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That is very generous I must admit considering none of hosts I was involved with didn't make $5k pure profit within first 8 months, those weren't LEB hosts(real-world experience). Some don't even break within first 6 months. Hence, I call bullshit, unless you can prove me otherwise(your case - shardhost.com was registered half a year ago, you must be doing $5k on LEBs until now).
This include most LEB hosts :P
True but luckily he's at lowendtalk board :P
Naah, you're most likely correct. It's just funny to see how LEB hosts with few rented nodes pretend like they are worth of 500.000$ or more
Anyway, my personal opinion is that it's completely reasonable to ask at LEB/LET forum if anyone would be willing to get rid of client base for something like 5.000$. It's not like everyone here would invest fortune in own gear or have own gear at all. And I am pretty sure that some known fail hosts sold clients for much less money.
I am not selling so do not need to prove anything. Shardhost is a new brand non-trading.
Yeah, that's funny, I bet majority of them doesn't even make $500 per month, let alone $5000. If they were making $5000 a month they would have their own hardware, loads of IPs, professional design, you name it, as opposite to most of providers who replied here.
I call SOCIAL PROOF :P
Yeah I think Apollo15 seems to be sincere in his offer, $5000 is quite the sum to be honest especially for those kiddy/summer host it would definitely give them a good exit!..
Even too much for some. I basically pay 6-8 months worth of pure profit, 12 months in the best case, where $5k is the limit. I believe this is a fair offer. I don't want to overpay nor underpay - fair is fair.
yeah no doubt.. sounds logical to me not sure why so many people seem to be offend by your offer?
@apollo15, do us a favour, use your money to open a datacenter, then give free 32GB ram dedicated servers
But as discussed if this is being aimed at Summer Hosts they lose money rather than make profit I've heard. Hence, the sale is pointless as they don't get anything from it.
Would be nice but once again, I repeat, if I had money for a proper quality datacenter, I wouldn't be here in the first place. Besides that, do I look like a charity?
Well, I somehow believe someone will find himself in this offer. Even if not, no biggie, it was worth a try.
Well it does not have to be a summer host.. I recall Subigo selling his company at around the $5k mark and I think it was profitable, could be a lot of reason why a small company would want to sell, I mean it's obvious apollo15 is not looking to purchase a fortune 500 company or else I doubt he would be posting here on LET
Well, recentely I've got some information about some of the hosts from here, from what I know 5k is not that bad for them at all... lol.
Well, profit margins are low, true, however, I think you should look at this another way, like buying the customers instead. Pay per capita or something.
As I said, I wont be moving over, even if my host is failing. I bet many others are thinking the same, I do not want to be traded and others too, I prefer to make my own choice of host, and others too.
There were quite a few M&A I was a customer of in my past 8 years or so in the "fast lane" sort of speak, and I am almost sure they ended in a loss for both seller (unless there wasnt really something left to lose) and most importantly, the buyer.
I would advise against buying, but if you manage such a deal, I am curious about the outcome, how many customers stayed, of those how many agreed with the migration and how many reluctantly decided they would rather not be bothered to reinstall and all.
Then the costs with integration of the control panels, billing panels, migration of VMs and all that stuff.
Unless you have many-many customers willingly coming over, I consider this is not only a high price to pay, but even without paying anything will rather be a loss than a gain.
@Maounique
If I understand that a company that I am a customer of gets sold out (or sells me out as a client), I will run far far away and never come back
PS. I know that you were interested in the outcome of his venture, just thought i can jump inf rom a customers point of view
@Alex_LiquidHost
Exactly my thoughts, I am a customer at heart and always thinking from that point of view.
As such, I never understood ppl that stay to be sold like cattle, I am pretty sure most such ventures end up in disaster UNLESS, the brand stays and only integrated over a long period of time, including the ppl that worked there, etc.
A one man show, unless hostigation or something and the owner stays on to help a long time, will have very little chances to maintain customers.
No:
1. Change of company name (brand);
2. Change of billing panel (integration includes probably change of address, change of username and pass)
3. Change of control panel (same as above)
4. Change of support scheme ppl are accustomed to;
5. Change of plans, most of the time and/or prices;
6. Change of IP;
7. Change of location;
8. Possible problems at migration, might lead to data loss even and/or downtime...
That is besides the subjective problems (ppl dont like to be sold, they are customers, not cattle, the owner has to answer to them if there is a problem, not them to pay for his/her mistakes).
This can all be done of course, supposing you're a real company doing the buying and can integrate everything into your existing systems & infrastructure seamlessly. You can even offer existing customers enhanced / better service levels etc - along with not changing anything they are used to or ip and so on.
That would require at the bare minimum possibly the commodity most important to a customer, their ip. And any company that has their own ip space won't sell for $5000. You may be able to get a fire sale at $50,000 but that's it.
Buying "clients" only from someone with a few dedicated oVH or Hetzner boxes looking to get out due to ipv4 increase is non sensical, you'd be lucky to have any of them stay once you're forcing them to move address space.
5k.... That's kinda insulting, what do you think we gross?
Maybe if they have a few hundred customers, but even LEB hosts have tons of high end vps customers embedded in those few hundred customers.
Any of us who own IP space are worth many times that much. I think a /24 is now going for 20K on the market.
Not yet - current market price is $11-14/ip. (At most $3600/24)
I am not sure about hosting business, but what I learned is 1% rule. The target income for an average investment instrument is 1% profit per month. So if I earn $500 per month, selling for $5,000 is very much under-priced in my opinion. That would be %10 monthly return, I will just hold on to it.
Yes, I agree. I would also be insulted if someone wanted to underpay my company.
Of course IP ranges alone are worth more than that, I didn't want to buy IPs in the first place. And hosts with their own hardware and IPs are out of this budget, it's been made clear from the beginning.
Once everyone is done with the chest thumping, take a deep breath and take this for what it is, a targeted offer.
You're saying if you earn $500/m you should sell for $50,000? That's not going to happen, anything in $5-10k is reasonable.
Many hosts here don't have any kind of infrastructure, they just rent a server and IPs and start selling. They pay their servers and IPs from monthly income and what's left goes directly to their pocket. I'm sure those hosts would have no problems selling for $5k or less and those hosts are targeted with this offer (and it's quite reasonable IMHO).
I don't see why some people are offended.
Yes, thats why I said I'm not sure about hosting business. Just investment in general
To be honest because some people are on here for the community and to advertise, Does that mean all the LEB/LET hosts and not professional ? Im sure there are some hosts on here that do better then (professional) hosts, There are some that are not making profit im sure, but for the most part they are. Nothing against you just giving my input but this small offer would be good for some small hosts.
No, I don't mean that. I'm here and I don't advertise because my company doesn't offer LEB prices - fair enough.
There are some very great hosts(Edis - a lot of unique locations, and BuyVM - for the innovation) around here. Those deserve a big thumbs up and I prefer them over any other highly priced provider.
@MonsteR yes of course, there are some in every aspect great hosts. But then there are also many LEB vps providers with full time job somehwere else or students which do this to earn something extra. This doesn't mean that they provide bad service just that they run smaller operation with smaller profit. Nothing bad with that of course but through time some of them get tired of sleepless nights for small margins with looking to get out and that's opportunity for @apollo15 and others with similar offer.
@Spirit Yes that is pretty much what I was saying.
I am wondering if "James" already sent sale offer
/joking
This.
He wants to buy summerhosts, what is wrong with that? If your company is worth more just dont reply.