Cody McLain
๐ค SpeakerAppearances Over Time
Podcast Appearances
Maybe $20,000, I think.
It was, I'd like to say around 650, 700,000.
Okay.
Yes, I sold it to a company called Lunar Pages, and they're in Orange County.
It's mostly just based on the one-year projection from the time of sale.
Really, the hosting industry, it's actually very difficult to have good margins.
My margins were going to be on the lower end because what I ended up doing is actually leasing servers.
So when you're starting a hosting company, you end up, the easier route is to lease servers instead of own the servers.
Keep your costs low.
Yeah, you keep your initial costs low, but it makes your expenses significantly higher in the long run.
And since I didn't have the capital go and buy a couple thousand dollars worth of servers, and then also having to figure out which data center I'm going to put it at, and which can I have a
a guy that's going to be around 24 hours a day, seven days a week to respond to any server issues.
And that would affect your reputation.
So I decided to just lease everything out.
And so on the benefit of that, though, is that when you decide to sell the company, it essentially creates the only assets in the company is going to be the client database.
And so the new provider, they just had all their own servers.
So it's actually preferable when you end up selling it to just not have any physical assets.
I'd like to say five.
It was between five and 10,000.
Okay.