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  1. #1

    Established Hosting Company 4 Sale

    NOTICE: PLEASE READ THIS THOROUGHLY BEFORE ASKING QUESTIONS!! ANY QUESTIONS WHICH HAVE ALREADY BEEN ANSWERED WILL BE IGNORED. IF YOU ARE A SERIOUS BUYER YOU WILL TAKE THE TIME TO MAKE SURE YOU UNDERSTAND EACH SECTION OF THE INFORMATION BELOW AND WILL NOT ASK QUESTIONS THAT HAVE BEEN PREVIOUSLY ANSWERED.

    Due to a change in future business plans (non website design and hosting related), I am considering selling of our 9 year old family owned web hosting business.

    This potential sale would include all company domain names, client domains, client accounts, leased server account (which include control panel licenses) online billing script and possibly PayPal, & Merchant Account. Any offers MUST be for the entire package to make the transition easier for our clients and not require any of them to be moved causing them downtime. I will NOT "part out" the business or sell just the clients. If you do not want everything offered please do not respond to this offer! This is a turn key running business with huge growth potential. The hosting business is listed within all the major and minor search engines. Very little marketing/advertisement and most business has come via word of mouth. We have an excellent and untarnished reputation in the industry.

    NOTE: All figures quoted in this offer are in US Dollars ($).

    Included in the sale:[*]Primary business name and domain names for the website hosting company (2 established hosting domain names).[*]1 domain name for a domain sales.

    Please see details below about the domain/hosting sites[*]4 leased servers, all at the same Data Center.[*]All paying client accounts (active, past-due and suspended).[*]WHMCS license (unbranded)[*]All client domains managed and controlled by us (all with godaddy, wildwest & Directi).
    [*] Fully developed and automated website
    [*] RVSiteBuilder & RVSkin Licenses [*]1 CD of over 1000 templates, files, etc purchased from eBay with resell rights (used to offer clients free site templates if needed).
    [*] At least 3 domain hosting domain names
    [*] WHMSonic (Streaming Media) Partnership (Offers license discounts)
    [*] Everything will be included to run/manage this hosting business. All username/passwords and login details will be supplied upon close of this transaction.
    This business can be run/managed from anywhere in the world with internet access.
    [*] 40 hours of training included to ensure a smooth transition.

    NOT included in the sale:
    * Equipment, computers, phones, etc
    * Any non-related business ventures or domains/sites.
    * Any domains/sites not part of the hosting business.
    * GoDaddy domain account (all included domains will be transferred to your account).


    Offer Details:

    This business can easily be run/managed by 1 or 2 people full/part time. It really takes very little to run being that we have everything automated. All accounts are automatically created upon receipt of payment via the billing system.

    With a little marketing this business could easily yield over $200K or more a year.

    Current Income Figures:

    2007 Bank statements showed a gross of approx. $36,000.00.
    2006 Bank statements showed a gross of approx. $27,000.00.


    (This does not include commissions from partners & affiliates which will vary from $150 to over $300 per month combined) There is huge growth potential with marketing efforts.

