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  1. #1
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213

    * Approx. 80 Reseller clients for sale

    I have been running Levi1.com for 3.5 years now and have very much enjoyed doing this webhosting biz. Right now though, I an thinking of investing in a different venture and as such am looking at the option of selling all my current clients (and the one who sign up in the next 2 weeks).

    I am selling only the clients, not the domain or any future clients who may sign up with Levi1 in the future. (If my other venture will not work out as expected I will get back into web hosting.)
    Of course, I will not solicit my sold clients to return to me, in fact, I will refuse to accept any of them as my clients for a period of 2 years.

    A few details on the clients:
    there are 42 Monthly clients and 38 Yearly clients. The gross yearly revenue is about $26,000 which is about the target price I am looking for. Of course, I cannot guarantee that all yearly clients will renew, but at least 90% will renew.

    Part of our strategy is to oversell by a large margin, but the actual usage is really minimal as you can see in the detailed excel table here: http://www.levi1.com/clients.xls
    Our largest users use 68GB and 31GB space respectively and the vast majority use under 1GB space. Total bandwidth is less than 3TB /m.

    We have 3 servers at LayeredTech.com which you can take over if you wish (they are Pentium 2.8 with 1GB ram and 160GB HDD for about $135 each.) or have the clients moved to your servers. We can do the client move for you.

    The sale is for ALL clients as a whole, no partial sale.

    Bidding will be open for 2 weeks and will end Tuesday, Oct. 31 at 12:00AM EST. (I reserve the right to end this auction early or to cancel it if I see fit).

    Bidding is starting at $5,000 and you can send your offers here or via email to [email protected].

    Reserve price is $15,000.

    BIN is $25,000.


    Once the auction is closed, the winning bidder will be required to pay 50% via Bank transfer within 48 hours, then we will give him the root access to our servers to transfer the files. This must be completed within 7 days. If necessary, I am willing to do the transfer myself, again to be completed within 7 days after initial payment. Once the transfer is complete, the remaining 50% payment will be required via bank transfer within 48 hours. We can also accept the payment via an escrow service with the buyer paying 50% of the cost.

    note: I will sign an agreement on the sale terms etc. including the clause of no contact or acceptance of these clients for a period of 2 years etc. . BUT, if the buyer fails to make FULL payment, I WILL contact all clients and explain the defrauding situation and will do my best to get them back and cut my losses.


    Happy bidding!
    Shneur
    Last edited by Veridian - Shneur; 10-16-2006 at 07:29 PM.

  2. #2
    please post a renewal calendar for the annuals

  3. #3
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213

  4. #4
    sorry - my bad

  5. #5
    Join Date
    Aug 2003
    Location
    wilbur ,washington
    Posts
    217

  6. #6
    just curious, as it appears a decent % of the client base is <4 months old, why sell with business picking up so much ?

  7. #7
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    webuyhosts,
    Many use their own DNS and some more use our anonymous DNS (ns1.localserver.us) so those are not a problem, as for the ones using ns1.levi1.com I guess we can take the time to have them change it over, even over a month or more, but in the end we want to keep Levi1.com. (maybe we can setup a DNS cluster at least for a while so they can continue using our NS).

    contractdata,
    the truth is that I am pretty hesitant about giving up the hosting business as I am pretty good at it now and I really like it etc. but I have decided to try out this new venture and I will not have time to work with the hosting business plus I need cash to invest in this new business. As I said, I may end up back in this industry in the future, time will tell...

  8. #8
    Join Date
    Jul 2002
    Location
    London, United Kingdom
    Posts
    4,362
    will your new venture involve you selling *reseller* accounts anytime in the next 24months - are you prepared to sign a Non-Compete to that effect ?

    are you adamant about keeping the "brand name" ?

    do these clients use you for domain registrations ?

