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WhiteLabelhosting is saying bye bye
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WhiteLabelhosting is saying bye bye

netomxnetomx Moderator, Veteran
edited April 2012 in General

I am NOT the owner of WLH, I received this email:

Due to unforseeable circumstances, I've had to make the decision to close WhiteLabelHosting down - I've had a lot of stress dealing with problems in my own life. For the past few months I haven't had the time to dedicate my time into growing the company, I knew the repercussions of this (lack of sales, therfor lack of profit) but I did not mind paying the bills with money from other projects so long as my customers remained online.

 

Unfortunately however, while looking at the situation a little further over the past month, I've decided that the best solution is to close down WhiteLabelHosting - even if I kept the servers online with funding from other projects it would not improve current customer satisfaction, we have barely enough support members with the correct level of access to fix ongoing client problems, and hiring is not an option at this point, with myself having almost no time to answer tickets and put work into sales, customer experience is unfortunately falling at a dramatic rate.

 

With this rather delayed announcement, I would like to inform all clients that you have approximately 5-30 days to backup your data and transfer (I urge that you do this sooner rather than later, I cannot make the guaruntee that the servers will stay online for the entire 30 day period, thus the early forcast of 5 days at least).

 

As for Seattle YEARLY CLIENTS you have absolutely nothing to worry about, I am in no way trying to run with money (the opposite of that actually) and I am not profiting from this process at all, therefor I will keep my promise of providing yearly clients with the year of service that they paid for. One thing I can however state is that you will no doubt experience SLOW responses to all tickets.

 

I'll be leaving the WhiteLabelHosting client area online, so yearly clients will still have access to billing, support, and anything else.

 

For anyone interested, our assets will be sold - we have a total of 7 servers in the Netherlands that will not be needed, we have extreme levels of discounts allowing us to get a very good price for these servers, so I would love to hold onto them and resell them to someone who can put them to use. (the discount allows you to get 350$+ servers for that of 150-200$ with extras such as free Windows licensing and cheap upgrades)

 

The design of our website is unique, and comes with our client area WHMCS integration as well as our Twitter integration ( see  http://twitter.com/#!/whitelabelhost ) - these will be sold to anyone interested.

 

Our Kentucky server is also a steal, the provider is probably one of the best US providers I have worked with thus far - they're named Ionity and only opened to public sales a month or so ago, before then I purchased a server privately from them - the price of the server is 300$/month and comes with some of the best service, support, and uptime I have ever experienced. (e3-1240/16GB/4x1tb in RAID10 1GBPS level3/cogent/HE 2 backup bandwidth providers + 30TB of Bandwidth with free incoming)

 

For any questions pertaining to buying any of WhiteLabelHosting's assets - please contact me via ticket with the tags [ASSET]. I doubt anyone will want to purchase the ENTIRE company due to its unfortunate state, but if you are interested please open a ticket as instructed above.

 

All profits from our assets being sold will be put towards the ongoing payment of the servers that need to remain online, this includes our Yearly server, webserver & domain, and anything else that must stay online to provide customers with what they paid for. I will do my personal best to keep the Netherlands set of servers online for another month, but I cannot make any guaruntees.

 

PLEASE TAKE YOUR BACKUPS! - There is nothing more frustrating than not having your data in a worst case scenario.

 

As one last comment, anyone on the PERSONALNY1 (which is a very minor amount of long-term customers which we dedicated resources to) will have another 30 days to get their data, this is guarunteed because the server is also used for our Webserver and is priority for staying online.

 

Server Status :

 

Netherlands Servers - 5-30 days until cancellation.

New York - 30 days until cancellation (recently renewed).

Seattle - At least 7 months from this emailing date.

Kentucky - Estimated 15 days.

 

Thanks for everyones time here at WhiteLabelHosting and I apologize for this unforeseen action - I wish I could have kept things going but the customer service was deteriorating and was only set to get worse.

 

WhiteLabelHosting.

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Comments

  • CloudxtnyHostCloudxtnyHost Member, Host Rep

    I've messaged you to see if we can offer a home to your Netherlands clients.

  • InfinityInfinity Member, Host Rep

    You? Last time I checked @netomx didn't own WLH.

  • @Infinity said: You? Last time I checked @netomx didn't own WLH.

    That...
    LOL

    Thanked by 1[Deleted User]
  • Rofl, this is a copy of the message sent out...

  • netomxnetomx Moderator, Veteran

    sorry, I thought I was clear. Let me edit.

  • CloudxtnyHostCloudxtnyHost Member, Host Rep

    Must less confusing now :) I've contacted them directly.

  • Sorry to hear about this mate.

  • Its nice to have a company actually say what's going on.

    I hope everything works out.

