So you’ve managed to run your website hosting business successfully and you’ve amassed a number of WordPress hosting clients. You’ve perhaps started considering retirement or moving on to another chapter, and you’re considering trying to sell.
The question you’re probably asking yourself is: what are my WordPress hosting clients worth?
They may be more valuable than you think; to the right buyer.
You see, small web-based businesses tend to be fairly niche. They aren’t a commodity. The extra service you provide to your clients above and beyond the hosting, and the unique service offering you bring to the table?
All are valuable, but difficult to quantify and harder still to demonstrate to a potential buyer.
So what exactly can you get for your hosting clients or business?
The general rule of thumb is that buyers will be willing to pay around 1x recurring yearly revenue.
This is great news if most of your revenue is recurring, especially if you can find a potential buyer that provides the same level of service as you.
Now, clearly the price can vary based on a number of factors. But the more organized your business, the more committed and loyal your customer base, and the more similar your buyer is to your business, the more you can expect to make.
In our case, we tend to be looking for small WordPress hosts that work closely with their clients and provide an all-inclusive service where they handle all aspects of hosting.
The typical size we are looking for is anywhere from 50-500 sites hosted. Most of our clients are small business and organizations, everything from B2B services, to niche products (WooCommerce), to professional membership organizations.
With the right buyer, we may be willing to pay more than 1x yearly recurring revenue. And note that it’s revenue and not profit. So if you’re taking in, let’s say, $50,000 but profiting $10,000 in a year, a standard purchase price would still be $50,000.
And rest assured that we’ll take great care of your clients. We’re a small business focused and making it ridiculously easy for clients to maintain their WordPress website. We offer incredibly fast hosting speeds, optimization, recurring updates, as well as all the services you’d expect from a website design company.
If you’d like to chat with me about potentially selling your website hosting company (or even just the clients!), you can reach out directly! My name is Brian and I’m the owner of PageCrafter. You can reach out directly (call or text) at 952-457-4746.
If you don’t get me the first time, please leave a message! I’ll be very interested to call you back right away.