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B2B Website Development & Hosting Company – Over 2,100 Clients with Monthly Recurring Revenue & 80% Gross Margins


Website Closers® presents a booming Website Development and Hosting Firm that has built up a client base of 2,100+ clients who pay an average of $98.14 per month for hosting and website support. The business brings in an additional $130,000 per month in setup fee income, bringing client acquisition costs to nearly $0. The company caters to the small business community, providing a suite of website hosting and support services. They help companies grow by providing services that include writing content for each new website, optimizing it, and creating videos to help promote it.

The customer base has proven to be extremely loyal, and more than half of this company’s revenue comes from monthly recurring fees for hosting services. Gross revenues are projected to soar past $4 million by the end of 2021.

This highly profitable business has low overhead but tremendous growth and expansion opportunities. The business has relied on paid ads on Facebook as well as Google for its digital marketing strategy but could aggressively boost organic traffic through social media initiatives and through the use of content and video marketing. This company could also partner with industry associations and trade groups to attract new small business clients, and shift sales to an international audience as well.

This business was launched in February 2017, selling build-it-for-you websites, and the company quickly found itself experiencing stunning ongoing growth with a focus on website development and hosting services.

Currently, clients pay a setup fee that ranges from $99 to $2,495. The setup fee from each new client averages $528. Clients can then pay from $59 to $299 per month for the company’s monthly support plan, which covers a range of specialized hosting services. The average monthly charge is $98.14 at margins over 85%. As part of these services, this company will optimize the new website’s Google My Business listing, edit, and maintain the site, provide SEO optimization, craft all of the content on the website, and create a high-definition video for each new site to help promote them. This is an important service since websites with videos produce up to 12 times more phone calls from the same traffic as static sites.

Their client base is heavily diversified across the entire spectrum of SMBs. Their largest single client, with 30 websites under management, represents less than 2% of their recurring revenue stream.

In March 2021, 43% of the company’s total revenue of $323,088 came from site setup fees for website development, while 48% came from monthly recurring fees. The brand’s total revenue has increased at a staggering rate of $10,000 to $20,000 per month, each month.

Over the years, this brand has built up a strong customer base that continues to post rave reviews about the work they do, and 100% of their agreements are month-to-month ongoing relationships. Several of their websites now rank #1 on Google search engines.

Up until now, the company has relied on targeted PPC ads and cold calling to generate leads, and the owner has an experienced sales team that has successfully engaged leads by phone and who can determine a client’s needs before any price quotes are given. The average sales rep is now selling 10 or more new websites every week.

There are immense opportunities here to expand the business. These include leveraging enhanced digital marketing efforts. A new owner could launch an SEO program for the website and introduce a creative social media marketing campaign that focuses on sites such as Facebook and Instagram. Additionally, working with an affiliate network could drive incredible sales.

With an existing database of 2,100+ clients, this brand could also benefit from regular email marketing campaign to boost addon sales. Even without an SEO or social media marketing program, the brand’s own lead generation efforts have delivered an impressive 175 to 265 qualified leads per week.

There are other untapped opportunities to scale the business, including the use of content and video marketing to boost organic traffic, increasing the amount of paid traffic on Google, Yahoo, and other search engines, by cultivating relationships with various associations within this industry and trade groups that can help promote referrals. The brand could also expand its marketing initiatives on an international scale, opening up vast new growth potential there with foreign clients.

The buyer could also consider raising prices, which this brand is now experimenting with on a small scale, with the expectations that the current client base would be responsive to this.

The owner now works full-time running this business, overseeing the support team that manages the portfolio customers while also managing the sales team.  This workload could be minimized with the addition of a manager. The current ownership has 7 employees who handle client concerns with phone support and edit requests, and 35 employees who handle selling and building new websites. No effort is needed to manage and maintain the ongoing monthly hosting services.

This company is now on a strikingly high growth trajectory that got a significant boost in 2020 as prospective small business clients became more focused than ever on their digital presence, which helped boost the need for a highly professional web development service like this one.

With 2,100+ clients and those numbers rising fast, this is a well-established brand that also has a strong operations team in place. This is a very stable business now offering its services nationally but with the potential to expand globally.

The buyer would instantly enjoy consistent monthly cash flow from the growing number of paying clients. That provides the buyer with a company that requires little ongoing maintenance but delivers consistent and reliable cash flow, a fantastic deal all around.

This Website Development Company Represented by:

Website Closers

Technology & Internet M&A

Listing ID: WC2313

Asking Price
$ 7,000,000
Cash Flow
$ 1,411,726
Gross Income
$ 4,084,982
Year Established