Established Host For Sale - $13.5K Monthly Revenues
About the Company
The company has been established for almost 5 years and enjoys a solid reputation. It has been profitable from its very first month of existence and has never experienced a month of "negative growth". Emphasis has always been on providing a high quality and stable service in the belief that growth will follow.
About the Customers
Currently there are approximately 1,150 accounts spread over 3 servers. As this is a living, breathing, well established company that number varies from day to day and is deliberately conservative. These are low resource usage clients, not customers who have been sold unrealistic packages prepaid annually! Current aggregate usage is:
220GB disk space.
Approximately 10-11Mbps of bandwidth.
The customers are a mix of small businesses, bloggers, and personal sites. Some of them have been with the company since the very beginning, in fact we still retain the first customer who ever signed up with us! We also have several web designers who sign up their clients with us, and they value the uptime and stability that we offer them.
In addition there are two customers who have dedicated servers. One is on a server at ThePlanet (cost $379 per month) and pays $499 per month. The other is on a dual Xeon 2.4GHz server in our own cabinet and pays $399 per month - the buyer will need to make arrangements to accomodate this customer on a server at the buyer's facility. The customer at ThePlanet would like to upgrade to a more powerful server and has agreed to pay $649 for a dual Woodcrest box with 4GB of RAM and SCSI RAID 5 with 3Mbps bandwidth. This server has been purchased and we can negotiate its inclusion in the sale. This represents an excellent opportunity to add $150 to the monthly revenues and reduce costs by $379 at the same time. Both dedicated servers are offered to the customers on a fully managed basis and neither of them have root access. They are extremely low maintenance.
New customers come from: word of mouth, affiliate program, Adwords and Overture (perhaps $550/month combined).
Tickets average 4-5 per day.
Average revenues from existing clients plus new signups is $13,500 per month. That figure does not include residual income from merchant accounts as that is not included in the sale. The new owner will of course be able to start offering merchant accounts themselves, and we can assist with the transition if needed.
The majority of customers (around 65%) are monthly billed, 20% quarterly, and 15% annually. Again, these figures are fluid but approximately correct at the time of writing. We have an extremely good renewal rate on annual accounts as many of them are customers of the web designers mentioned above.
Payment methods are Visa/Mastercard/American Express (majority), PayPal and a few who pay by check.
Customers are hosted on CentOS servers running cPanel and Fantastico. We also offer SiteZen as a website builder and a reasonable number of customers make use of it. The buyer will therefore need to make allowances for offering SiteZen when the customers are moved.
The servers that the customers are currently hosted on are dual Xeon boxes with SCSI hard drives. If the buyer wishes to use lower spec hardware then more than 3 servers will probably be required.
In the region of 80 IPs will be required to allow for customers with dedicated IPs.
As noted above, the buyer will also need to accomodate one dedicated customer and can optionally bring the other dedicated customer in-house.
- Customer base.
- Hosting company's website.
- Vanity toll free number.
- U.K. freephone number if required.
- cPanel licenses for 4 servers which have been paid until October 2007.
- Adwords and Overture accounts so that click thru history is retained (essentially we will update the accounts with the new owner's information and hand over the login information).
- Inverse Flow helpdesk with a large number of branded DemoDemo tutorials. This is hosted offsite on a seperate domain for redundancy, and the buyer can pick up the hosting if required or make other arrangements.
Customer data is in an owned ModernBill developer license. As the status of MB license transfers is in a state of flux (see sticky at the top of this forum) we cannot claim that it is included in the sale. The MB installation and all customer data are, however, included in the sale. Credit card payments are processed through an Authorize.net/E-Online Data merchant account which is not included, however if you use MB you will know how easy it is to update it with your own Authorize.net information.
If the buyer would like to acquire the hardware that the customers are currently hosted on then that can be negotiated seperately. Assumption is that the customers will be moved to the buyer's own servers.
The BIN price is $175,000 which represents slightly more than 12 months revenues. This seems fair given that these are not "everything for $5 per year" customers and that the buyer will also acquire a well established name.
*** Please Read Carefully ***
No payment plans will be considered. This is a cash only deal. Given that the company makes in excess of $10,000 in monthly profits, if we wanted the money dripped over a period of months we would simply cut expenses to the bone and bleed the company dry.
Priority will be given to companies with a solid reputation who we know will look after these customers. Extra bonus points for a swift closure.
"If u tlk lke ths" in emails then forget it. These are professional clients, many of them business owners, who expect and deserve a certain level of professionalism in communications. Vowels and complete sentences are not optional.
If your company has been established for < 1 year or is not a legitimate incorporated entity then please do not apply. Again, we're looking for a professional and established outfit to take over this business. We will check!
Reason for Sale
Primarily the owner's other business interests. This is one of several businesses owned or co-owned by the owner, and one of the others is taking up increasing amounts of time. Sadly there are only 24 hours in a day. None of the other businesses are in the web hosting industry, and the owner is happy to sign a 12 month non-compete.
Further Information and Offers
If you have further questions, or to make an offer, please request an NDA from [email protected] - please do not PM as no other details will be released without an NDA in place.
Last edited by MyHostForSale; 01-07-2007 at 12:40 PM.
How is the sale progressing? I'd like a chance to look into this in detail if possible, so if the papers aren't signed yet... let me know.
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