    Wildwest Domain Reseller approx $150.00 per month average


    Recurring Income Summary

    Item Name
    Monthly
    Quarterly
    Semi-Annually
    Annually
    Biennially
    Annual Revenue
    Products/Services
    Hosting - Advanced
    $38.00
    $0.00
    $49.99
    $99.99
    $0.00
    $655.97
    Dedicated - AMD-ATHLON-XP-2400
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Reseller - Bronze
    $79.98
    $0.00
    $0.00
    $334.99
    $0.00
    $1294.75
    Hosting - Buddy
    $9.98
    $0.00
    $0.00
    $0.00
    $0.00
    $119.76
    Hosting - Deal
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Dedicated - Dedicated Template
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Reseller - Diamond
    $99.99
    $0.00
    $0.00
    $0.00
    $0.00
    $1199.88
    Hosting - FREE HOSTING
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Special - Gift Hosting Special
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Reseller - Gold
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    VPS - hyper100
    $149.80
    $0.00
    $0.00
    $0.00
    $0.00
    $1797.60
    VPS - hyper200
    $29.95
    $0.00
    $0.00
    $0.00
    $0.00
    $359.40
    VPS - hyper400
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    VPS - hyper600
    $199.85
    $0.00
    $0.00
    $0.00
    $0.00
    $2398.20
    VPS - hyper800
    $89.95
    $0.00
    $0.00
    $0.00
    $0.00
    $1079.40
    Hosting - Mega
    $25.00
    $0.00
    $0.00
    $499.98
    $0.00
    $799.98
    Hosting - Personal
    $28.00
    $29.97
    $0.00
    $399.90
    $0.00
    $855.78
    Reseller - Quartz
    $24.99
    $0.00
    $0.00
    $339.98
    $0.00
    $639.86
    ShoutCast - Shoutcast A - 64Kbps
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    WHMSonic Server License - ShoutCast Admin Pro One Time
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    WHMSonic Server License - ShoutCast Admin Pro Yearly
    $0.00
    $0.00
    $0.00
    $847.50
    $0.00
    $847.50
    Reseller - Silver
    $59.99
    $0.00
    $0.00
    $210.00
    $0.00
    $929.88
    Hosting - Standard
    $55.49
    $14.99
    $29.99
    $499.90
    $0.00
    $1285.72
    VPS - VPS
    $84.95
    $0.00
    $0.00
    $0.00
    $0.00
    $1019.40
    VPS - web100
    $399.80
    $0.00
    $0.00
    $0.00
    $0.00
    $4797.60
    VPS - web200
    $304.91
    $0.00
    $0.00
    $0.00
    $0.00
    $3658.92
    VPS - web400
    $69.95
    $0.00
    $0.00
    $0.00
    $0.00
    $839.40
    VPS - web600
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    VPS - web800
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Hosting - webresel_50
    $0.00
    $0.00
    $0.00
    $1280.00
    $0.00
    $1280.00
    Hosting - WIN-Advanced
    $14.50
    $0.00
    $0.00
    $0.00
    $0.00
    $174.00
    Reseller - WIN-Bronze
    $0.00
    $0.00
    $0.00
    $169.99
    $0.00
    $169.99
    Reseller - WIN-Diamond
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Reseller - WIN-Gold
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Hosting - WIN-Mega
    $30.00
    $0.00
    $0.00
    $0.00
    $0.00
    $360.00
    Hosting - WIN-Personal
    $16.50
    $0.00
    $0.00
    $37.49
    $0.00
    $235.49
    Reseller - WIN-Quartz
    $49.98
    $0.00
    $0.00
    $0.00
    $0.00
    $599.76
    Reseller - WIN-Silver
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Hosting - WIN-Standard
    $38.00
    $0.00
    $0.00
    $0.00
    $0.00
    $456.00
    Hosting - WIN1
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Special - Yearly Hosting Special
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    Products Addons
    Additional IPs
    $35.00
    $0.00
    $0.00
    $0.00
    $0.00
    $420.00
    128bit SSL Certificate
    $0.00
    $0.00
    $0.00
    $150.00
    $0.00
    $150.00
    Reseller Access Rights
    $15.00
    $0.00
    $0.00
    $0.00
    $0.00
    $180.00
    Extra / Dedicated IP
    $3.00
    $0.00
    $0.00
    $0.00
    $0.00
    $36.00
    Private Name Servers
    $5.00
    $0.00
    $0.00
    $0.00
    $0.00
    $60.00
    Private Domain
    $0.00
    $0.00
    $0.00
    $30.00
    $0.00
    $30.00
    Dedicated IP for SSL
    $0.00
    $0.00
    $0.00
    $30.00
    $0.00
    $30.00
    Fully Managed Server Support
    $50.00
    $0.00
    $0.00
    $0.00
    $0.00
    $600.00
    Managed Full Backup
    $20.00
    $0.00
    $0.00
    $0.00
    $0.00
    $240.00
    Domains
    Domains
    $0.00
    $0.00
    $0.00
    $552.00
    $0.00
    $552.00

    Total Income: $30152.24
    Report Generated on 07/10/2008 13:56


    Expenses:

    The only recurring expenses that will be transferred to the buyer are the 4 servers which run roughly $850.00/mo, roughly $100.00 monthly lease payment for license fees and of course domain renewals. Most other expenses are typical business related and are not transferred to the new owner (phone, cell phones, office internet connection, etc). The datacenter may want a one time $25 per server to transfer to new ownership.

