Web Hosting Resource Kit – Editor’s Opinion 9/2004

Recently I started looking into buying some existing websites to add more streams of income to my business. I was not necessarily looking for websites related to web hosting – rather some generic websites which could create income in general.

However – during my research I found several web hosting businesses and websites for sale. The owners always seemed to struggle to find the right buyer or even to determine a fair price for their existing business. One sale I have seen was for a business that already generated $60,000 per year. That is quite impressive and I wonder how the host would find a buyer for it. Most forum advertisings on the Internet rather seem to cater to low price sales.

How would I sell such a business at that level? Well, honestly I can say – I don’t know. Personally I know from experience that it is easier to sell a business locally if you have many local ties (=local clients). Business brokers and banks often can help you to find an investor. But if you do not find a buyer you will need to turn to the Internet. And then there is the beauty of forums and service providers who help you selling your business. But will this really satisfy the seller? I am not too sure about it.

I bought 2 websites and domain names in the last 2 weeks just to find out that they were template based from a very cheap source. It was not critical to me – I expected templates. But it showed me a whole market of folks trying to sell turnkey websites. Offers were mushrooming all over the place and I consider this makret saturated pretty soon. Anyway – it shows that the buyer of existing websites or businesses needs to be very cautious before spending money.

I spend $65.00 on 2 sites and I have a plan. You might spend $6,000 and be ripped off. Spend your money wisely.

Until the next time ….

Christoph
Owner Webhostingresourcekit.com