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  1. #1
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    Selling my Heart Internet Reseller web hosting business

    I have been a Heart Internet reseller for well over 15 years. I have 90+ hosted clients which, along with the domain names renewals, generates around 4800 profit per year. In addition, many of the hosted clients require ongoing website development work plus I have been getting fairly regular commissions for website development, although this has become less often over these last years as I have not been actively promoting my services. I am now considering selling my business which would be of particular interest to other Heart Internet resellers as the moving of the account from one to the other would be fairly painless with very little, if any, disruption to the clients' web services.
    Please respond with an offer - any serious offers will be considered.

  2. #2
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    how much would you be thinking?

  3. #3
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    I'm open to offers

    Quote Originally Posted by ninejoe View Post
    how much would you be thinking?
    It is presently listed with an online agent for 25,000 but I am open to offers.

  4. #4
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    Quote Originally Posted by webbo880 View Post
    It is presently listed with an online agent for 25,000 but I am open to offers.
    You're expecting someone to pay 25k for a business making <5k/year profit?
    Freethought Internet
    Freethought Internet Limited registered in London No. 5862996. Registered office: The Old Church Hall, 2A Cromwell Street, Lincoln, LN2 5LP. VAT number GB 987 0952 66.

  5. #5
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    And a business based on re-selling someone else's products at that! Who porbably has very little in the way of customer tie ins!

  6. #6
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    Point taken

    Quote Originally Posted by Joe-HT View Post
    And a business based on re-selling someone else's products at that! Who porbably has very little in the way of customer tie ins!
    I can see your point regarding my valuation against the yearly profit. If it was based only on the profit from the web hosting then I could reasonably expect a valuation of 3 to 5 times the yearly profit, i.e 15k to 25k, although I would honestly not expect anyone to offer 5 times the yearly profit. However, it is not only web hosting service that I provide but also website design and development and, of course, ongoing website updates and maintenance. This work, with virtually no effort made in marketing, can bring in a profit of anywhere between 12k and 15k p.a. In the past few years I have taken my foot off the pedal as far a promoting my business but, locally, it has quite a strong brand. Which is why I think this business would be a more viable option for a developer based in the North West as I have found there is no doubt that marketing and networking locally generates many valuable leads and referrals and can easily generate profits of 25k to 40k as it has done in the past.
    Regarding your point in re-selling someone else's products - profit is profit no-matter how it is generated.

  7. #7
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    That's a far dream!

    would only consider buying with a payment based on actual yearly profits and a way smaller upfront cost.

    do you have a website reselling? what is your google ranking?

  8. #8
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    Not too far I hope... read on..

    Quote Originally Posted by ninejoe View Post
    That's a far dream!

    would only consider buying with a payment based on actual yearly profits and a way smaller upfront cost.

    do you have a website reselling? what is your google ranking?

    Genarally, as I'm sure you're already aware, it is generally calculated that the value of a small business is 3, 4 or up to 5 times the net profit. So if I was calculating the value of my business based ONLY on the profit from web hosting and domain renewals it would be 15k, 20k or 25k. Having said that, though, I would not expect anyone to pay 25k... more towards the 15k. My business, though, is not only web hosting but also website design and development and also ongoing website management. For the past few years I have done absolutlely nothing in terms of promotoing my business but nevertheless it still generates business which, on avarage, amounts to anything between 12k and 18k p.a. Locally, my business is quite well known and has a good reputation. When I was actively marketing and networking it was generating 25 to 40k+ p.a. which, I am confident would be relatively easy to achieve once again.
    Yes, I have a website which displays my various hosting packages but I do not sell directly on the site itself.
    On the point of selling someone elses products, profit is profit no matter how it is made.

  9. #9
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    Quote Originally Posted by webbo880 View Post
    If it was based only on the profit from the web hosting then I could reasonably expect a valuation of 3 to 5 times the yearly profit
    Acquirers dont pay multiples on a tiny clientbase - 1x or less is common (and significantly less if it's an affiliate rather than reseller or supplier relationship)

    Quote Originally Posted by webbo880 View Post
    However, it is not only web hosting service that I provide but also website design and development and, of course, ongoing website updates and maintenance.
    Unless you have a confirmed forward-order-book for design work, at sensible prices at which the new designer can make a margin on, then there is little to no value in that side of the organisation

    Based on the description, without doing any level of investigation/analysis/duedil/etc I'd be expecting you to get between 2500 and 5000 for it - "HI" hosted clients can be acquired for ~30 each quite regularly

  10. #10
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    Quote Originally Posted by webbo880 View Post
    On the point of selling someone elses products, profit is profit no matter how it is made.
    Not really. The fact that you're a Heart Internet reseller means that you are tied into Heart Internet's product range and systems with little to no flexibility.
    This can be quite limiting for the acquiring company, so unless they are also a Heart Internet reseller it's going to mean a time consuming and disruptive migration to their own platform.

    There is nothing wrong with reselling, but it does affect who might be interested in buying the business and what they are willing to pay.
    Freethought Internet
    Freethought Internet Limited registered in London No. 5862996. Registered office: The Old Church Hall, 2A Cromwell Street, Lincoln, LN2 5LP. VAT number GB 987 0952 66.

  11. #11
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    Quote Originally Posted by Ed-Freethought View Post
    Not really. The fact that you're a Heart Internet reseller means that you are tied into Heart Internet's product range and systems with little to no flexibility.
    But why? Do they use some type of custom panel to hosting clients? Aren't this clients hosted in a regular cPanel plan?

  12. #12
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    Quote Originally Posted by FloXera-Jose View Post
    But why? Do they use some type of custom panel to hosting clients? Aren't this clients hosted in a regular cPanel plan?
    Yes, Heart Internet use their own custom control panel called ExtendCP. They also have their own billing platform called HostPay, so with Heart Internet you normally find that their resellers are pretty well locked in.
    Freethought Internet
    Freethought Internet Limited registered in London No. 5862996. Registered office: The Old Church Hall, 2A Cromwell Street, Lincoln, LN2 5LP. VAT number GB 987 0952 66.

  13. #13
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    i can offer you 10$ for it

  14. #14
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    Is this business still for sale?
    I might be interested - please let me know.
    Thanks.

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