    Profit:

    (Reported from within WHMCS)

    Hosting Income Gross: $30152.24 per Year


    Broken Down as follows:

    62 Accounts monthly @ $2062.55 per month


    4 Accounts quarterly @ $44.96 per quarter year

    2 Account Semi Annual @ $79.97 per ½ year

    110 Accounts Yearly @ $5469.22 per year


    Approx. 60 domains paid yearly @ 12.00 each domain

    Approx. $10,000.00 yearly is selected website design and customizations (not included in “Hosting Income Gross”)

    We are positioned high on Google, Yahoo, MSN and several other search engines so we receive between 5 and 15 requests for new hosting per week just from search engines.



    Domain Sales Websites:

    We offer domain sales from a sub domain off the main website domain via Directi reseller, and we have a Pro Reseller account from Wildwest Domains, which is a stand alone site under a domain centric domain name.


    Extra Income:

    We receive various commissions from Template Monster, Google Adsense, Internet Marketing Center and Merchant Account Partners ranging from $150 to $300 a month as mentioned above.


    Billing Details:

    All of our clients are billed using WHMCS with all invoices due on the anniversary of each account (considered late 5 days past the anniversary date, as a rule our clients are excellent to pay and have been with us several years.) Billing can be transitioned to put all accounts monthly as their anniversary date comes around if you want to do this.

    Support levels & averages:

    We currently offer support via ticket system (built into WHMCS), email and phone. We average between 2 and 10 requests per month with most months being under 6 requests. Most requests are made via the ticket system with a few phone calls on occasion. Most clients never need support unless it is server, account or billing related. We've been fortunate to have some very easy to manage long term clients.

    Client Breakdown (as of this post - according to WHMCS stats):

    264 total clients in WHMCS

    23 VPS Server clients
    10 Shared Reseller clients
    36 Other active accounts
    9 suspended accounts
    0 fraud attempt accounts
    18 cancelled accounts (left in for record keeping and collections of past due amounts owed)

    There is 1 server for hosting & reseller accounts and 2 servers for dedicated server clients, and 1 server for W2K3 Plesk w/ SQL2005 clients. Standard/Virtual hosting accounts vary in size and price due to us honoring existing plans and prices when we moved hosting from a previous company several years ago so it's impossible to list here. A couple of our clients are big names and well known on the internet and in their industry. A lot of our clients have been with us for over 2 years and many for between 3 and 6 years.


    Server 1 = 10 Linux Virtuozzo VPS’s (cPanel licenses included from DC)

    Server 2 = Windows W2K3 Server w/ MS SQL2005 Standard & Plesk Interface
    Server 3 = Master HyperVM (6 VPS’s)
    Server 4 = Slave HyperVM (6VPS’s)

    Now for the most important part:

    We have always had an excellent relationship with our clients. Most of them are extremely loyal to us and give us excellent referrals. Because of this, who our clients end up with is of major importance and I will NOT turn our clients over to just anyone. I keep the business and hire someone to run it before I would turn them over to just anyone (and if a qualified buyer is not found, that is what I may do)! So, before I will consider ANY offers, the company making the offer MUST meet the following minimum criteria:
    [*]MUST offer Personalized service (likes to get to know the clients on a less formal basis)[*]MUST provide support during business hours and must offer a phone number for support! (USA Based would be recommended)[*]MUST be an ADULT over the age of 18 (no "kiddie-designers" or "kiddie-hosts")[*]MUST have a Minimum of 2 years experience in the website design and hosting.[*]MUST use cPanel, Plesk, HyperVM, Virtuozzo, LXAdmin control panels for hosting and be very familiar with them.[*]MUST guarantee to honor and not to increase or change any current client hosting plans or prices for a minimum of 1 year.[*]MUST believe in going above and beyond for clients.[*]MUST agree to keep clients on their existing servers for at least 3 months (this means keeping the existing servers that long).

    If you do not meet ALL of the above criteria, do not bother to inquire as I will be verifying everything! Our reputation has been built on the key concept of offering the best customer support and service in the industry.

