume all of the company’s accounts (EV1 change of account, transfer of LLC membership to assume all intellectual property, etc)

    5. I will agree to sign any non-competition clause for the hosting industry if the buyer chooses.

    6. Method of payment will be mutually agreed upon by the buyer and seller.

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    For additional information, please email [email protected]. I will then forward you an NDA and upon receiving it back I’ll send you a complete info packet about the company and field any questions that you have.

    I will respond to all inquiries. If you have contacted me, I assure you that I will respond as soon as I can.

    Thanks… I look forward to answering any questions you have.

    [email protected]

  2. #2
    Join Date
    Aug 2003
    Location
    wilbur ,washington
    Posts
    217

    hi

    we would be intersted in your 1 cpanel server, whats the revenue on that?

  3. #3
    Hi,

    I'm not breaking up the clients during the sale. Thanks for your interest.

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    Thanks to all of you who have contacted me about the company. One thing that I forgot on my original post was the server / control panel information. Here it is:

    There are 3 servers used. 2 are Ensim and 1 is cPanel.

    The current server configuration is:

    Server 1: Dual Xeon - 2.0Ghz – Redhat Enterprise - Ensim Unlimited - (2)73GBHD - 1GBRAM

    Server 2: Dual Xeon - 2.4Ghz - Redhat Enterprise - Ensim Unlimited – (2)73GBHD - 2GB RAM

    Server 3: Dual Xeon - 2.4Ghz - Redhat Enterprise - cPanel – (2)73GBHD - 2GB RAM

    Resources used:

    Server 1: 45.6 GB
    Server 2: 46.7 GB
    Server 3: 24 GB

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    This sale is still in negotiations. Please contact me at: [email protected] to receive more information about the company.

    Thanks.

  4. #4
    Join Date
    Jun 2005
    Location
    Indianapolis
    Posts
    77
    How much are you looking for
    RackSurge - Superior Hosting Solutions
    Shared, Reseller cPanel Web Hosting w/ Fantastico, Dedicated, VPS Solutions, Ruby on Rails, PHP4 and 5, Tomcat.
    Premium Network - Level(3), Savvis, AT&T, PCCW Global, nLayer, and TeliaSonera

  5. #5
    I am pretty sure this explains how much he is looking for.

    Asking Price

    We are looking for the best offer from someone who can provide our clients a good service. We have the company listed with several business listing sites and will accept the best offer by a buyer who can meet our requirements for client support. As a ballpark index for offers, we are looking for offers in the ‘8-14 x Monthly Revenue’ range. We have already received one offer between 8-9 x Monthly Revenue. However, we will take all offers into consideration. We may consider lower offers if the buyer is a perfect fit. Please make an offer if you are interested.
    I provide colo

    EMail me for details.

  6. #6
    Hostingjunkie-

    I have responded to you. Please send me your email address if you want me to send you an NDA. Thanks.

  7. #7
    How much total bandwidth is used per month?

  8. #8
    Bandwidth for all 3 servers totals around 1,100 GB per month.

    Our monthly quota from the datacenter is 2,000 GB per month for each server (6,000 GB per month total).

    If you are interested in the company, please follow up very soon. I have narrowed the field down to 3 serious buyers from an initial field of over 20. The deal will be closing soon, so please follow up quickly if you are interested. Thanks.

    [email protected]

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