Well I have seen this company in and out. I am trying to buy this hosting company and I need your advise. www.hostpug.com The owner has showed me the admin area, WHM, and proof of customers and revenue. It's got a support ticket system and what catches my eye is that they got a vbulletin forum installed. The asking BIN is $900, And they are offering me all of this. I think it is a okay investment because the monthly revenue is about $100 and I have seen proof of that growth. Also they got unlimited hosting from their server providers. Now I want to ask you DP members if you think this is a good enough deal for me. Honestly $900 is not that much for this kind of business. But please I would like to hear from the members of DP. The owners reason for selling it was because he could not keep up with managing all of his clients and is too much work. But I believe if I could hire some members on DP to help me manage we can run this comapny smoothly. Let me know your thoughts.
From my understanding they are 1 month old. But already $100 worth of clients right now. So I am still undecided.
I don't know, its a bit risky to be paying $900 for a hosting company thats only being up for a month, even though it has made $100 in its first month. On the other hand, you could buy it and increase the revenue each month, but if it was me i'd not buy it on the basis that it has made $100 in its first month of being up and running.
Some things you should be concerned about here: 1) The forum is powered by vBulletin, which usually isn't a transferrable license, so you may have to fork out the $300 annual license fee when you take the site over. 2) If they are having trouble managing it with such small revenue, there's something wrong. $100 in month revenue would be about 20-30 paying customers from what I would gauge from their packages. That's a very small amount to have such trouble with managing. 3) WHMCS licenses are non-transferrable I believe, so you may have issues there. 4) Whoever they are reselling for may not allow the service to be transferred. You'll have to check with whoever they are reselling from. 5) You have to wonder about a web hosting company that allows you to post offers/promotions from competitors on their forums. All that from me spending about 3 minutes on their site. Is it worth it? Probably not, you're looking at alot of extra fees just to assume ownership. And for just 1 month of customers it's definately not worth paying 9x the revenue.
The story is like this: "A" has a big hosting company called : http://www.1XXXXHostingXcompanyXXXX1.com so he recieves a lot of sign up daily. and it is easy for "A" to create a simple hosting company called: www.hostpug.com and bring 5 signup to it. Now "A" make money of $100USD and decided to turn this $100USD into $1K usd so it is easy for him to offer the new website www.hostpug.com for sale while he is taking care of his original website http://www.1XXXXHostingXcompanyXXXX1.com and say bye bye to those 5 signups he got from his original hosting company! You will be the victam and buy this www.hostpug.com but you will wonder why nobody signup after you buy!!!! and then give up... but after a while you will look in the internet to see some websites that looks like this: www.hostpug1.com & www.hostpug2.com & www.hostpug3.com ... etc! because the owner of that big company loves the game of turning each $100usd into $1K usd! So the original owner is just turning his $100USD profit of first month into $1K usd profit by finding people like you! Take Care!
Thank you for all your feedback. I am going to ask all of these questions. Also for vbulletin I don't mind spending more to own the forums. But we will see what we can work out.
A site that is 1 month old should never sell their site for 9 months worth of rev. but hey look at your sig, if youre making 12k a month then youve got plenty of money to buy.
Stop your thinly veiled attempts at advertising your own site in hopes to sell it to some unsuspecting member.
Excuse me? How is this advertising... I don't own this site... If I were to advertise a hosting business I would be direct about it and sell my plans in the hosting section. Also can you read that I am buying the site... If i were to sell it I would be caught immediately by a senior member with this thread alone. Think before you post For everyone else, I am still in discussions with the owner today. I know it is only a month old but I can see already 2 new member sign ups today. I think I am going to pursue to buy this business. Can anyone recommend me a new payment method. I know paypal is a huge risk, how about Escrow? Also for vbulletin license I don't have to pay at all. i can just use his license as it is already setup on the doamin. I will need to get new active members on it now. I really appreciate everyone's thoughts and opinions. -Tony
I would personally be asking the following: iSafeSite - Click to Verify - can not click link Certified by TrustGuard - Click to Verify - can not click link McAfee - Normal Hacker Safe logo is clickable and looks a bit different. Why are they not doing the correct linking? I personally would be careful about any purchase
is too much, it's 1 month old this means risky , normally should be 5 X - the revenue not more, but for a 1 month old business less, personal opinion
They had unlimited hosting from their upstream? For this alone I won't touch it with a 10 foot pole. There is no unlimited and you won't be sure when the upstream decided to either kick you out or ask you to upgrade to a dedicated which could easily brings about losses rather than profits.
I think that as long as the business is created, it wouldn't take you much to turn it into a profitable business through marketing in order to break even and start seeing results quickly. I say... go for it. Although, I would negotiate the price down a bit since it's still so new.
Seriously from someone who was in web hosting and got out don't do this. Its a waste of time and money. I made 200+ with my own hosting and after a few months my servers went out and even though I was promised backups I didn't get them. I had to either spend a lot of money to renew everything or stop where I was. I decided to stop and I think you shouldn't even start.
I may be interested in partnering up with you to do this business, but $100 a month is NOT enough to host clients. I have a server that I could put up but it's cost is $180 per month, so we'd need at least that much to break even. Here are the specs: Intel Quad Core Q6600 4GB DDR2-PC6400 RAM 2x 160GB 7200rpm HDD - RAID 1 1000GB Bandwidth Burstable to 2000GB Bandwidth per month DirectAdmin Control Panel
I am starting to change my mind about buying this business... But I am still considering all of these questions. But I really appreciate everyone's thoughts and opinions. Well How am I supposed to ask everyone without letting everyone know what I am getting in this deal... hmm...