    Expected Price:

    Who our clients end up is very important. I have consulted with several business brokers on how to price the business and all have said market value is 2 to 3 times the yearly Gross income. With that said the starting figure for offers at
    $50,000K which is far less than 2 years gross income. I will only consider offers by a company that meets the minimum criteria I have given. I am not looking to get rich from the sale of our web hosting business, only to find someone who is serious enough to invest a fair price and to get back a fraction of what I have invested in the business over the past 9 years.

    There is HUGE growth potential in the business. We have built a developed a very strong name for ourselves in the industry, and is reflected in multiple host directories and review sites. We have an awesome reputation that has not been tarnished.

    If an agreement is made, I will be expecting fast payment (in full) of the agreed price and a fast transition for us and our clients to prevent and/or ease any fears the clients may have once the deal is publicly announced to them. Those who do not have the means to provide this should not respond or make offers. If an agreement is made, payment will be in the form of guaranteed funds (wire transfer only) and payment in full must be received before anything is turned over to the buyer.
    No "payment plans" or "revenue share" offers will be accepted so don't even ask.

    Lastly, once a final deal is agreed on, the buyer must agree to at least 3 months from the agreement date of hosting at no charge for moving our own private domains and sites off the server to a new one.

    Final notes:

    1. I reserve the right to back out of any deal that I do not feel is in the best interests of our clients.
    2. I reserve the right to refuse any offer made by anyone who does not meet the minimum requirements above.
    3. THOSE WHO DO NOT HAVE THE FUNDS TO MAKE A LEGITIMATE CASH OFFER DO NOT BOTHER RESPONDING! SUCH RESPONSES WILL BE IGNORED.


    With all of the above said, I will now consider offers. All initial inquiries & offers are to be made via PM only. By requesting further information or making an offer, you are agreeing to non-disclosure. Before we release specific company details a signed NDA will need to be signed and faxed/emailed back to us. If you do not agree, do not inquire!


    *As an added bonus, I will include a 100% fully developed Radio Controlled Car/Truck website/business and all rights to buy wholesale from one of the largest RC manufactures, if the asking prices is met or exceeded.
    This site is fully developed and ready to go. We used it as a e-com demo site, which has actually taken orders for RC cars/trucks and parts. All cars, trucks, parts, prices, pictures, etc. have already been imported into the shopping cart system. Open the door for business and you ready to take orders. You are more than welcome to run this business, use it as a demo, sell it, or let one of your kids run their 1st internet business. All inventories have been sold, and will only include: The domain name, website, and information to buy replacement inventory at 40-50% discount of retail.
    Last edited by Chris_M; 07-16-2008 at 10:34 AM.

  2. #2
    We will stop accepting offers on Aug. 1, 2008, and accept the highest offer by Aug. 8, 2008.
    If you have any questions, please ask via private message.

    Thanks to all who have shown a great interest in the oppertunity to buy this well established hosting business.

  3. #3
    We are a smaller US based hosting company interested in this purchase but can not PM yet through the forum. Could you please contact me to let me know where the current bid is? Also is this a US based company for sale (assume so just double checking)and where is your client base mostly located? Please email to

    hostseeker (at) gmail (dot) com

    Thanks.

  4. #4
    replied to tmac2627

  5. #5
    Join Date
    Dec 2002
    Location
    Edmonton, Alberta
    Posts
    11
    Hello I am interested in this company as well but do not have enough posts to be able to PM. Could you please send an NDA to
    thedoc {at} itdoctor {dot} ca .It would be nice to know the current bid as well?

    Thanks

    Dave

  6. #6
    Hi,

    Can you please send me the details at sam<at>theplanethost <dot> com.

  7. #7
    emails sent to the last two post requests....

  8. #8
    Nice deal,

  9. #9
    Join Date
    Dec 2002
    Location
    Edmonton, Alberta
    Posts
    11
    Hello; I received your email but when I replied it bounced with an unknown recepient error??

    Cheers

    Dave

  10. #10
    You can contact me directly at: jason [at] tecpeople . net

  11. #11
    Join Date
    Dec 2002
    Location
    Edmonton, Alberta
    Posts
    11
    Thanks;
    email sent

  12. #12
    Thanks everyone, offers are no longer being accepted for this transaction...
    An offer has been accepted.

  13. #13
    Join Date
    Jun 2008
    Location
    VA
    Posts
    506
    did the sale go through?

  14. #14
    Yes, we will be closing escrow this week.

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