Selling Web Hosting Company For Sale

I'm looking to sell my web hosting company, CDDHosting (www.cddhosting.com). Below are the stats.

Revenue
Total Clients: 143
Monthly: $1028.56 USD (60)
Quarterly: $4.50 USD (1)
Semi-Annually: $582.53 USD (30)
Annually: $4367.64 USD (110)
Biennially: $0.00 USD (0)
Triennially: $178.50 USD (1)
Est. Annual: $17,952.92 USD

Costs
US Dedicated Server - $479/month (SoftLayer Dallas, TX Datacenter)
UK Dedicated Server - $179/month (RackSrv Manchester, UK Datacenter)
WHMCS reseller account (currently getting WHMCS licenses at $10.40/month/each and after 5 or so more licenses the price will reduce to $8.70/license) - 288.90/month
Softaculous: $5/mo (servers also have fantastico deluxe)
WHMPHP: $14.00/month
VPS (for website and client area): $30/month
UK Server cPanel + VPS cPanel (US cPanel included in cost above): $51/mo
Total: $1046.90/month

Costs are quite a bit, but SoftLayer is definitely the best. We have had no problems whatsoever, they're always on top of things, and it's true you get what you pay for, it's definitely worth the price.

Anything after about $1040/month is profit. Considering the site generates $1100 - $1860/mo, profit is anywhere from about $60 - $800/month. The past few months, profit has been about $500 or so.

As long as the site is promoted, it will easily generate $1800/month, and you can also grow it as you go along of course. The only months we haven't generated up to $1800 are months when we did nothing. We haven't neglected it or anything, and have been offering support and all that, we just haven't been growing it further mostly because I don't have a bunch of time.

I started the host in January, 2010 and in 2010 we generated $10,321.73, and so far this year has generated $9,096.90 and will probably end up generating around $15,000 - $17,000 at the current rate by the end of the year.

We also have an eNom domain reseller account where we currently get domains for $9.25/yr. Also, the current website design is unique (has been copied by quite a few people though), I designed and coded it myself.

This site has great potential, and if marketed correctly could definitely generate a lot of money. It's currently generating the money it is with no promotion. It's basically hit the snowball effect, but is slowly going down since we haven't been promoting it. It says 63 backlinks on the post, but the actual total backlinks is around 18,000.

Most of the sales come from Google, but since we haven't been doing much promotion and backlink building, it's going to start going down, and it would be a shame to see it all just stop growing and end up dying which is why I'm looking to sell it.

If anybody is interested and needs anymore information, feel free to PM me or send me an email at .

 

$16,000, really?

 

I've actually purchased hosting from you before. Nice sale, good luck with it. I can see you getting 12K+.

 

I see you are also selling dedicated servers ?! May I know where do you purchase them and whats the profit on servers sales ? And I'm wondering about staff.. who is taking care of the servers I have to hire some one right ?

 

Does no one have cPanel on any of their VPS's? I presume there is a cost associated with purchasing the licenses which so far as I can see you haven't stated in your breakdown.

 

Selling a web hosting company is not easy. Most people on DP are into the cheap automated sites. You will have better luck on flippa with this one.

 

Can you provide an estimate of total monthly bandwidth and disk space usage please?

 

We resell servers throught SoftLayer and RackSrv and get about $20-$30/mo profit each. Servers aren't our biggest product though. Reseller hosting is where we bring in the most money.

I did state it:
UK Server cPanel + VPS cPanel (US cPanel included in cost above): $51/mo

I plan on posting it on Flippa after this, just figured I'd give this a try first.

 

I'm not talking about your VPS, I'm asking if any clients with VPS services have cPanel on their VPS; if so where are the costs for the licenses?

 

I'm pretty sure VPS cPanel licenses are $16/mo

 

This is really a basic point that I'm trying to make.

A VPS may be sold with cPanel. The client may pay $30 for both.
Judging on revenue alone it would look like over the course of a year you'd make $360, but this isn't the case. If a cPanel costs you $16 then you're actually only making $168 over the year.

So I'll ask my question again. Are any of the VPS clients hosted with cPanel. If so, what are the costs associated.

 

We don't get many VPS sales. We probably have 1-2 VPS clients if any, and as for cPanel if any of them do use it, $20 is added to their bill per month.

 

aT FIRST WE joinLY Doing with your business. after that its working well i can buy your company

 

Knock on wood! You can also go to web hosting talk where you would have no problem selling it!

 

If you're making 18k total, but you're paying 12k thats 6k in revenue, your price is too high IMO, but let me ask why are you selling if you don't mind? I didn't see an expense in there for out sourced support so I assume you are handling end user support youself? Thanks

 

For $15/Mo for vps not $15/Mo for vps.