1) Owners of web hosting companies often incorrectly apply valuation formulas meant for other industries and are disappointed when offers come in lower than expected. Valuation requires considering the specific characteristics of the business. 2) While design services can reduce churn and increase sales to existing hosting clients, the revenue is one-time rather than recurring like hosting, so it provides less value when selling the business. 3) Investing in an internet data center can greatly increase the long-term value of a company but reduces short-term liquidity. Smaller hosts typically start by co-locating and later acquire their own data center space.