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Flippa has earned its reputation as the place to go if you want to buy or sell online businesses without a mortgage, or if you don’t have at least four zero ratings. Is it still there? We examine this with our in-depth Flippa review.
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Flippa allows you to buy and sell web properties. In this Flippa review, we look at buying and selling on Flippa. We determine whether Flippa is a viable marketplace (it exists), how widespread fraud is (very common), and how to buy or sell real and valuable web assets.
Entrepreneurs Checking Online Business Orders Through Smartphones, Laptops Displaying Online Shopping Store Websites, Small Business Ideas Using Cyberspace Technology To Market Products To Sell. 11091569 Stock Photo At Vecteezy
Flippa is the ultimate marketplace for online business owners. This is a great place to market your website if you don’t want to deal with a lot of tire traps. I would not recommend anyone buy a site on Flippa though. There are many scammers out there.
Flippa is used by millions of buyers and sellers to buy or transfer businesses online. Here are some things that go well:
Flippa fills a market need by allowing small and medium business owners to buy and sell on their platform. As much as I love Empire Flippers, FEInternational and Quiet Light Brokerage, you won’t get the time of day on those platforms unless you have five figures.
Flippa allows anyone to list any website for sale. As a result, you can buy any sales site.
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I appreciate how there are opportunities for anyone to use Flippa. No matter your budget, no matter the size of your property. You can buy or sell businesses online on Flippa.
In Flippa. The platform allows you to sell websites, domain names, software, FBA e-commerce, SaaS and more.
On the seller’s side, it takes no more than 5-10 minutes to list a website for sale. For buyers, there are a large number of filtering options.
Another “pro” of Flippa is that there are great deals to be found, you just have to dig. As I will share in the “Cons” section, you definitely need to sift through a lot of sites before you find a rough diamond…but people sell great sites to buy on Flippa. You have to find them.
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Flippa is good, but not perfect. To be honest, the platform has a long way to go
Are you the type of person who gets excited when you see an email from the head of Nigeria? Then Flippa might be the place for you. Shop to your heart’s content.
Unfortunately, there are many ways you can get scammed online and Flippa is a hotbed for scammers.
Many of these problems can be solved if Flippa does the due diligence to vet the online businesses they sell.
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In some cases, traffic and earnings are automatically confirmed (app-attic links), but in other cases, it depends only on the seller’s word before going to the listing page.
Mushfiq from TheWebsiteFlip has done over 110 deals on Flippa since 2010 and wrote a useful blog post outlining ten common flags to look out for when buying on Flippa.
There are sites all over Flippa that sell very little compared to their monthly “profit”. And just because you see bidders doesn’t mean they are legitimate and valuable web assets.
This is the problem Spencer is trying to fix with Motion Invest. They review each site so you can be sure you are buying a site with proven earnings.
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Reviews on TrustPilot give Flippa 4/5 stars. People say things like “I was very happy with the service…” or “Positive feedback…” or “I loved my experience with Flippa…”.
But then you go to the reviews on SiteJabber and the average consensus puts Flippa around 1.3/5. In between insults about customer service agents’ mothers, you might think of other things said here.
Flippa as we see it has two parts: buying and selling. Let’s start by looking at online business marketing at Flippa.
Flippa is a marketplace for four types of web properties: startup websites, established websites, software and domain names. You can sell any of these on Flippa and the process is the same for all.
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(We talk about why Flippa differentiates between startups and established websites in the Buying on Flippa section, so read on).
It’s easy to start selling on Flippa. On the home page, you’ll see a big button that says “Start Selling”:
When you click the button, Flippa will ask you what type of web property you are thinking of selling. Here you will find the difference between established websites, startup websites, programs and domain names.
Flippa guides you in creating your ad. They will ask some basic questions about your business:
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If you know enough about buying or selling web properties, you will be well prepared. Explain your sources of income, talk about how you make money, possible weaknesses, opportunities for new owners, staff size, etc.
This is very basic, but be prepared to spend some time on this. Everything you put here will help buyers and allow you to sell your business quickly and profitably.
Then you get down to the nitty gritty. Flippa does not review any of their business listings, but they do require you to provide a “certificate”.
So I said my website has been making $10,000 a month with $100 in expenses for a total profit of $9,900 a month since last year.
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You need to upload a profit and loss (P&L) statement to Flippa. But again, it could be anything. I uploaded the last screenshot I took. You can upload a picture of a purple squirrel or an advanced P&L that, like any good Instagram style, has been touched up with a fair amount of Photoshop.
Be aware that buyers can see this P&L, so you can’t sell a site that offers uploaded pictures of purple squirrels as a P&L. But if you’re a buyer, understand that there is
After increasing your earnings, Flippa will ask you to connect Google Analytics. (It’s a good way to check traffic, so I think Flippa did it well).
Then you list the business assets. This includes social media accounts, hosting, email accounts and anything else involved in the business. Here goes your actual calculation.
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And then we’re in the final step of choosing our marketing information. Flippa indicates the sale price and allows you to choose to sell by auction or by fixed price list.
I understand that at traditional brokerages sellers pay brokerage fees. This is usually a flat fee followed by a percentage of gross sales. Flippa has 2 options for selling your website: Marketing Assisted and Broker Management.
Affiliate marketing is where you find account managers. Broker management means you get a dedicated agent who will find buyers for your website. A minimum sale price of $250,000 is required for brokerage management.
Flippa has low listing fees, so $15/month makes it very easy to decide whether to sell your website or not. Obviously, you can stop the monthly subscription once your website is sold.
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Once you select Assisted or Managed, you can choose to upgrade your listing. You pay your listing fee, add on if you want, and your property is ready for sale.
Outside of Flippa’s $15/month fee, they also charge a success fee. When you sell large web properties, the price goes down:
As much as I love Empire Flippers, (check out Spencer’s interview with founders Joe and Justin) their success fees start at a flat fee of $297 and then a 15% success fee. Empire Flippers minimum success fee is still 8% which is very high compared to Flippa.
One alternative that has been proposed is a business Spencer has started called Motion Invest. The team at Motion Invest buys websites and then sells only the websites it owns. If you sell your website to Motion Invest, it does not charge any agency fees.
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Even if your site is very small, the savings can be hundreds or even thousands of dollars. You can click here to see what Motion Invest will buy your website for.
Now that we’ve seen selling on Flippa, let’s see how to become a buyer.
The math works: it’s better to buy than to build. The failure rate is low, you get an immediate return on investment, and you have a solid audience that you can monetize.
But Flippa doesn’t have the high quality reputation of the sites they list, so you may have to dig around to find a good one.
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Low quality sites are definitely a result of Flippa’s “0 review policy” we saw above. Anyone can list anything on Flippa and add their numbers.
Totally Flippa’s fault. Aaron saw a site “making $600/m profit” and thought he could buy it for $1,000.
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