I have been offered a good amount for one of my reseller business. Now, though price seems tempting, but i am lost at how to evaluate worth of my reseller business. Its been up for close to one year now and is a free web hosting business. There are close to 75 clients and adsense revenue is meagre. I am paying $40/mth average to keep it live and adsense returns average $10/mth.

How much would be my reseller business worth? What is the offer price i should go for? I mean realistic offer price.

It's very difficult to evalute a hosting business without knowing the domain name and taking a look at the design to see if it needs improving.

chris

Obviously the value of the business is what the top bidder is willing to pay. I would pay a max of 3 months income for the business if it is loosing money plus the value of the domain, design, and any software included. So I am saying $30 + domainvalue + designe value + value of included software

There's an appraisal forum on Sitepoint (and probably some other sites as well). People in there seem to know how to evaluate this stuff.

What criteria are taking into consideration while domain evaluation? Does anybody know about it?

If you post a link to your website I'm sure it will help determine its value as well.

Can you post a link?

Yes if you post a link I may evaluate it for you. If you do not feel confirtable as if people do a google search seeing your sellign it and it makes them nevous you can pm me and I'll evaluate it.

I think that not business worth it, but customers database is.

Chances are someone, who's ALREADY in the hosting biz would give you a good price. That also being MOSTLY for the customers, because that's what buyers really want. They don't care too much about the actual website.

However, since your hosting free clients, I doubt your going to get a good offer.

A good example in our industry of domain value factoring in heavily is the Interland purchase of Web.com for $4.4MM in 2005. Web.com only added $75,000 in MRR and 9,000 clients for a valuation of 58.6 months. (yes 58.6) The going market at the time for larger hosts was at max 18 months. We know now that soon after, Interland changed their name to Web.com.

75 clients is a small number and that too when you only have free clients.

I would sell the accounts. Price per account and then multiply that on the number of the customers. I believe that is the most honest way here.

A rule of thumb I've heard is 1x the last 12 months revenue. That is if the business is in good shape and has growth prospects. So if you're only bringing in $10/month, the best case scenario would suggest $120 for the clients (since they aren't paying anything).

That's completely off-the-cuff. If you want a more accurate evaluation, then we'll need to see the domain name and website.

Good luck

It is hard to eveluate but you can try by multiplying your profit times 12.