Hosting Biz For Sale

**domainAddict** · 01-02-2003, 07:15 PM

I wonder, how much would be approx. value for a webhosting business, if owner decided to sell. Here are specs:

- Shared Hosting on dedicated servers
- 500 costumers ($10/month each)
- on RedHat 7.2, Linux
- servers offcourse not included, since sites would be on rented dedicated servers.

Please note that I do not own this, nor am I intending to buy. I would just like to know the value of it, if one had managed to build such costumer base and decided to sell.

**Banned: CoolHost.com** · 01-02-2003, 07:24 PM

Great question ... but do you have a "DOMAIN APPRAISAL"??

Good Luck.

**domainAddict** · 01-02-2003, 07:27 PM

Coolie: be a good boy now, allright?

**Banned: CoolHost.com** · 01-02-2003, 07:34 PM

"Coolie: be a good boy now, allright?"

I am, truly. It is simply my belief that if the specific forum that we are currently in is entitled "Domain Appraisals", we ought to stick to appraising DOMAINS. Nothing against you, personally ... but I'm pretty sure there are other forums here that would be better suited to addressing your specific inquiry. This site is not about you or me ... it's about the site for ALL of us. We all have to do our part to maintain the integrity of the site.
I think the world of you, Addicto ... but I felt compelled to post here. Please think about it and get back to me. Take care and Good Luck.

**domainAddict** · 01-02-2003, 07:53 PM

The only reason Ive posted here is that I somehow "trust" the DNF members to give me a fair valuation. There are many forums that over-appraise everything, and thats not what im looking for. All I need is fair, realistic comment with a realistic price-tag on it. I thought thats something I could get here, but if Im wrong then just let the mods erase my thread and ill go and ask somewhere else.

**dmyre** · 01-02-2003, 07:55 PM

I hear the going rate is between .05 - 3 X the annual income.

Resources: http://www.webhostingtalk.com

**Banned: CoolHost.com** · 01-02-2003, 08:36 PM

" I thought thats something I could get here, but if Im wrong then just let the mods erase my thread and ill go and ask somewhere else."

Now, don't get all mad Addicto. I simply thought this post was more appropriate in either "Web Hosting" or the "Misc. Forum" ... that's all. In other words, it is not a domain name to be appraised. No big shakes. Hopefully you won't ignore me for too long, but please keep the "signature" regardless (I've had some donations)!

Thanks and Good Luck.

**Banned: NameCaster** · 01-02-2003, 09:00 PM

I agree that this post is off topic.

The only thing worth anything is the 500 customers.
500 x 10 x 12 = $60000
Less operating costs?

**domainAddict** · 01-02-2003, 09:00 PM

Im not mad at all. I just said that if anyone else thinks I should not post it here, it can be either erased or moved somewhere else. No sweat..

Now please lets not go offtopic, since I would realy like to hear some figures.

**INFORG** · 01-02-2003, 09:22 PM

My general rule of thumb (for web businesses) is nothing more than 10 times the monthly net revenue. So assuming that $10 is net revenue per customer, then I would say 50K tops.

You also have to factor in the amount of time the business will take you to run. For example, if they are crappy servers and you have to deal with 100 service requests per day, it isn't going to be as valuable.

There is a lot of turnover with Hosting accounts, so 500 can dwindle pretty quickly without additional promotion. If it is a reseller account, you are also at the mercy of the server owners - one spammer account can shut down your entire network, etc. etc..

I would ask myself why would someone sell off an easy 5k a month?

**domainAddict** · 01-02-2003, 09:30 PM

Originally posted by 2gajgops
If it is a reseller account, you are also at the mercy of the server owners - one spammer account can shut down your entire network, etc. etc..

Thats what frightens me the most.. Its not a reseller plan, its a dedicated server, but one account spamming, having warez, or anything illegal, including being a target of DDOS attack can get the whole server down..

Regarding your appraisal, I think I have to agree. Thanks for sharing your insights!

airnike764 · 01-02-2003, 09:56 PM

I would gladly pay about $15K for this type of business

**izopod** · 01-02-2003, 09:57 PM

Originally posted by domainAddict
Coolie: be a good boy now, allright?

I think Coolie is a "girl"...

izopod

**domainAddict** · 01-02-2003, 10:05 PM

izopod: I know

**Banned: CoolHost.com** · 01-02-2003, 10:17 PM

"I think Coolie is a "girl"... "

HUH???
Good Luck.

**domainAddict** · 01-02-2003, 10:21 PM

haha Coolie

btw: you guys are getting offtopic now! Isnt it enough that my post is offtopic?

**izopod** · 01-02-2003, 11:23 PM

Originally posted by CoolHost
"I think Coolie is a "girl"... "

HUH???
Good Luck.

http://www.juggle.us/ch.htm

You signed with "meg"???

izopod

P.S It makes no difference to me whether someone is a male or female in this business. All I look for is if they give sound advice. In the end that is all that matters...

**Banned: CoolHost.com** · 01-03-2003, 10:04 AM

"You signed with "meg"???"

Initially, back in October '02 ... that is correct.

"P.S It makes no difference to me whether someone is a male or female in this business. All I look for is if they give sound advice. In the end that is all that matters..."

Precisely.

"btw: you guys are getting offtopic now! Isnt it enough that my post is offtopic?"

True. Let's get back to appraising ... and helping our fellow members here in the Forum. Thanks. Good Luck.