WebsiteClosers® presents a 12-year-old Web Hosting Agency dedicated to providing top-of-the-line service. They offer a full range of custom services personalized to meet the unique and specific infrastructure needs of their clients. Their level of customization, round-the-clock customer care, and technical support sets them apart from competitors focused on “volume business” and selling inflexible packages.
Their commitment to client satisfaction has won them many loyal consumers. They currently have 865 active clients, some of whom have been with the brand for over a decade. This level of loyalty has led to limited customer churn, plenty of glowing word-of-mouth referrals, and a Client Retention Rate of 80%. The brand also has 50,000 subscribers in their email database, which a buyer will be able to utilize for newsletters and marketing purposes.
Their average client’s annual spend varies widely, ranging from $500 to $75,000 in some cases
Business Broker Takeaways
1. Recurring Revenue Model. The brand’s array of services and dedicated clients provide them with steady recurring revenue. 88% of their profits are generated from their recurring web and cloud hosting, with the rest being generated from their other recurring services such as domain registrations, SSL’s, email server hosting, and more.
2. Strong Reputation. While they pay to be listed on various online marketplaces in India and around the world, a substantial amount of their traffic is organic. Along with their word-of-mouth referrals, the brand publishes blog articles on their websites to boost their SEO, send printed leaflets during New Year/Diwali to existing and future target clients, and continue to participate in awards programs and networking opportunities.
They have also received various awards for their services and been featured in many magazine articles and have even been listed on the official Microsoft website as a partner. These qualities generate more leads and add to their brand value. Outside of these organic leads, the brand works with an agency to run their social media marketing.
3. Few Special Skills Needed. A buyer will need no special skills outside of the patience to listen to clients and/or colleagues, and the ability to give internal thought talk to contractors. They will also need to be able to ready a packaged solution with a list of services, delivery time, and commercials when needed.
Current ownership is open to an extended transition period or staying on in an ongoing support role, which will help the buyer more easily adapt to their new role and responsibilities.
Operations
The brand has a fully developed support team in place, with their employees filling the following positions:
• Senior System Administrator
• Assistant System Administrator
• Billing Manager
• Customer Care Executive
• Vendor Manager
• Office Coordinator
Current ownership spends 25 to 30 hours per week on keeping in touch with vendors, having discussions with the CA/finance team, running team meetings, and talking with new clients in certain circumstances.
Scale Opportunities
There are a few strategies a buyer can take if they’re interested in scaling. They could start by upselling their services to existing clients and expanding their geographic range to target more potential consumers than ever before.
However, one of the most promising opportunities available to the brand would be to invest in their digital marketing efforts. A buyer could create a budget for paid advertising purposes and set up a US office with 3 to 4 customer care executives to run online marketing in the US.
They could also continue to establish themselves as experts in the web hosting industry through their on-site blog and social media channels, increasing their flow of organic traffic.
Conclusion
This acquisition is based in a lucrative industry, as the digital age requires many businesses to establish a solid online presence. A buyer with the proper marketing knowledge to promote the brand and their services could quickly take them to the next level.
