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How Much to Pay for a Existing Client List?
Last Post 30 Nov 2009 06:50 PM by squinley. 1 Replies.
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mpdaileyUser is Offline
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18 Oct 2009 08:12 PM  
There is an IT company closing its operations in my area and is selling its client list. There is about 30 business clients and 70 residential.

Income generated in 2007 from onsite service was $43,994.93.

Income generated in 2008 from onsite service was $33,373.50.

Any thoughts?

Thanks in advance,

Mike D.
squinleyUser is Offline
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30 Nov 2009 06:50 PM  
Mike,
May make sense to offer them a percentage of the income from their clients that switch to your company over the next year. Pay quarterly on collected revenue but cap it at one year. You will have to figure out what percentage makes sense to you. If you "buy" their list, you don't have any guarantee that the clients will make the switch to your company. But, if the current company gets paid on actual revenue, they wil be motivated to help you transition their clients. Win-Win

Steve
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