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Thread: Buying Clients

  1. #1
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    Buying Clients

    What's the correct proceeded when purchasing clients from another web host? What payment method should be used? Should I contact a lawyer? How do I verify I'm not getting scammed?

    If you have purchased clients before, your insight would be appreciated.

  2. #2
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    We always get our Attorney involved when acquiring new client base and/or company's, just keeps everything going smoothly and also gives you the additional comfort just in case you missed out something in the agreement which was drafter by the seller or yourself.

    Usually payment would be through escrow to ensure everything is fair until all clients are transferred and/or acquired. Having access to the company's financial statements prior to the purchase is important so that you can verify the client base and also see how long they have been there for, this is usually done under a NDA which is the norm.

    The important thing is seamless migration, try to keep the existing staff at least for a while until the migration is completed so they can assist in communication and supporting your existing and new client base.

    Good luck!

  3. #3
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    You only need to get an attorney involved if the money involved is more than you'd be willing to walk away from empty-handed.

    --Tina
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  4. #4
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    I must agree with Jason...always use an Attorney to get the process moving along smoothly. You save a lot of heartache in the long run. Trust me on this

  5. #5
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    Sorry to hijack this thread, but when this sort of process goes ahead, are the clients normally consulted? In my view a client is no-one's property to be bought & sold at will. I personally would be a bit cheesed off if I was suddenly switched to another host after taking the time to find the right one for my needs.

    Again, sorry for the hijack

  6. #6
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    Quote Originally Posted by RandomLittleHost View Post
    Sorry to hijack this thread, but when this sort of process goes ahead, are the clients normally consulted? In my view a client is no-one's property to be bought & sold at will. I personally would be a bit cheesed off if I was suddenly switched to another host after taking the time to find the right one for my needs.

    Again, sorry for the hijack

    No, the clients are normally not consulted and that would be highly unusual. The reason for that is because it would instantly scare the clients because of the uncertainty and cause many of them to jump ship.

    From a customer's point of view, I understand your concern. From a business point of view, it would completely undermine the process and kill the value of the asset. Hopefully, the new host would be competent enough to take on the new customer base without any problems.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
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  7. #7
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    I personally do not see a problem in it because from a client point of view...if i had a website up and running and my host was going to close I would be devastated that he simply closed and did not seek my interests in finding me an alternative which offers services close to what i was accustom to getting from him

    From a business point of view, if my service provider suddenly closed, my business would go down the drain if i relied heavily on internet services.

    All in All, I really do not see the prob especially if I am being put in better hands :-)

  8. #8
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    Quote Originally Posted by cpoalmighty View Post
    I personally do not see a problem in it because from a client point of view...if i had a website up and running and my host was going to close I would be devastated that he simply closed and did not seek my interests in finding me an alternative which offers services close to what i was accustom to getting from him

    From a business point of view, if my service provider suddenly closed, my business would go down the drain if i relied heavily on internet services.

    All in All, I really do not see the prob especially if I am being put in better hands :-)
    Remember though, not all businesses that sell their clients are hurting for money or looking at selling as an alternative to going bust. Most businesses should have an exit strategy, which includes selling assets (or a portion of) at some point that makes financial sense and allows the owner(s) to invest those proceeds in other diversified assets.

    --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)

  9. #9
    recent example is vaserv ltd brands being ab2b, cheapvps, fsckvps.com etc, rus's company taken over from 1st July 2009 by Blue Square Data Group

  10. #10
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    Quote Originally Posted by mpeter1978 View Post
    recent example is vaserv ltd brands being ab2b, cheapvps, fsckvps.com etc, rus's company taken over from 1st July 2009 by Blue Square Data Group
    Okay, wait...what?? I missed that announcement. Do you have a link to some news on that?

    --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)

  11. #11
    They sent details out by email on:-

    From: [email protected] [mailto:[email protected]]
    Sent: 28 June 2009 16:50

    Talk to their support if you want it resent. Do not want to brake their rules

  12. #12
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    Quote Originally Posted by mpeter1978 View Post
    They sent details out by email on:-

    From: [email protected] [mailto:[email protected]]
    Sent: 28 June 2009 16:50

    Talk to their support if you want it resent. Do not want to brake their rules
    I'm not a customer, I was just surprised that I hadn't heard of this or saw any news posted @ WHT about it.

    -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)

  13. #13
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    Quote Originally Posted by AH-Tina View Post
    or saw any news posted @ WHT about it.
    First mention I saw was here: http://www.webhostingtalk.com/showthread.php?t=873552
    Having problems, or maybe questions about WHT? Head over to the help desk!

  14. #14
    their beem a few mentions in a few threads around the issue arround their hacking berried.


    As pound hosts is part of blue squre data group as well.

    But they been keeping their client inforfmed by email from time to time

    Think Blue Square Data Group is acting as a parent, and their create to new sub sidery under it, VAServ customers on UK-based servers will, from 1 July, contract with BlueSquare Data VPS Ltd (trading as VA Serv) Customers on US-based servers will, also from 1 July, contract with BlueSquare Data VPS (US) LLC (trading as VA Serv), and I guess he has some directorship on the new board.

    If you go to company house for the ltd, you be able to download the company info after you pay company house 1 fee.

  15. #15
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    Use Escrow.

    I don't trust any body now and Escrow makes sure that the other person in the deal does their bit.

    Don't be too hasty to release the funds via Escrow either. Take your time.

    It's the honest person that always gets burnt.
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  16. #16
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    Quote Originally Posted by RandomLittleHost View Post
    are the clients normally consulted
    It depends on the clients and the type of business relationship.

    When we take over a generic shared-hosting business, no, they're not consulted although they are informed after the event, and I've found if you continue to provide the same or better level of service, for the same or better pricing, and do it without downtime, then most of them dont notice (which is why over 4 years later we still get people ask who we are !)

    When we take over a primarily dedictaed/colocated/managed services compnay, then the clients are all consulted/informed well in advance, and meetings setup with the larger/more bespoke clients beforehand to make all parties are happy with teh changeover.
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