  • HC_RoHC_Ro Member
    edited April 2012

    Why not just sell the company as a whole, It seems like the existing assets would be completely devalued once the word gets out that the servers and clients need to leave.

    I dont mean this to sound arrogant, just curious. I recently saw the same effect with KristiHost, they sold to someone who immediately killed any brand value by 301 the domain to a terrible one, scrapping the site and moving it to theirs http://www.webhostmelbourne.com/.

    Full disclosure in the emails is upstanding though.

  • flyfly Member

    lol @ webhostmelbourne

    26 dollars for shared hosting what.

  • raindog308raindog308 Administrator, Veteran
    edited April 2012

    webhostmelbourne...

    A hosting web site that just dumps you straight into WHMCS...nice.

    image

  • @WhiteLabelHosting: So is there even any interest in selling the company? I'm not a slave trader, so we wouldn't be interested buying just your customers; it would have to be the whole thing.

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    @WhiteLabelHosting - So is Seattle pre-paid for a year or something? or did you get a steal on some colo?

    Just curious why you have 7 months still on it.

    Francisco

  • JacobJacob Member

    I am interested in any hardware you have colocated in the USA, Let me know specs and When originally purchased.

  • LESLES Member

    Very respectfully that you do not disappear like so many others!

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    Well that's good :)

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    Man, $4000/m.

    All of BuyVM doesn't even cost that much.

    Francisco

  • @Francisco said: All of BuyVM doesn't even cost that much.

    rented gear, so overpriced

  • @Francisco said: Man, $4000/m.

    All of BuyVM doesn't even cost that much.

    Francisco

    Yeah, but how much do you spend to build a single server? It's all relative.

  • CloudxtnyHostCloudxtnyHost Member, Host Rep

    Francisco, you guys must have some cheap ass gig-e lines then!

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    @httpzoom said: Francisco, you guys must have some cheap ass gig-e lines then!

    We pay $3400/m for our 2 racks and 2Gbit unmetered.

    @subigo - Sure, but we own those out right :)

    Francisco

  • CloudxtnyHostCloudxtnyHost Member, Host Rep
    edited April 2012

    Thats damn good pricing if its dedicated 2Gbit on a good mix.

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    @httpzoom said: Thats damn good pricing if its dedicated 2Gbit on a good mix.

    it's dedicated and it's HE/nLayer/GBLX.

    Lets not side track things.

    @whitelabelhosting - Have you found some decent companies to recommend to people at least?

    Francisco

  • CloudxtnyHostCloudxtnyHost Member, Host Rep

    @Francisco he's not replied back to emails yet. We may be able to purchase the company depending on what is left.

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    @httpzoom said: @Francisco he's not replied back to emails yet. We may be able to purchase the company depending on what is left.

    I'm not sure why people are always in a rush to buy brands that are on their death beds, that only seems to work for Rus and it's always "You get a % of the profits the left over clients bring in for 10 months" - he's never out of pocket for anything he buys.

    It was the same with hostrail. There was 6 people all wanting to buy it but 'required all customers be OK with a 300% increase in price and they all must stay on with the company'. Well shit, if everyone accepted that, Constantinos would have continued the brand.

    Francisco

  • CloudxtnyHostCloudxtnyHost Member, Host Rep
    edited April 2012

    Francisco,

    As always with deals like this we analyse what is going on, how fast we can transfer people onto our own infrastructure and what the perceived drop off rate will be. The reason we'd analyse is there is no point buying something if we'd have to increase the customers pricing to keep it "doable".

    Once we've done that we then make an offer that's fair to both. This has been an extremely successful way of us 1) picking up new clients 2) helping clients out. Hey we are still around after a good few years so we must be doing something right! Does help that neither HTTP Simple nor HTTP Zoom is our main source of income so its always a little risk.

    We'd be buying the brand but retiring it.

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    @httpzoom said: We'd be buying the brand but retiring it.

    Yep, literally just the customers would be kept and migrated/merged over :) I fully get it, just trying to make sense of it.

    Francisco

  • CloudxtnyHostCloudxtnyHost Member, Host Rep

    I think the difference is we do this with the customers in full knowledge of what we are doing and they have the chance before we do anything to basically say "do not pass move me, delete my details".

    We also provide a fair price to the owner of the "exiting" business.

    Experience is really the key to running a successful business!

  • Didn't he have about 400 openvz clients, of which most were on $20/year plans (40 per node)? I think he had 10 nodes total and it looks like he's getting rid of at least 5 nodes. So if that leaves 5 nodes hosting the yearly clients (200), that's only about $300/month (before costs). If you can pay for 5 nodes with just $300, and still make a profit, you're a genius. Not to mention that a majority of those clients have probably already moved along or will definitely not renew.

    There's a reason he sent out a "going out of business" email instead of selling.

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