Ready to participate in digital real estate? Flippa is one of the top marketplaces to buy and sell digital assets. This Flippa review will highlight everything you need to know about this marketplace for websites, domains and blogs.
I’ve talked about website investing for a while now and the means to make money from scaling websites, both from a greenfield and brownfield perspective.
Most of my success has come from greenfield website scaling where you build a brand on a completely fresh idea with no history or prior ownership.
However, I now have much more experience and willing to dabble a bit more into brownfield website investing where you acquire existing websites, scale and sell.
Websites and digital assets remain my favorite way to make money online.
On Flippa, I’ve purchased a handful of digital properties including both domains and starter websites.
I also sold a small dropshipping site that I started for $3,000. It was a project that ultimately ended up being a huge time sink and I didn’t make a ton of money along from it.
I have a ton of experience on Flippa after using it for years now and I’m continually scanning their marketplace for more opportunities in the digital world.
Table of Contents
What is Flippa?
Flippa is an online platform that allows its users to buy and sell websites. This marketplace allows users to purchase and sell four main kinds of web properties:
- established websites,
- domains, and
- starter sites.
In this review, you will learn everything you need to know about Flippa and how to sign up for Flippa to help you decide whether it is a perfect fit for your online businesses.
Advantages of Using Flippa
You Can Buy Or Sell At Any Price Range
The biggest disadvantage of many platforms out there is that to do business on them, the value of your assets must be in the five-digit range and above.
However, Flippa allows small and medium-sized business owners to conduct business on its platform, meaning that you can sell assets worth four-digit range figures and below.
Anyone can buy and sell assets here, which makes Flippa a great option for a startup. You can deal with FBA businesses, websites, domain names, SaaS tools, and so much more.
Flippa Is Easy To Use
Flippa is easy to use and a beginner can quickly maneuver their way around it. You do not need any background in IT to get started on this platform. The homepage itself is welcoming with straightforward navigation to wherever you want to go.
If you are a seller, you will take a maximum of ten minutes to make a listing.
If you are a buyer, Flippa offers numerous options for you to filter through, making it easier for you to quickly get what you seek among the millions of listings.
Access To Great Deals
Contrary to popular opinion, if you know where to look, Flippa can be a great place to score a remarkable deal.
Unlike other digital asset selling platforms online that limit users using high valuations, Flippa is open to everyone, meaning that you will have a lot of sifting to do.
You might find a great website or other tools at a remarkably low price range that will give you great earnings.
Disadvantages of Flippa
Flippa is a great platform to deal with online tools, but it is not perfect, and still has a long way to go.
Flippa Is Prone To Scammers
As mentioned earlier, Flippa is home to everyone, which is both a good and a bad thing.
You will find a great deal on the platform but will have to do a lot of digging and filtering to get through the web of scammers lurking on the website.
Failure to do due diligence before committing your funds will make you fall victim to a bright, shiny object that is a dud. Some buyers on Flippa have actually paid tens of thousands of dollars only to obtain websites with zero functionality.
For instance, a deal whose selling price is less than two times its indicated monthly profit is too good to be true, and most likely a huge scam.
Flippa Does Not Adequately Verify Its Sellers
The problem of scammers may get solved if Flippa verified all their sellers and listings. You might never hear of a property that got declined on Flippa.
Most listings are based on the seller’s word.
Flippa Review & Ratings
Flippa’s users rate the website differently depending on their past experience and where they looked on Flippa reviews. For instance, on TrustPilot, you will find 4/5 stars, with a review on Flippa like ‘Loved my Flippa experience.’
However, on SiteJabber, the average rating is 1.3/5, and the reviews are anything but positive.
To help you make the right decision, here is an in-depth look into Flippa from a seller’s and buyer’s perspective:
How Flippa Works for Sellers
On its homepage is a huge button indicated ‘start selling’ from which you will have to select what you intend to sell among the options (apps, starter sites, established sites, and domain names.
How to sell a site on Flippa
Once you select what you intend to sell, Flippa will guide you through the rest of the process for creating your listing. Some simple questions you will answer include your business name, location, industry.
You will also answer more advanced questions regarding your income source, possible opportunities and weaknesses for the new property owner, number of employees, and others.
You will also have to verify your income source by either linking up QuickBooks or filling out the information yourself.
You will have to upload a Profit and Loss account that will be visible to buyers.
Upon verifying your financial information, you will need to connect to Google Analytics, which is an excellent way to verify a website’s traffic.
The last step is where Flippa recommends a sale price and lets you select between an auction or fixed price sale.
From here, you will select whether you want to sell your property via assisted sale or broker management. In an assisted sale, you will get an account manager, while in broker management, a broker will find a buyer for your site.
However, the broker management option is only available for sales worth $250,000 and above.
Flippa’s listing fees are low ($15/month), and as soon as your site sells, you stop the monthly subscription.
In addition to this fee, Flippa charges a ‘success fee’ that varies with the value of the web property you want to sell.
How Flippa Works for Buyers
Buying a web property is often better than physical property, as the property on the web will have gone past the failure threshold period and will have an audience you can already monetize.
