Web Hosting / Reseller ADSL client base [S]

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Flidiot

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Location
Cape Town
Item name: Web Hosting / Reseller ADSL client base
Age and condition: 6 years - Small but great
Do you include packaging: Not Needed
Warranty: No
Reason for selling: See note below
Price: R17,500 neg
Negotiable: Yes - Slightly
Location: Cape Town based, national reach
Shipping or collection: Not needed

I have owned and managed an IT company since 2009, starting with Web hosting and ADSL services as a bit of a cash-cow. The company focus has shifted and I have personally left full-time employment to pursue new adventures, and all though that side of the business is turning a profit we are unable to provide service to these customers effectively anymore. I have two options - sell it on the cheap to a company which can look after them properly or hire/train. Second option is just not worth it.

Details of web hosting, domains and ADSL base sizes:
Hosting clients - 24
Domains - 62
ADSL/Bundles - 12

Estimated profit PA:
Hosting - R15,182.40
Domains - R519.32
ADSL/Bundles - R5,028.00

Estimated total profit per year with mirror of current infrastrucutre: R20,729.72

Selling price is derived from 1 year of profit from customers minus a bit as a "sweetener".

This deal is ideal for someone starting a business and wanting to branch into hosting as a value-added service or an existing company which could absorb the client base into their own.

Deal includes clients, ADSL reseller account as a whole and assistance in setting up your cPanel server or transferring accounts to existing server. The deal does not include the current server as it will be retained for internal use.

Very low risk investment - as most of these clients have been with us since the very beginning and are extremely loyal, hassle-free and require very little support. Just the occasional assist with setting up mail accounts on a new PC, password resets etc. You would also start to see a return on investment quite quickly. Profit would obviously also be higher if you already own/lease infrastructure or if you are setting up a new server, as you would not need as much resources as we currently allocate to our servers.

Deal is also very straightforward, we would both sign a binding document transferring responsibility to buyer, noting cost, agreement dates etc. as well as the agreed requirements between buyer/seller etc. We will notify customers of the changes and nce payment is received, transfer can begin. We will move at your pace; no waiting on us etc.

PM me with your offer if you are interested and I will supply any additional information which you may require as well as a spreadsheet with a breakdown of current packages and associated costs as well as a breakdown of our current expenses for infrastructure etc. so that you have a clear view of everything as it is now.
 
I'm a bit interested,

What stops the clients to move to different ISP just because they were loyal to you, and after the sale they would look for something else?

(Or should we discuss on PM)
 
I actually feel that this is a question which should be answered for public view - quite a good question.

Quite honestly, it is easy for them to move on afterwards. However, all of them have already been informed of the changes to the company and were given the option to leave based on the idea of possibly being under new management or ultimately new ownership. I think two left in total (obviously they have been excluded from the above info).

Quite honestly, people go wherever they get good service. Most of these customers were "hand-me-downs" from a larger company, they didn't even bat an eye - just changed their payment details and carried on as per usual.

So to answer your question, the level of service provided to these clients is what would stop them from moving to a different ISP after the sale concludes.
 
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