Back to Listings Listing #44520: Hosting

Asking Price : $296,408

Annual Gross Revenue : $242,064

Annual Net Profit : $118,560

Profit Multiple : x2.50

Inventory Value: -

R-Index : 145

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From the Broker

This listing is for an infrastructure as a service (IaaS) business created in October 2016 in the hosting niche. It has around 8,000 monthly recurring active members and a very good diversity of traffic sources with only about 12% coming from organic search and the remaining referral or direct. No technical experience is required, as the business has a 24×7 technical team that is in charge of maintaining the servers and providing support to customers via the ticketing system.

The services that are being offered are subscription based, the standard is a monthly service that automatically renews. Additionally, common in this market are quarterly, semiannual, and annual subscriptions. The new Buyer will have the ability to provide clients with pricing structures that reward them, either with lower pricing or with an added bonus for a larger upfront financial commitment.

Regarding traffic, initially, the Seller posted ads on forums that ranked highly on search engines. Shortly after that, the singular method of obtaining new clients has been through organic growth: word-of-mouth, client referrals, inbound sales inquiries, and converting those who sign up for the newsletter into paying clients.

While there are no other employees, technical support is primarily managed by an outsourced company remotely located in India. They are responsible for providing 24x7x365 technical support staffing and handling the inbound tickets (support, presale, sale, billing). There is also an industry-experienced and English-speaking individual that periodically provides technical support remotely from the United Kingdom. The Buyer could choose to retain this type support, forego it, or make such a decision at a later time.

There is an email list containing more than 10K unique email addresses. This email list is currently being monetized by providing clients with updates on service improvements, as well as sales specials. Most calendar holidays are utilized, as they are proven to be effective sales events.

The Seller also suggests the Buyer solicit feedback from the existing client base to receive guidance on what services could be added, or changes could be made. Those suggestions could be weighed against the value and potential they could provide the Buyer. Historically, contact with clientele has equated to an increase in revenue.

* There is roughly an even number of US and Chinese based customers. The Seller does not speak or read Chinese, and this happened organically through Chinese sites picking up the offer. The Buyer does not need to speak or read Chinese to run this business as all customer communication and customer support is done in English.

Site Highlights

Average Monthly Revenue: $20,172

Average Monthly Expenses: $10,292

Average Monthly Net Profit: $9,880

* We are using the last 12 months to determine the averages.

Assets Included in Sale

Included in the sale of this business:

  • 1 Domain
  • Entire business including the 9700+ client list in database
  • Website Design/Content (including source code)
  • Login Details to the Backend Dashboard
  • Login Details to all vendors
  • All Administrative Details for Running the business
  • Communication Details to interact with support staff

Work/Skills Required

The Seller spends about 15 hours/week

Daily: The Seller will log in to their dashboard to review generated revenue, glance over the support tickets of the day, and address any that may have perhaps been escalated to them by the support team for their personal feedback.  The Seller will also quickly glance over any conversation that was had in the group Skype chat that the technical support team communicates in. A couple times a week, the Seller will conduct the bookkeeping and ensure any upcoming bills are paid.  With there being relatively few vendors to pay, this task does not require a lot of time or effort.

Weekly/bi-weekly: The Seller will create a sales promotion that they’ll provide to the existing client base via email.  Such emails are sometimes sent with a graphical banner, other times not. Sometimes these specials are newly made, but other times the Seller may save time by reintroducing a past popular special. A new special requires creation of a new package in in the dashboard, whereas, utilizing an existing or former special just requires reactivation of that particular plan in the dashboard.

Reason for Sale

The Seller is looking to sell this business for a marriage and for a down payment for a house.

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Listed By

Sale Pending: No

First Seen: Mon, Apr 30th 2018

Last Updated: Fri, Aug 24th 2018

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