    Our largest users use 68GB and 31GB
    one of your "unlimiteds" uses 113Gb, another 77Gb
    one of your 700's uses 125Gb
    one of your 2.5Tb's uses 170gb
    how can 20gb / 400gb have uploaded 73.4gb n the last 4 days and used 0.00gb transfer ?


    with the amount of overselling, the large resource users (and potential resource users), combined with you keeping the "name" thus killing any real growth prospects, subject to your answers on the above, we'd be prepared to offer you
    $6000
    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

  9. #9
    Join Date
    Apr 2003
    Location
    Brooklyn NY
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    213
    webuyhosts,
    I forgot to mention, about 50% pay via paypal and the other 50% pay via our Merchant account via Authorize.net gateway. Several pay also via Bank transfer and western union.

    othellotech,
    not at all, the new venture is not Hosting related at all, but I am not prepared to sign a non-compete to the effect of not selling hosting as I mentioned earlier, I do plan to sell reseller hosting if my new venture does not work out fine (or for whatever reason). I will sign a clear non-compete on these 80 clients that I will not compete for THEM or accept them if they contact me. Again, I am selling the CLIENTS, not the business.

    I'm pretty adament about the kepping levi1.com, although if this is the last issue I may become flexible on it.

    The clients do not use us for domain registration, though I did register maybe 4 or 5 domains for a few of my clients.

    the quotas you mentioned are Bandwidth I only referred to space in the quote "Our largest users use 68GB and 31GB".
    the last user you noted that uses 73.4gb space is an error, I have now fixed it.

    why would keeping the name be "killing any real growth prospects"? they will be transferred to your company and you would continue growing under your own brand...


    and thanx for the bid
    Shneur

  10. #10
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    it's 4:00 AM here (in Israel ATM) so I'm off for now, please post your questions but I'll answer them some time tomorrow.

  11. #11
    Join Date
    Jul 2002
    Location
    London, United Kingdom
    Posts
    4,362
    Thank you for the additional details and comments ...
    Quote Originally Posted by Levi1
    The clients do not use us for domain registration, though I did register maybe 4 or 5 domains for a few of my clients.
    Noted.

    the quotas you mentioned are Bandwidth I only referred to space in the quote "Our largest users use 68GB and 31GB".
    the last user you noted that uses 73.4gb space is an error, I have now fixed it.
    Thank you for the clarification

    Quote Originally Posted by Levi1
    I'm pretty adament about the kepping levi1.com, although if this is the last issue I may become flexible on it.
    From my point of view, the domain would be iomportant if tied to nameservers, to a support system and a provisioning/order methodology. It woudlnt be something we'd want long-term, preferring to incorporate the clients into our existing systems for everything, but it does make the handover and client transition easier.

    The "brand" name is really only relevant as the existing customers know it, and the recent growth *likely* to be related to the name becoming known on a wider scale, word-of-mouth, finally getting in search engines etc. Hence my *opinion* not being able to "rely" on the recent growth spurt continuing under a renamed brand ...

    why would keeping the name be "killing any real growth prospects"? they will be transferred to your company and you would continue growing under your own brand...
    if pepsi changed its name to aadrvaks, they'd expect to lose a %age of the consumer base, if 6 weeks later a new soft-drink started and was called pepsi, they'd expect their consumer-base to be further eroded and confused.

    it's not a deal-breaker, but if we progress, something we can discuss at length privately

    not at all, the new venture is not Hosting related at all, but I am not prepared to sign a non-compete to the effect of not selling hosting as I mentioned earlier, I do plan to sell reseller hosting if my new venture does not work out fine (or for whatever reason). I will sign a clear non-compete on these 80 clients that I will not compete for THEM or accept them if they contact me. Again, I am selling the CLIENTS, not the business.
    Understood, and I'm sure you understand any potential purchasers reluctance to buy a clientbase, and effectively be funding you starting a new "competitor" under the original company name, selling the same product

    Would you be prepared to sign a 90 day non-compete to not start another *reseller* hosting business within 3 months, and only within an additional 3 months after discussion with the purchaser of the levi1 clientbase ?

    I'm not looking to stop you working within this or any industry, and fully appreciate your integrity and honour in not taking business from the current customers and so on, these are question i have to ask, even if the answers are no.

    Enjoy your sleep.
    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

  12. #12
    are you selling the domain seperate?

  13. #13
    ill buy a few off you mate,

  14. #14
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    othellotech,
    Concerning the name Levi1.com as you said, it is still to be discussed.
    I would be ready to sign a 90 day non-compete to not sell any hosting, in addition, after those 90 days, (if I were to get back in the hosting business), I am willing to go another 6 months under a new name, and only later revive Levi1.com.
    Also, the analogy to pepsi is not exactly accurate because here you just need to win over a client once and then he stays for life regardless of the "name" or company, employees etc. (providing the service is good), whereas at pepsi they need to win over their client base at every can they sell...