However, as mentioned earlier, Flippa is famous for having poor quality sites due to its inadequate verification, so you will need to be consistent in your due diligence to find a good one.
How to buy a site on Flippa
You can start your search for the right site using the business categories on the search bars.
Flippa’s established sites category is where you will likely find a reliable deal. The starter sites are templates and therefore likely to be a scam.
This website has a remarkable range of filters, which is something I genuinely liked.
See Related: How to Invest in Websites for Profit
Is Flippa Legit?
For Instance, I specified that I needed a review website earning at least $100 per month but less than $1000 per month to fit my budget.
Before making a bid or even committing any funds, you should know that a legitimate website will most likely sell for up to 35x their average monthly profit on a brokerage.
Anything short of 20x should be a red flag to be avoided. As you look around, look for a selling price (Buy It Now) price that is also reasonable.
Another area to identify red flags is from the Google Analytics report that Flippa requests from sellers.
First, only request a read-only version and carry out an in-depth analysis of the numbers. Look for spikes in direct traffic that can be a sign that the seller bypassed SEO rules to buy traffic.
Other red flags include steep rises in backlink profiles that show that the website seller probably used spammy methods to build so many links in such a short time.
Take a close look at the referring links, if they have typos and weird languages, you should avoid the website. Also, inspect the website you are about to buy.
How rich is its content, when was a post last uploaded, and how relevant are the featured images?
If none of these make any sense, the site is likely bogus and does not bring in the profit the seller says it does.
Ease of use: 5/5
Flippa is remarkably easy to use. If you are starting out in the world of online sales sites, Flippa is a great place to start because it is easy to navigate and each button on the homepage will take you where you need to go.
The language is also easy to understand.
All you will require is an in-depth knowledge of what makes a valuable website to ensure you make the most of this marketplace to sell.
Its mobile version is also easy to use.
You can access Google Analytics reports on the sale page as well as the sellers’ answers to the questions highlighted earlier; information that will help you make an informed purchase choice.
Their support page and blog offers valuable information for common issues and FAQs.
Flippa’s customer support replies within 20 to 30 minutes after contact using a support ticketing system, which is not as efficient as a live chat system or phone would be.
Transaction Volume and Quality: 4/5
Since Flippa has a cost-effective lower limit for web property value, over 250,000 businesses ranging in value have been sold on this marketplace.
However, they could do a better job of verifying their sellers to reduce incidences of scammers.
Value for Fees: 4/5
Flippa offers excellent value for your money if you do your due diligence, an aspect that I have to reiterate. The fees for other web property marketplaces are way higher, with some charging as much as $297 as a flat fee and success rates can be low as 15%.
Flippa offers a wide range of tools and information you can use to buy the property you require or sell at a profit.
If you are looking for a lower-end marketplace to deal with digital assets, then Flippa is a good place to start. The website is friendly for beginners and allows you to buy and sell your sites in any price ranges.
However, if it is too good to be true, it most likely is. If you are on a budget, take your time and sift through the massive listings, and you will find something worth your while.
Frequently Asked Questions (FAQs)
What Kinds Of Listings Does Flippa Offer?
Flippa offers Public auctions and Private sales (Classified). For a public auction, buyers place bids over the period that the auction is live, and those intending to win must ensure that their bid is higher than the current one. Sellers must accept buyers into the auction for them to bid.
In a private sale, all offers made to the seller are private, and only the buyer and seller will know the final selling price. Public auctions last between 3 and 30 days while private sales have no time limit.
What Are Flippa’s Listing Fees?
Starter sites (websites younger than three months) and iOS and Android apps cost $15 per listing. Domain listings cost $10 per listing, while established sites cost $49 per listing. Established site listings also have upgrade options (Premium Listing as much as $295, Marketing Boost as much as $450, and Ultimate Boost as much as $950).
You can purchase an upgrade for the app, domain, and starter sites from as low as $65. The upgrades offer you services such as enhanced market exposure, featured blog posts, social media promotion, and premium customer support.
There are variable fees that depend on the final sale value (success fee) and whether you require brokerage services.
What Payment Options Can I Use?
Process your payments through Escrow.com or PayPal. Buyers may also buy properties via credit/debit card at a 2.9% fee.
What Do I Do After Someone Makes Me An Offer?
Carry out your due diligence to determine that the seller is fully aware of what they are buying and has no pending questions. Draw a contract of sale with clear deliverables and terms, (Flippa has a template that you can use, but it is better to seek legal advice with regard to the final contract of sale), then facilitate a clear process of asset transfer and communicate with your buyer.
Flippa can also assist with funds transfer.
What Is The ID Verification Process On Flippa?
This is a process meant to make the marketplace safer by verifying everyone’s ID before they make or accept payment. This process is only done once. You may use your driver’s license, passport, or national ID as proof of identity.
The instructions are straightforward, and verification should not take more than three minutes.
Can I Bid On My Own Auction?
Sellers are not allowed to bid on their own auction. This is called shill bidding and is one of the grounds for permanent account suspension.
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