Best way to sell hosting clients?

[LeanneMacco]

I'm thinking about selling the hosting side of my web design business but I'm not sure if it would be best to use another hosting companies affiliate scheme or sell the clients as a package.

Does anyone have experience of this? I probably have 60ish clients, some yearly some monthly.

This isn't a sales thread, just need some advice so I know my options.

 

[Leo-InstallingIT]

I think you would probably be best selling them to another web host.

That way both parties will be aware of the change and support your clients appropriately. Whether the sale involves an initial sum paid or a percentage of re-concurring revenue would be something to negotiate.

 

[Bart Simpson]

You should be better off selling it to a web hosting provider. So they will take care of all the migration and support if needed by the clients. You might want to ask a few providers and see.

 

[cocodude]

Agreed with selling them to another host as well.

A lot of people do this on Web Hosting Talk but for a UK business, you might want to also consider forums like this or Web Host Chat to get some decent hosting providers.

 

[LeanneMacco]

Thanks everyone. I'll brainstorm the logistics of it all and have a look around for potential buyers. Hosting is surprisingly stressful...

 

[[devnull]]

Hosting can be very stressful, we host for a lot of web designers/developers, it's a massive drain on their resources when in truth their time is better used or more profitable when spent on the design rather than hosting support/problem finding.

On your original question yes, selling to a provider makes more sense as you can draw a good line in the ground and say to your clients "We've decided to move all our hosting to X to make sure you get the service we feel your deserve" put the positive spin on things. The provider will then manage the migrations.

If you need a valuation let me know, we buy a few here and there so may be able to help.

 

[astutiumRob]

Does anyone have experience of this?

Lots

I probably have 60ish clients, some yearly some monthly.

First document _exactly_ what you're offering a purchaser
* domain registrations (for the business)
* clients broken down by plan and period
* details of the services offered
* number of IP addresses in use
* is this all the hosted clients or just some
* access you have to the hosting environment
* what software is used/needed for the business
etc

For ~60 clients it's probably something you'd be best offering on a Hosting forum like WebHostChat.co.uk or WebHostingTalk.com

 

[andygambles]

But hosting can provide a profitable recurring income. So why is it stressful? If you get a decent reseller account you do not have to worry about the hardware.

As the web designer you can charge a premium for looking after everything including uploading and setting up the website.

 

[astutiumRob]

So why is it stressful?

Who supports the clients when you go on holiday ?

Who answers the phone when the user spills coke on their crackberry at 2.15 am and wants to setup email again ?

Combine issues like those with the picking of the wrong provider for the reseller account, and it can be very stressful when all you want is a nine-to-five.

 

[LeanneMacco]

Who supports the clients when you go on holiday ?

Who answers the phone when the user spills coke on their crackberry at 2.15 am and wants to setup email again ?

Combine issues like those with the picking of the wrong provider for the reseller account, and it can be very stressful when all you want is a nine-to-five.

This is it. The passive income side is great but these are the exact issues I'm facing.

 

[andygambles]

Who supports the clients when you go on holiday ?

Who answers the phone when the user spills coke on their crackberry at 2.15 am and wants to setup email again ?

Combine issues like those with the picking of the wrong provider for the reseller account, and it can be very stressful when all you want is a nine-to-five.

I think you know I know that Rob

The problem is the OP is looking at it as a passive income rather than an integral part of the business which can produce good recurring revenue.

I know a few design agencies that outsource all of the hosting and support. But they bill the client. This maintains the relationship and helps ensure they are seen as indisposable. Plus the recurring revenue.

 

[HostXNow]

This is it. The passive income side is great but these are the exact issues I'm facing.

Instead of selling clients to another web provider you may want to consider using a reseller account with end user support so the provider answer tickets sent to your ticket system. The provider would just forward the Sales & Billing tickets to you.