WebHost Appraisal

  • thecodman
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  • Loc: CT, USA

Post 3+ Months Ago

Please provide your appraisal as to what you think a webhost that meets the following specs is worth.

It included the following:
Over $200 profit each month on a range of shared & reseller accounts
All accounts are hosted on one server paid monthly which is almost entirely managed (all updates are done and most problems resolved by company from whom the server is purchased from)
sale includes a domain name
sale includes phpunlimitedchat script
sale includes whmap license
sale includes complete website
sale includes company portfolio site
sale includes company portfolio domain name
host continues to thrive with multiple signups weekly
all clients pay via mail or paypal subscriptions

I'm looking to determine what the fair market value of a webhost that meets these specifications would be worth.

I may be using this to help show the value of a host in court so if anyone could put their evaluations and credentials I would be extremely appreciative.

Thanks.
  • Uncensored-Hosting
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  • Loc: Los Angeles

Post 3+ Months Ago

Before I offer an opinion I would need to know the breakdown of accounts? I think it is important to understand and/or know how sound the business model is? $200/mo. profit on the server means more when the same are not oversold. However $200.00 profit on server that has oversold it's bandwidth and diskspace space allocation three (3) or four (4) fold is an accident looking for a place to happen. Other useful data includes the hardware and network specifications? It's not necessary to name the DC but we do need to know if it's Tier1 or Cogent bandwidth?
  • thecodman
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  • Loc: CT, USA

Post 3+ Months Ago

There are 43 accounts total spread throughout five different plans as follows. Plan 1 however is the most popular.

Plan 1 500mb space 5gb bw $2/month
Plan 2 1gb space 10gb bw $3/month
Plan 3 5gb space 50gb bw $5/month
Plan 4 10gb space 100gb bw $8/month
Plan 5 25gb space 250gb bw $15/month

All accounts are located on a P4 2.8Ghz 512mb RAM Dedicated Server in the Bocacom Data Center.
  • Uncensored-Hosting
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  • Loc: Los Angeles

Post 3+ Months Ago

Based on the plans alone the potential for this server being oversold is extremely high. Again this type of business model will adversely affect the net worth of the company. Additionally the server will most likely require a minimum 512KB of additional RAM in order to have a shot in hell of sustaining these accounts. Nevertheless a full assessment will require:

- a breakdown of how many people are on each of these plans?
- the average load on the server and/or pasting the top output at peak times?
- knowing how many and which of these plans have reseller capability?
- the results of mysqladmin status?

Plan 1 & 2 are not so problematic and may be written off as a loss leader. Especially since there are more people on Plan 1. However the other plans seriously jeopardize a sustainable business model and may devalue the business.
  • eWebHost
  • Born
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  • eWebHost
  • Posts: 1

Post 3+ Months Ago

First, I suggest you review your business plan and make some adjustments to your prices. As mentioned above, plans 1 and 2 are fine.

Anyways, a hosting company normally sells for around 10-12 months of gross revenue.

eWebHost

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