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Monday Night Boat Cruise at Parallels Summit

Tue, 20 May 2008 07:10:53 -0800

theWHIR.com posted a photo:

Nice view of the sites with a rare DC sunset down the Potomac River, sponsored by Microsoft. Thanks, Microsoft!

Come on Down, Then Sell Your Hosting Company

Tue, 20 May 2008 10:55:00 -0400

This is a no-brainer that can be hard to do. Family, friends, schools, pets all figure into the situation. But is should be on your plate.

Here are some of the top rates for state income taxes; Vermont 9.5%, Oregon 9% and New Jersey 8.97%.

Now there are many other states with high state income taxes. The California State Motto is Eureka "I have found it!" is aptly stated. After all California has a 9.3% state income tax rate plus a 1% kicker imposed on taxable income over $1 million. If I read the tax codes right that equals 10.3%.

Since it makes my case, let’s look at the worst case. You net $500k from your hosting business. In California you pay about $45k in state income taxes and another $155k in Federal Income Tax. So 40% goes to the government. Not to mention FICA, 8.5% sales tax etc.

So you decide to sell the business, it sells for $5 million. In California that adds about $500,000 of your money to the state coffers. You get $500k less. Your retirement fund just dropped $500k. That Ivy League school for the kids is a bit tougher to handle.

Do some family planning. Move to Florida, it has zero, nada, and no state income tax. So does Alaska, Nevada, South Dakota, Texas, Washington and Wyoming.

Now the M&A Part – Buyers don’t make up for the sellers shortfall. It is just as easy to buy a company in Texas as in California. Think this one over for a while.

So talk to your attorney and accountant, make sure everything’s legal and makes sense. Then come on down to Florida a couple years before you sell. You could add some $600k to the retirement fund. Oh yes, real estate is a bargain since the bubble burst.

Written from Cape Coral, Florida - Rather than our old Milwaukee diggs (6.75%)

More about Tom:

New Commerce Communications

E-Mail Tom Direct

This only means one thing. It is easier now to find the right web host for your application. The possibility of quality web hosting companies separating themselves from the rest of the industry is anticipated. If this is done, the unprofessional and incompetent ones will suffer.

Let me apologize for not writing even once during more

than a month. I not only was too busy with solving countless

problems involving my sites, and domain names and whatnot,

but I had also some personal issues involving family matters.

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I've been with hostgator since around August of 2004. I signed up with a
reseller account to use as hosting for both myself and clients. My problems
began about a year ago with them, sometime in February or March of 2005 when one
of my sites was getting too much traffic. Now, I'm no fool. I understand that
shared hosting oversells and anyone who uses too many resources, even if still
within their quota, gets kicked off. What really shocked me, though, was no
warning. Not even emailing me after they had done it. Nothing, nada. I found out
by a member of the site that was suspended, someone I didn't even know, tracking
down my phone number and calling me.

I went to a dedicated server after that, but I kept my hostgator account for the
sites that were already hosted on it - about three client sites, as well as this
site right here.

Two days ago I come to post a blog and hmm, I get the suspended page. That's
weird. I check my email - no notices there. I log into their billing system -
nope, account not past due. What the heck? So I go to their online support chat
and ask them what's going on. I'm informed that I haven't paid my invoice. What
invoice? I have no invoice. I check my bank and I see that I in fact have not
paid them since January. But man, I could've swore I put it on automatic pay.
And hey, if there's no invoice, how can I pay anyway?! Isn't this a problem on
their end? They tell me I need to email sales.

Okay... so I email sales. 12 hours later, they email me back and inform me I
have an invoice, charging me all the way back to October. Uhhh? I KNOW I paid in
January, I have it in my bank statement. I check their billing system, and they
don't even have a backlog of that payment. Something really funky is going on
now. Their system is screwed up, but no matter who I talk to (and oh, I've
talked to everyone) nobody seems to know what's going on. Sales doesn't talk to
support, online support doesn't talk to phone support, so who the hell knows.

Strangely enough, while on the phone with a support guy who informed me I just
need to pay the invoice and then dispute it afterwards, I received an email from
a different support person that my account had been reactivated, and thank you
for the payment. Whaaat? Uh, whatever. At this point I'm just going to take what
I can get and run. Now I at least have backups of all my sites and am moving
them.

It's just astounding how bad a service this has been. I even posted on their
forums about it, in their "Customer Review" section, and it gets MOVED to
another section because I can't post a bad customer review simply because I
haven't paid. HELLO. I WANT TO PAY, JUST NOT MORE THAN I OWE. I NEED AN INVOICE.

Other problems I've had? Well, let's see. About a week ago my sites reverted
back a day and I could get no explanation on why. I had JUST looked at my access
logs the day before, happy about a new site that was already getting hits, and
the next day - logs are back to a day before. Weird. I contact online support
(bad idea, since it's always horrible support) and they have no idea. I guess I
imagined things?

UPDATE 4-20-07: Well, they finally just simply decided to take their bogus bonus
from my credit card that was filed with them, despite the fact that it's
incorrect, I didn't approve of the payment, or anything else. I've never seen
such bad service, support in my life. I can't even be bothered to dispute it
it's just so amazingly horrible.

UPDATE 10-18-07: I'm still with them, why? I don't know - so lazy when it comes
to my own websites. Anyway, so a couple days ago I notice my "main" reseller
account, the site is completely missing. Email is no longer working. I log into
Cpanel to see that it appears my whole site has disappeared. Cute!

Click Here to go to hostican website.

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