    Mike006,
    initially we ar enot selling then name Levi1.com at all, but as mentioned before, if this will be the deal breaker we may reconsider.

    Greenlush,
    We are only selling all clients as a whole, no partial sale.

  15. #15
    im not interested in the clients, I just want the domain.

  16. #16
    Levi1 i've been trying to contact you on YIM/AIM but you dont appear online.

  17. #17
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    xemplarnet,
    I'm online now you can contact me via AIM: support770 (I don't use YIM).

  18. #18
    Based on your information we'll offer $15,000k which is valid for 7 days only.

  19. #19
    Join Date
    Aug 2003
    Location
    wilbur ,washington
    Posts
    217

  20. #20
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    webuyhosts,
    as informed via email, we cannot do a payment plan over multiple months.

  21. #21
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213

    Arrow Update

    UPDATE:

    In the past few days we have added several additional clients and the current total is 89 clients with a monthly value of $1325 /m and a yearly value of $27,737 - an addition of $1707(!), since we have a advertising campaign running right now (which we actually purchased about 4 months ago) we expect to add a value of at least an additional $2000 yearly income by the end of this week. Please bear this in mind when bidding...

    In addition, I am prepared to leave Levi1.com active to receive new signups (from the past advertising we made) on the buyer's server for a period of 3 months, of course the clients will be the buyer's. Also, I am prepared to put a weekly advertisment post here on WHT for a period of 3 months which can generate 2 - 5 new accounts evey week. This can greatly increase the value of this sale!

    These 2 options though will be available for the buyer only if the final sale price is $22,000+

    REMINDER: the auction ends in 7 days and 4 hours and 32 minutes...

  22. #22
    Join Date
    Sep 2005
    Location
    Portugal
    Posts
    176
    hi, i am one of the customers. I payed for having a 180 gb account but the server just has 20 gb free. In case there is a new buyer i may make a new try to use it but the uptime has been very bad.
    I do not intend to renew and I was trying to sell my account with no sucess.

    It is the second time at least that Levi is selling his customers.

  23. #23
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    pjssms,
    If you are not interested in buying our clients then I'm not sure why you are posting here... any issue you have you can open a ticket on our helpdesk www.levi1.com/helpdesk

  24. #24
    Hi,

    So what happens if three of your 180GB clients decides to dump 180GB of data on all three of your 160GB drives?

    Regards,
    Suhail.
    OSHS Ltd
    OSHS Services - DNS Clusters | R1Soft Licenses | Remote Backup Storage | R1Soft CDP Storage | Cheap Dedicated Servers
    EconDC.com - Enterprise UK Server Colo & Rack Space at Lowest Prices

  25. #25
    too funny but good point

  26. #26
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    suhailc,

    If many users will want to use the maximum amount of space the purchased we would add more hard drives and servers as they get filled. But as you can see in the clients detail link, 90% of users actually use less than 1% of the space they purchased which is why this strategy has worked great for us for several years now.

    But this issue is sales related when acquiring new clients which is not the issue at hand of selling the current clients (with their actual MINIMAL usage). Of course, the buyer will be able to adjust the plans and prices as he wishes while keeping the interest of the clients in staying with him.

  27. #27
    So hang on, are you saying that clients will accept being put onto more realistic plans for the same price they are paying you?

    Do they know they are being sold?
    OSHS Ltd
    OSHS Services - DNS Clusters | R1Soft Licenses | Remote Backup Storage | R1Soft CDP Storage | Cheap Dedicated Servers
    EconDC.com - Enterprise UK Server Colo & Rack Space at Lowest Prices

  28. #28
    Join Date
    Sep 2005
    Location
    Portugal
    Posts
    176
    The clients don't know that they are being sold unless they are reading this thread.

    I have 2 dedicated servers at the moment. With the level of support and the time it takes to solve some problems no one is going to use all the space they have payed for. I have tried with about 20 gb but them is not worthing to receive complains from my customers.

