Right time to sell reseller hosting?

B

bandboy

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One of my friends have been running reseller web hosting for few months and he wanted to sell it off. But he is confused as to when to sell the reseller hosting so that he makes more than he would otherwise? Is there some particular time, like having said no. of clients or say unique visitors or something else, that spruce up the price of business?

What in your view is the right time to sell reseller hosting?
 
Well I can't say the best season is summmer :p I will say though, there isn't really any best time as far as I can tell. It's just about finding the right buyer, who is REALLY in need of clients. Depending on what amount of resources they use up, how many clients and the system used (cpanl, plesk etc..) That all will determine the price for it. There is no harm in saying you want to sell and just not selling, if you don't find a good offer for it. You can try again later on always ;)
 
The summers tend to be a little more lean, but even then there are plenty of exceptions to be found out there. No season beats the best planning and even then things can go wrong and get a little tough.
 
Nether have i. :(

I think the best time is around the school holidays, since lots of kids decide its time to jump into the web hosting industry. It might sound nasty, but it's true.
 
Jamson said:
Nether have i. :(

I think the best time is around the school holidays, since lots of kids decide its time to jump into the web hosting industry. It might sound nasty, but it's true.
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A bit of an ignorant comment to make that has no logic. How can a bunch of kids afford to buy a company?

And secondly, if the owner cares for his clients, he's going to do much better than to sell to a bunch of kids that are guaranteed to crash and burn when school starts. :rolleyes2
 
stealthdevil said:
A bit of an ignorant comment to make that has no logic. How can a bunch of kids afford to buy a company?

And secondly, if the owner cares for his clients, he's going to do much better than to sell to a bunch of kids that are guaranteed to crash and burn when school starts. :rolleyes2
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What percentage of webhosts are run buy kids? I think we'd all be surprised. There are tons of kids running websites and buying them.

The post has merit, and have seen it first hand literally 100's of times.
 
Keithb said:
What percentage of webhosts are run buy kids? I think we'd all be surprised. There are tons of kids running websites and buying them.

The post has merit, and have seen it first hand literally 100's of times.
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The guy is suggesting to sell the business to kids that have just finished school for the summer. How can you encourage a company to sell to a bunch of kids that are only going to be around in the summer and then throw away the business when school starts?

The age of those kids also means they have very limited liability.. They can do practically anything and not worry about the consequences. If you want your business to be with people like that, then that's your decision.. But nobody with some decent sense will sell a company to kids that will eventually close it down in a couple of months time.
 
Jamson said:
Nether have i. :(

I think the best time is around the school holidays, since lots of kids decide its time to jump into the web hosting industry. It might sound nasty, but it's true.
Click to expand...
And how many kids can actually afford to buy an exisisting webhosting company?

Starting one up is a different because there are some not all that are very naive and just think "Right Domain Name $7 bucks, $45 per month server from ...... or $10 cheap reseller, PayPal Business Account (If that)"

And by their 16th birthday they want to explore life more and eventually shut down.
 
Marks said:
And how many kids can actually afford to buy an exisisting webhosting company?
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I think it depends on the definition of a webhosting company. My personal oppinion of a company is one that brings in cash (enough to pay the bills and make a living) and is registered/pays tax etc... However, I do see companies for sale with just 3 clients making just a few $$ a month. Those smaller sized "companies" could be purchased and sold quite a few times.
 
Matthew said:
I think it depends on the definition of a webhosting company. My personal oppinion of a company is one that brings in cash (enough to pay the bills and make a living) and is registered/pays tax etc... However, I do see companies for sale with just 3 clients making just a few $$ a month. Those smaller sized "companies" could be purchased and sold quite a few times.
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Exactly. And a reseller account is not a company in any case.
 
A few clients of mine when I was in the hosting business ran succesful hosting businesses from our reseller plans. Some just prefer not to have the hassle of managing servers etc... so they can concentrate on supporting clients and growing their business. However, most of the reseller plans were for people wanting to host multiple domains of their own or friends.
 
I have been in the web hosting business for almost 2 years. It is hard even with has much experience I have as a company. Its even harder for new company's to start with out millions of $$ in advertising budget. Best bet is to join an established webhost.
 
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I tend to believe the best time to sell a hosting company is early fall or right after the new year. The early winter months are usually harder times for everyone due the holidays fast approaching and then in spring and summer most people are looking to spend their time outdoors and not at the computer.

This is what I have seen from my experiences.
 
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