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Evaluating a new provider's financial health

General Discussion by RAJ 1 replies 145 views
6 #1

Guys been burned twice this year by hosts going dark overnight. Started compiling public signals before I move any clients. Here's what I check:

  • WHOIS age vs claimed founding date (caught one claiming "since 2018" with WHOIS from 2022)
  • Payment processor diversity - only PayPal? Red flag
  • Ticket response time trends, not just first reply
  • ASN registration dates and upstream changes

Any leads on other signals? Margins in this game are thin so I get why some fold but I need to protect my book.

🙏

your margin is my opportunity
#2
RAJ said:
Protect my book

Not legal advice, but section 7.3 of most hosting TOS defines "acceptable use" broadly enough to terminate for "business necessity" without refund. Check if your provider's TOS references "affiliate entities" without definition; that corporate shell game matters when they fold one LLC and reopen under another. I once traced three supposed competitors to the same registered agent in Delaware. Definitions matter.

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