Hosting Clients for Sale- Need Help

M

myhost234

New member
Hi Guys,

I own a small web hosting and was approached by a company that specializes in providing web hosting clients. They have some terms like my monthly hosting must be month to month and must not cost more than $9.95 monthly and for each client they recommend I will be paying a flat rate of $55 and they guarantee that if my service is what I claim it is, the client may remain with me for a year.


What do you guys think about that? They asked that I pay upfront but they guarantee the signup will be complete in 24-48 hrs

I will really appreciate your advice on this.
 
I'd be a very leery of this offer. Ask for references. Other companies they have done this kind of work for and talk to them directly about the service they received. It sound kinda fishy to me.
 
They asked that I pay upfront
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Stay away. This is a tell-tale sign of a scam. Don't even ask for references. Move on.

You could start a referral program and point them to it (perhaps pay out a fixed percentage of a customer's bill for as long as they remain a customer).
 
I guess you can always use PayPal and get your money back if it's a problem, but like WebFreak I'd be leary of such a thing.

If this is an established company you could easily find references on them and check BBB etc also - but it's an odd approach if it was out of the blue and you didn't go looking for this service.

That being said, I have worked with companies in the past which have provided clients to us through something similar that were very reputable, but we were dealing with both referral leads and also paid clients. They also offered a FREE setup in that they sent us 5 paying customers to prove that they could deliver what they promised, and then we purchased clients from that point forward. Was a great program for about 6 months, then out of no where we received a letter to say that they would no longer be offering the service as they have decided to persue a different path in business.

So, have them deliver on what they promise - tell them to send the customer, then YOU will send the money after "X" time etc. Remember, they want YOUR business, it's not you wanting theirs!
 
handsonhosting said:
I guess you can always use PayPal and get your money back if it's a problem
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Sorry, Paypal cover only payments for tangible, physical goods.
Therefore such a payment is not covered by any Buyer Protection Program that Paypal offer. :shocked:

Concerning the hosting clients for sale; a good advice: stay away from such practices.
 
I guess I've been pretty lucky then with PayPal as I've been able to file disputes on service related items and received money back and freezes on accounts - unless google considers webdesign or content creation as a physical item.
 
Could be that Paypal did a mistake; however the most possible reason is that yours other party waived its claim. Some persons want discuses among Paypal for personal reasons (as a doubtful membership; etc..)
In any case do not count NEVER on Paypal for payment concerning services and not for real goods.
 
I would be pretty cautious about this sale. If you are going to do, even though its a relatively cheap sale look into an escrow or something to protect yourself.

John
 
Not an enticing offer by any means with each referral payment of $55 being too steep. You'd be better off with starting an affiliate program if you are interested in getting customers through referrals.
 
PowerDot said:
Sorry, Paypal cover only payments for tangible, physical goods.
Therefore such a payment is not covered by any Buyer Protection Program that Paypal offer. :shocked:

Concerning the hosting clients for sale; a good advice: stay away from such practices.
Click to expand...

You can arise a dispute for services as well. There is no such kind of limitation with paypal.
 
Never pay upfronts! I don't mean to generalize but usually, things like this are spam. It's a big no no! I suggest you should be very very cautious.
 
myhost234 said:
Hi Guys,

I own a small web hosting and was approached by a company that specializes in providing web hosting clients. They have some terms like my monthly hosting must be month to month and must not cost more than $9.95 monthly and for each client they recommend I will be paying a flat rate of $55 and they guarantee that if my service is what I claim it is, the client may remain with me for a year.


What do you guys think about that? They asked that I pay upfront but they guarantee the signup will be complete in 24-48 hrs

I will really appreciate your advice on this.
Click to expand...

Don't do it - it's a scam.

They will sign up for accounts and then request that you pay them for those accounts... They spend $10 and get $55...
 
I would certainly run away from such offer. You have to ask yourself if they could get customers why wouldn't they host them themselves or refer them to the host that pays the highest commissions.

Jack
 
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