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WebHost Appraisal
Old 08-03-2005, 08:14 PM WebHost Appraisal
thecodman's Avatar
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Location: CT, USA
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 else could put their evaluations and credentials I would be extremely appreciative.

Thanks.
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Old 08-04-2005, 08:00 AM
uphosted's Avatar
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It's not enough information to determine the price. You should also tell what allocations you offer with your hosting packages and how many customers you host on each of them. I'm sure you understand that 100 customers, paying $10 monthly for a 10GB bandwidth package, are worth much more than 1000, paying $1 monthly for a 100GB package

Hosting company is usually worth it's one year revenue or less, however, if your host is well known, has a good reputation, nice website, you might get a much better deal.
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Old 08-04-2005, 08:05 AM
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I agree with uphosted fort he most part. Though 12 months may be an overshot unless you are continually receiving new signups and as he stated if you were looking to sell it would matter what kind of plans your customers are on. For Legal purposes I would say that 12 months would be a fair estimate. so $2,400
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Old 08-04-2005, 10:14 AM
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There were 43 accounts total spread throughout five different plans as follows. Plan 1 however is the most popular. Hopefully this will help in your estimates of value.

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

Last edited by thecodman : 08-04-2005 at 10:17 AM.
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Old 08-04-2005, 10:50 AM
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Maybe I am missing something here but you stated $200 profits. You now say you had 43 accounts on bandwidth is being oversold and the most popular plan is $2/month how do you pay for support and your server. Perhaps I am missing something and you can clear it up.
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Old 08-04-2005, 11:06 AM
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I see where your confusion is. I only listed the monthly accounts. Let me see if I can clear this up for you. The 43 accounts are only the monthly paying accounts. They bring in exactly $258 in profits per month. In addition to these accounts there are 3-month, 6-month, and annual accounts which cover the cost of the server.
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Old 08-04-2005, 11:10 AM
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I may be confused on how you calulate profits? I know that I could not sell a web hosting plan for $2 and make a profit from it as this may be where my confusion is coming from. Did you mean to say that's $258 in Revenue?

Just for processing an order through paypal we pay better then most and it's still 2.2% + $0.30 . So that really only leave $1.65

Last edited by easdesign.com : 08-04-2005 at 11:14 AM.
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