phpforfun Posted July 21, 2009 Share Posted July 21, 2009 Hey guys, I just bought a webhostingcompany, and even though I was guaranteed that they would all say, that obviously isnt a guarantee. I find that most hosts want 1 year of their revenue, meaning if the customer pays $10 a month, they want $120 for that single customer, that times 100 customers is a bit. Do you buy customers? If so, how do you guarantee that they will stay? 0 Quote Link to comment Share on other sites More sharing options...
simplybe Posted July 21, 2009 Share Posted July 21, 2009 You can't. Customers will always leave for various reasons. 12 x the monthly revenue is far more than I would pay. There are lots of other factors to consider. Just because a customer pays $10 doesn't mean that customer is worth much. It depends on what they use, webspace etc.. How many tickets does the host receive per day. how many yearly paid accounts will you have to host if any. 0 Quote Link to comment Share on other sites More sharing options...
othellotech Posted July 21, 2009 Share Posted July 21, 2009 Do You Buy Companies? Regularly even though I was guaranteed that they would all stay The seller obviously saw you coming ... There is no way anyone can g'tee what customers are going to do, as a breed they're fickle, inconsiderate, miserable, jumpy and stressed creatures, that need constant love, care, attention and the odd kick-up-the-@rse meaning if the customer pays $10 a month, they want $120 for that single customer, that times 100 customers is a bit. "bit" in this context being $12k, which is tiny in the M&A's world... 0 Quote Link to comment Share on other sites More sharing options...
Dominic Posted July 21, 2009 Share Posted July 21, 2009 We do indeed buy other hosts but would never consider paying a full year's turnover - that's ludicrous. A multiple of the profit or X months revenue perhaps. iirc the priciest deal we ever agreed to was 7m revenue which was a little bit silly - but was worth it to expand into that particular geographical area. 0 Quote Link to comment Share on other sites More sharing options...
phpforfun Posted July 21, 2009 Author Share Posted July 21, 2009 I just purchased a small company for 1 year revenue, and its well worth it, if they stay... Where do you guys go to buy hosting companies? I would like to purchase more in the future 0 Quote Link to comment Share on other sites More sharing options...
kris1351 Posted July 23, 2009 Share Posted July 23, 2009 50-75% of 1 years revenue is pretty standard depending on what type of account mix and term they have. You can't give 1x for accounts that are already prepaid for months or years at a time that is for sure. A good monthly base is what I typically look for and renewals coming up on multi-month/year customers. Each purchase should be a case by case analysis honestly. There are tons of factors to really look into before paying them out. 0 Quote Link to comment Share on other sites More sharing options...
thehost5968 Posted July 23, 2009 Share Posted July 23, 2009 Hi Ref:how do you guarantee that they will stay? I would say pay like 40% now and 10% each month over the next 6 month then if get like 50% of client move on you can change the payment's and if they all move with him/her then you have only lost 40% of the price. That is how most hight street shop's do it in the UK. 0 Quote Link to comment Share on other sites More sharing options...
brianoz Posted July 23, 2009 Share Posted July 23, 2009 6 months income is the usual maximum. I like the monthly payout system though. Factors influencing value are things like: what control panel they use, what billing system they use, do they use phpsuexec/suphp, do they have full contact details for all their customers, do they have a support phone number, what they charge per month/year, what their current server is like, what are the websites hosting, etc. 0 Quote Link to comment Share on other sites More sharing options...
EasyWHMCS Posted July 27, 2009 Share Posted July 27, 2009 Where is it you guys buy companys from? how do you find ones to buy ect? 0 Quote Link to comment Share on other sites More sharing options...
Business Hosting Online Posted July 27, 2009 Share Posted July 27, 2009 http://www.resellerguide.com/articles/buying-selling-hosting-company/buying-selling-web-hosting-company/233 0 Quote Link to comment Share on other sites More sharing options...
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