mo. Hosting?

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Oct 052010

Internet Business Guide Review

What is the difference between $70/mo. hosting and $10/mo. hosting? $60!

Hosting is a commodity; but a commodity that has firmed up in the past two years. A few years back there were thousands of hosting companies; many offering free hosting. (They made their money off up-selling and advertising income.)

With the decline of hosting offers, and market stability, you can expect to see an uptick in the monthly cost of hosting.

Although there is really little difference in the $70/mo. and $10.mo. hosting there is a big difference between $70/mo. and $200/mo. hosting. The greatest part of this difference is “bandwidth”. Oversold bandwidth leads to a poor user experience as they wait for pages to load.

The online business for sale below appears to have stronger than average customer loyalty. It also appears to have maintained a balanced bandwidth. This online business for sale is “subscription” based, and as such you will have a good opportunity to model out your future income. You would use metrics such as “subscriber life” (i.e., the average revenue per customer over the lifetime of the account); churn or turnover rate (the percentage of adds and drops of customers per month stated as an annualized number); conversion rate (the expense to obtain a new customer).

In the past I have recommended that first time online business buyers do not burden their learning curve with a Web Services business. In other words I ask the client to answer the question, “Who is the customer”? If the customer is another online business owner I had recommended they not consider it as an online business for sale that they should consider. That said, this online business for sale states 2 employees. It would seem that these two employees are the tech support team. If so, a new owner of this online business for sale might not need a depth of knowledge.

Overview

Online Business For Sale - Managed Hosting Related Internet Business Guide Listing #8018
Status:	Available
Internet Business Type:	NAICS 541511
Internet Business Category:	Web Services
Internet Business Name:	NDA
Internet Business Web Site:	NDA
Asking Price:	$190,000
Down Payment:	$ Negotiable
Gross Sales:	$196,455
Cash Flow (or SDE):	$108,889
Asking Price As Multiple of Cash Flow	2.x
Year Established:	1994
FF&E: (included in the asking price)	$10,000
Inventory:	$ N/A
Employees:	2
Absentee Owner:	No

Have you identified the category of Internet Business acquisition that you desire, yet have not located it? Are you uncertain of the Internet Business that is your ideal acquisition candidate? Then you should consider an Acquisition Search!

Business Summary

Well established online business for sale with great customer loyalty. Established in 1994, they have grown their

customer base to over 200 loyal customers. Services provided include dedicated server management, email filtering, web hosting, ecommerce consulting install, and modify shopping carts, general internet consulting, domain registration and renewal, domain name service, archiving of data, digital certificates, and email lists.

The competitive advantage of this online business for sale is their responsiveness and their individual attention to their client’s needs, unlike many of their competitors. They have seen consistent year over year sales with little variation.

About half of their gross sales comes from hosting and dedicated server rental. They have consistent monthly recurring revenue and clean financial records. This company is relocatable.

Facilities: Internet Home Business Opportunity

Competition: Their competitive advantage is their responsiveness to a loyal customer base. They are currently not using any forms of marketing and get most new business through referrals.

Financing: Negotiable – SBA Pre-Qualified

Training: 30 days on-site training, with phone consultation as needed. This company is best suited for an owner/operator who has LAMP knowledge (Linux, Apache, MySQL, PHP)

Reason Selling: Seller has other interests.

Listed By: Broker

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Recommended Reading:

Before you invest your savings to buy an online business shouldn’t you first learn how to buy the right one? Get 5 Answers You Want To Know Before Making An Offer.

Need more? Then the Buyer Advantage Service from Internet Business Guide is for you!

A recent client said, 12 months ago I was sitting exactly where you are now so I know how that feels! Today I am sitting very happily with my internet business which delivering my material needs and the ultimate in freedom to match. Don’s assistance was a big factor in getting me to this place.

Another recent client said, By the way Buckley says hi and that the 2 businesses he purchased thru you are doing just what you said and the 2 he bought on his own are not. Nice complement from Buckley. I think he is very astute and a very bright guy.

To obtain Internet Business Profiles please complete your Confidentiality Agreement; if it is not already on file with the Internet Business Guide.

For information on this Online Business For Sale, or more than 400 additional Online Business For Sale, contact Internet Business Broker Don Janke. With over 20 years Online/Internet business experience I can guide you to your ideal acquisition to make money online!

5 Answers You Want To Know Before Making An Offer

1. Which Seller to buy from to get the best price to value.
2. What the real visitor count is to a web site.
3. What to say to guarantee that the Seller will carry back a note.
4. Which one website has the absolute best Internet businesses for sale. (not Internet Business Guide
5. An initial “due diligence” review of a website for sale of your choosing. Reserve Now!

Online Business For Sale | Off Market
How to use this information: You have been thinking about buying or starting your best home based online business? You have been thinking about make money online ways working at home? You will find below many home based business opportunity ideas. Use the information below to see what others have done to make money from home. The owners of the Internet Business Opportunities below are, or were, selling their successful business. Review what kind of business opportunity they started to gain insight into what work at home business idea might work for you to Make Money Online!

Related Listings:

Online Business For Sale - Managed Hosting

Before you invest your savings to buy an online business shouldn’t you first learn how to buy the right one? Get 5 Answers You Want To Know Before Making An Offer.

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