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  1. #1
    Join Date
    Jul 2006
    Posts
    190

    Looking for Merging with an Established Hosting Company...what to do?

    Well ive been hosting for 1 whole year everything is going get, last month i lost some major customers so i removed any restriction on proxy sites now i have 4-8 more customers and i can make the monthly payments for the server.

    Keep in mind im not making a profit as im new and just want my business to survive so im not looking for profits.

    Now the customers i have now the two servers i have is not handling it, and bigger servers are costing...ALOT, so im looking intoa merger or some kind of partner ship with an established company for a minimum of 6 months period.

    The funds are a major problem at the moment and i want to expand as well, im trying my best to get more customers but its been hard these months to mantain everything.

    Any help??

    Thanks in advance

  2. #2
    Join Date
    Mar 2005
    Location
    chicago, illinois
    Posts
    48
    now i dont know when u say u want to merge what exactly do u mean , once ur clients gets a new dns they are going to forget u , and they are going to pay the new hosting team instead of you , now by merging w/ another hosting company if u mean that u sell them customers and they give u money then i dont know if it is ethically right or wrong but i am sure others have an opinion about it
    Winning is not my obsession it is my habit

  3. #3
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    If you're not able to turn a profit with your current business model, what makes you think that any company would want to take you on? Not trying to be rude, just asking what you are bringing to the table.

    What does your business plan say, as far as how long it will be until you turn a profit?

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  4. #4
    Join Date
    Jul 2006
    Posts
    190
    Well all i need is 3 months time without any interruptions and a good server to make at least 40-50$ profits from my current status.

    plus it took me only 3 months to make my hosting site pr2.
    i know what im doing but i cant do it wihtout proper fundings.
    Last edited by CX.Eric; 09-08-2006 at 07:02 AM.

  5. #5
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    What you're asking is for someone to take you on at a loss for 3 months. What you need is a loan, or an extension of credit with your current vendor, not a partnership.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  6. #6
    Join Date
    Jul 2006
    Posts
    190
    hmm can you explain that please?

  7. #7
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Quote Originally Posted by Dluzion
    hmm can you explain that please?

    You're asking someone to partnership with you, yet you have nothing right now of real value to offer except a history of debt and poor planning (you said yourself that you have 2 overloaded servers and aren't charging enough to pay for bigger servers).

    If your business plan calls for making a profit in 3 months, why in the world would you want to give away partial control of your business? This, again, seems like a bad business decision on the surface. What you need is a short-term loan to carry you through until you make a profit - or you need your server provider to give you a 3 month extension of credit (probably won't happen unless you have a solid business plan).

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  8. #8
    Join Date
    Jul 2006
    Posts
    190
    Thanks Tina ill try to get a loan to carry me for a few months, hopefully ill get one.

  9. #9
    Join Date
    Jun 2001
    Location
    Denver, CO
    Posts
    3,301
    In 3 months you'll have a profit of $40??? No offense, but why bother?
    Jay Sudowski // Handy Networks LLC // Co-Founder & CTO
    AS30475 - Level(3), HE, Telia, XO and Cogent. Noction optimized network.
    Offering Dedicated Server and Colocation Hosting from our SSAE 16 SOC 2, Type 2 Certified Data Center.
    Current specials here. Check them out.

  10. #10
    Join Date
    Apr 2002
    Location
    USA
    Posts
    5,779
    Quote Originally Posted by Jay Suds
    In 3 months you'll have a profit of $40??? No offense, but why bother?
    Hey it will buy a pizza and a coke.

  11. #11
    Join Date
    Sep 2006
    Posts
    44
    Get a job maybe.... and you will be able to pay for the servers and make profits at same time!

    <<Signature to be setup in your profile>>
    Last edited by anon-e-mouse; 09-08-2006 at 07:58 PM.

  12. #12
    Join Date
    Jan 2005
    Location
    Richmond, VA
    Posts
    3,102
    Quote Originally Posted by Dluzion
    Well ive been hosting for 1 whole year everything is going get, last month i lost some major customers so i removed any restriction on proxy sites now i have 4-8 more customers and i can make the monthly payments for the server.

    Keep in mind im not making a profit as im new and just want my business to survive so im not looking for profits.

    Now the customers i have now the two servers i have is not handling it, and bigger servers are costing...ALOT, so im looking intoa merger or some kind of partner ship with an established company for a minimum of 6 months period.

    The funds are a major problem at the moment and i want to expand as well, im trying my best to get more customers but its been hard these months to mantain everything.

    Any help??

    Thanks in advance
    It sounds to me as if the problem is in your business model, and no amount of M&A activity can fix that.

    Your current customers are not turning a profit for you, and you recognize this fact. Why not charge more for your services. Proxy sites use alot of resources, so a higher price is not an extreme measure.

    It does not sound like your company is very large, so you will have a very hard time finding a merger partner - especially if it's only for six months (at which point it's not really a merger anyway).

    My advice is to perfect your business model, and stick it out alone. I would be extremely shocked if you could find a company that wished to merge, or even forge a partnership, with your company.
    Daniel B., CEO - Bezoka.com and Ungigs.com
    Hosting Solutions Optimized for: WordPress Joomla OpenCart Moodle
    Data Centers in: Chicago (US), London (UK), Sydney (AU), Sofia (BG), Pori (FI)
    Email Daniel directly: ceo [at] bezoka.com

  13. #13
    Join Date
    Jul 2006
    Posts
    190
    umm thanks but i already solved my problem i just had to do the right advertising and do some sorting around the accounts to better equip them on the right server the load is not under control and im making well over my margin

  14. #14
    Join Date
    Jan 2005
    Location
    Richmond, VA
    Posts
    3,102
    That's good to hear! See, a merger would've been pointless!

    Good luck with your company!
    Daniel B., CEO - Bezoka.com and Ungigs.com
    Hosting Solutions Optimized for: WordPress Joomla OpenCart Moodle
    Data Centers in: Chicago (US), London (UK), Sydney (AU), Sofia (BG), Pori (FI)
    Email Daniel directly: ceo [at] bezoka.com

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