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  1. #1
    Join Date
    Apr 2001

    purchasing/selling customer base?

    I received an email recently from someone interested in purchasing my customers. It seemed like a mass mailing sent to any web host...

    I am currently not interested in selling my customers, but the idea is worth a thought.

    Is this a common thing? How much can, let's say 300 customers paying an average of $15 per month be worth?

    I think there was a website a while ago for people interested in purchasing / selling customers in the web hosting industry, but I can't remember the url.. Anybody knows what I am refering to?

    thank you

  2. #2
    Join Date
    Jun 2001
    Denver, CO
    300 Customers * $15 * 12 Months = $54,000 in revenue / yr.

    Depending on who you talk to, I'd say you could probably sell those clients for about 40K - 70K. I know there's a big difference between 40K and 70K, but there's also a number of things that could influence how much the customers are worth ...

    1) What methods of support do they require (email only, phone, toll free phone)

    2) How many support tickets per day do you average?

    3) What has your cancelation rate been?

    4) Are these customers paying month to month, every 3 months, every 6 months, yearly, etc.

    5) How much bandwidth are your sites using per month? How many servers are they on?

    6) What has your actual profit been?

    7) How long have you been in businesss?

    8) Why are you selling?

    9) What role will you play after the sale (completely hands off, kept on as a consultant for x months, etc)

    10) How much did you invest to accuire these customers

    11) How old is each account?

    I could probably come up with a dozen more questions if I put in the effort. Generally though, I think a good starting point is how much you would gross from 12 months of sales, and then the price can go up or down based on a number of factors.

    I hear that back in the .com boom hosting companies where going for 6-8 times their annual revs, maybe even more.
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