Selling web hosting clients

[zlib]

I run a limited company and want to exit the hosting business. With today's various data protection laws, etc is it legal to sell off only the customers to another business?

I know I could sell the company as a whole but I have other ventures within it.

Just looking for potential options at the moment... thanks!

 

[fisicx]

Just tell your clients you will no longer be offering hosting. They can find new hosting absolving you of all responsibility.

 

[Alan]

is it legal to sell off only the customers to another business?

Yes it is, but a lot will be determined by your contract and in theory you can assign a contract individually but most contracts will not allow assignment without consent.

I'm actually doing this at the moment so I can concentrate on my plugins and custom development.

For each client it is basically handled as an individual 'transaction', which starts with a conversation as per @fisicx that I'm no longer offering hosting going forward, but I have found an ideal partner for them to move to, their choice sign up on the same terms and move to the partner and we will handle migration or sort out your own hosting. I then invoice the partner per migration.

 

[Aniela]

I run a limited company and want to exit the hosting business. With today's various data protection laws, etc is it legal to sell off only the customers to another business?

I know I could sell the company as a whole but I have other ventures within it.

Just looking for potential options at the moment... thanks!

It's legal if you do it correctly. If you don't, you would be selling their details illegally.

For a pure customer/contract sale, usually (in nearly all cases), customers haven't agreed for their details to be sold in this way, so you would need to request and record consent from them essentially.

That can be a royal pain.

 

[Highland Spring]

If you sold your Ltd company you may be able to claim entrepreneurs relief at 10% whereas an asset sale will be taxable at your full tax rate. I ran a web hosting company myself and sold it in 2016 so nice to read of someone else having gone through the same as me.

 

[UKSBD]

If you are worried about the legalities but just want to make a little money and move your customers on, find a reputable host you trust who has a referral programme and then rather than passing on anyone's details just recommend the other host to your existing customers.

Most will provide a link with your own unique tracking code

I use Guru - https://www.guru.co.uk/
Not because of the affiliate program but because their hosting is excellent.

Information on their affiliate program is here - https://www.guru.co.uk/support/affiliates

As an ex host they will probably do something a bit more special for you if you speak to them.