    I can make an offer but it will not go to the levels you are presenting. What i can see from your figures is that you take 3 or 4 times your cost but your clientes are using less than 10% of what they have bought.

    Is a support related issue as well that by not providing enough confidence no one will take the time to upload massive amounts of storage. My strategy is more on giving a good support.

    But if you can sell for what you are asking it is a good strategy.

    I would have accepted at the time to have a 50 gb account instead of the 180 gb if it works as it should. I would like to see more opinions of other customers before make an offer to you.

    I would have prefered to have had my money back instead of the extra 6 months free.
    I think that now you will understand it better and will feel that having happy customers is important.

    At least on building up your 3rd hosting business you will take that into account.
    Last edited by pjssms; 10-25-2006 at 08:45 PM.

  29. #29
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    suhailc,
    I have not notified the clients of the move yet as it is not final and I may end up keeping the clients. Of course, the buyer will need to offer them at least initially the same plans to avoid cancellations.

    pjssms,
    All you are saying is valid for creating a succesful business and having a good client relationship etc. but, as mentioned before, this is completely off topic and the issue here is the auction of SELLING the current 89 active clients to an interested buyer (and actually CLOSING the hosting business). If you have anything to contribute to this topic you are more than welcome to comment.
    Of course, I would hope that the buyer would give excellent customer service and as such keep all the clients from cancelling and add to the repuation of his company.

  30. #30
    this incredibly annoys me, i am deadset on buying your

    80gb space and 1200 gig bandwidth plan! It's unbeatable (ill proably use it all )

    I just home if somone buys it they will retain all the orginal plans

    EDIT: Did i just read that that dude has 20gig left? What's the point of buying a hosting company that has bit off more then they can chew.................... If a buyer buys this company goodluck! and if the plans stay the same i am a gaurunteed customer, this post as shaken me up a bit with the"downtime" thing
    Last edited by Nofan0; 10-29-2006 at 03:34 AM.

  31. #31
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    Nofan0,

    We add hard drives and servers as they get filled, so when you purchase an 80GB plan you may be on a server which is 70% full with only 30 - 50Gb space left, but that does not prevent you from eventually using the full 80GB space you have purchased.

    Currently, as stated in the first post, I'm not sure yet we will end up selling the clients, we may decide to keep them. The decision will be made at the end of this auction. Obviously, the buyer who would want to keep you as a client will need to offer you the same plan so it would make great sense to lock in this exceptional plan before the client sale goes through.

    Sincerely
    Shneur

  32. #32
    Join Date
    Sep 2005
    Location
    Portugal
    Posts
    176
    Nofan0,

    I will gladly sell you my 180 gb/1800 gb plan. It costs around 35 usd per month and is payed until May.

    Thank you,

  33. #33
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213

    Exclamation Update

    Reminder: Auction is closing in 36 hours, current high bid is $15,000


    Shneur

  34. #34
    Oh well thanks, i feel incredibly reinforced! i can't wait to start my own little hosting company

    Come November/December there will be another customer so i guess you can up the value of the company!

    I really hope you don't sell the compan its AWESOME!

  35. #35
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213

    Exclamation Update

    Auction closing in 7 hours.

    Currently the number of clients has increased to 93 and the total yearly revenue has increased to $28,898, current high bid is about half (!) at $15,000

  36. #36
    Join Date
    Apr 2003
    Location
    Brooklyn NY
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    213
    make that 94 Clients with yearly revenue of $29,377

  37. #37
    these 2 new clients - are they annuals you have already collected for

  38. #38
    Join Date
    Apr 2003
    Location
    Brooklyn NY
    Posts
    213
    no, the 7 newest clients are all monthly.

  39. #39
    Join Date
    Apr 2003
    Location
    Brooklyn NY
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    Auction is closed.

    I will update with sale if / how it was completed.

  40. #40

    * Levi1 no good

    Levi1 is a dissapointement.
    I have purchased a years reseller account by him (7 months ago) and I had to quit using it from the fifth day. Only problems all the time! He was never around to fix anything and when I asked for a refund he stoped replying to any email / post I did.
    If all the customers he states are like me then don't expect any renewals from them as they are dissapointed! From his case i learned to first search the forums before buying a hosting plan

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