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According to major search engines including Google and Yahoo, there are more than 4000 Web hosting businesses around the world. The Web hosting business is extremely competitive these days. There are many successful Web hosting companies today. If you do not wish to allocate funds or if you do not have the financial resources and/or the skills to administer your server and market your business, it is unbelievably difficult to succeed.
Marketing your Web hosting business is not as simple as many people think. Building a Web site or by simply entering some information into a search engine database's, won't help get you noticed and attract customers. Customers are far more difficult to attract than one would imagine, and because of this and several other reasons, many people can not afford to run a quality web hosting company. In the end, they sell their business.
Unfortunately, there are many hosts that get into financial trouble and have to leave the market. This not only applies to small startup hosts, but also to well-established Web hosting firms. If the investors are not happy with their return on investment or loose patience in recouping their investment, they may just cut their losses and move on to other business projects.
There are many reasons why someone would want to sell their Web hosting business. Selling your Web hosting business should be an option for an exit strategy. The idea should be to sell your hosting company because you want to and not because you have to.
Now, we'll answer some of the frequently asked questions:
1. It is rather difficult to predict the precise value of your business. The size of your company, the number of clients and the revenue your company generates will determine it's value.
The value of a hosting business can be subjective, but some consistent rules of thumb apply. A typical way to evaluate your company's worth is by using a simple "multiple of revenue." formula (the monthly average revenue x the number of accounts x 6 months). For example, a hosting business with 500 clients paying average $10.95 per month today will be worth around 500 x 10.95 x 6 = $32,850. From that starting point, many factors can surface to positively or negatively impact the value of your business.
2. Factors that increase the value of your business:
Interested in opting out of Web hosting business?
ServerTune is currently expanding its customer base by acquiring Web hosting and design clientele from hosting operations and resellers around the world. Our technicians and staff will integrate your operation into ours. We'll take over all administrative and technical support issues from the immediate point of transfer, and migrate your entire enterprise to our network. We offer you the opportunity to trade risk for reward and place yourself in a profit payout position.
If you are serious about opting out of Web hosting business, please provide detailed information about the following:
Also, please include (in Excel spreadsheet, if possible)