Have you ever wondered how does Flippa works? Do you want to get involved in this digital business? Then you have reached the right place.
For those who don’t know, Flippa is a popular platform for buying and selling digital assets. Over time, the field of website buying and selling is becoming increasingly competitive, which is why it is frightening.
After all, transferring a website isn’t the same as exchanging an actual thing; therefore, trust and security are far more important than if you’re simply selling a commodity.
In this review, we will explain how does Flippa works and demonstrate how you can leverage it to your advantage. Here, we will look at the pros & cons of buying and selling on the platform, buying & selling tips on Flippa, and tips for success on Flippa. So you can understand Flippa well and succeed on the platform.
Before we look into that, let’s look at some basics.
What Is Flippa?
Flippa was founded in 2009 as a spin-off website from a much older website called SitePoint. It began as an online marketplace for digital property, primarily websites, and domain names.
It is a platform where you can buy and sell websites, domains, and even mobile apps. The portal aims to assist website owners in selling their websites and assisting others in purchasing established websites, domains, and mobile apps.
Sellers can list their digital assets for sale on Flippa, and buyers can browse the listings to find assets according to their requirements. Whenever a buyer finds an asset they are interested in, they can place a bid or make an offer to the seller. If the seller accepts the offer, the buyer can complete the transaction via Flippa’s secure payment system. Ultimately, Flippa offers an excellent way for individuals and businesses to buy and sell digital assets.
What can you sell in Flippa?
Flippa is an example of a website that serves as a marketplace for both buyers and sellers. Buying and selling on Flippa is a rather simple process. You’ll see different categories of businesses that individuals list on Flippa at the top of the home page.
It offers a variety of domains, websites, and mobile apps for purchase, with either a fixed-price listing or an auction-like approach.
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When you look at the numerous types of websites that are for sale, you’ll see that they fall into a few main categories.
As you can see, the Flippa website types are:
Flippa Apps are divided into two categories: iOS apps and Android apps.
Apps are advertised like websites are, and they can sell for a lot of money. Due to the various technical platforms employed, managing and buying an app differs from purchasing and selling a website.
As a result, you must have a foundational understanding of the app market before making a purchase decision.
Purchasing or selling a domain name on Flippa is significantly easier than purchasing or selling a website or app. There is less data and information to communicate, making payment and transfer easier.
After looking at what you can sell on Flippa, we will understand how to sell on Flippa. In other words, how the platform actually works? So, let’s start.
How Does Flippa Work?
Understanding how Flippa works is crucial in getting the most out of the platform. You’re not selling or purchasing directly from Flippa. On the other hand, this website is a peer-to-peer marketplace where vendors and buyers can connect. Companies and individuals list their digital assets for sale at a predetermined price or in an auction, and anybody can bid.
There are three ways to go about getting into the Flippa:
- Build and Sell – Creating a resource from the ground up. Following the development stage, you work to popularize a website and make it appealing to potential purchasers. When you reach a particular level of traffic, you can sell your platform.
- Buy and Hold – This entails purchasing a website and keeping it for the next 2–5 years. The site will continue to earn you money for as long as you own it, and if you know how you can grow it to earn more.
- Flipping – This refers to purchasing a website, holding it for a short amount of time, and then selling it for a higher price than you paid for it.
The Pros of Buying on Flippa
- There are a variety of filtering options available to buyers. The home page, in our opinion, is user-friendly and assists you in getting where you want to go. Flippa receives high marks for use, filtering, and navigation.
- Buyers benefit from low multiples. With a bit of perseverance and a good grasp of how does Flippa work, you may locate some fantastic sites for less money on Flippa.
The Cons of Buying on Flippa
- There is no website that is immune to online scams. Due to the company’s poor inspection of listed sites, there is a risk of scams on Flippa.
The Pros of Selling on Flippa
- Another feature of Flippa is that it is simple to navigate. It takes 5-10 minutes for a seller to list a site for sale.
- You’re placing your firm in front of the most significant leads by listing it on Flippa. The platform will provide you with a broader range of buyers of greater quality. Only serious queries are received after ID verification.
- It has a broker that could be a fantastic help to ensure proper merchandising for your company. They are well-versed in the finest information to present and who to target. They’ll be able to tell you who your adverts should be directed at the most.
The Cons of Selling on Flippa
- Consider listing yourself if you are hesitant to relinquish control of the sale. You may clearly know who you want to target and lead your firm. It could be unsafe to delegate the job to someone else.
- Compared to selling through a traditional business broker, Flippa can expose you to higher risks. Scams can get through no matter how thoroughly a buyer has been vetted online. Moreover, it is one of the disadvantages of any Internet transaction. Face-to-face sales may be your best alternative if you are unwilling to take that chance.
- Flippa is more of a business-for-sale platform with auction-style postings, and you will typically not earn as much for your business on these marketplaces.
Buying and Selling on Flippa
Before you decide to buy or sell a domain name on Flippa, there are a few things you should think about and be aware of.
Flippa Buying Tips
Here are our Buying tips on Flippa:
Choose the Type of Company You Want to Work for.
First and foremost, consider the type of business you want to start. It is entirely up to you to decide what type of business to start.
Search for Businesses at Least 2 Years Old
When searching for businesses, it’s great to limit your search to those at least two years old.
It helps you avoid scams and low-quality businesses with a bad track record. However, this method may also cause you to miss out on promising new startups. By using advanced search options, you can narrow down your search by specifying the age of the website, which can help you find more established and reliable businesses.
Study the Valuation Multiples
You’re buying a company; thus, you should know the fundamentals of how companies are priced, which are annual earnings multiples.
When buying a firm on an internet marketplace, the chance of being ripped off is extremely significant; hence the valuation should be significantly lower than 20x earnings. When calculating a company’s yearly earnings, use the most recent 12 months of data.
Determine Your Budget and Earnings
Set a range of your budget and earnings. You can figure out what monthly profit range to use on search by dividing your overall business purchase budget by 24 and 12.
Look for a Business that You Can Run
Look for anything you’re familiar with or could learn about. It’s relatively simple to grasp what you get when buying a blog or an eCommerce site.
You can also buy an existing business. Buying an existing business rather than establishing one means you get many years of hard labor for a small investment.
Recognize the Threats of Technology
If you’re buying a more complex tech company, you should be aware of the technical risk.
If you’re a developer and come across a company in a field you’re familiar with, you’ll have a significant edge in evaluating it. If you’re not technically inclined, we recommend teaming with someone who is or staying away from companies that rely significantly on technological innovation.
Patience and Diligence are Required
There are thousands of listings, but most of them are scams. Only a few are truly exceptional, necessitating extensive investigation and perseverance. Expect to remain looking for new listings for at least two weeks. We recommend signing up for an account and saving your search. You’ll receive a daily email feed of new postings that fit your search criteria in this way.
Prepare to Move Quickly
Check the seller’s sales history to see if the site has been sold. If everything appears to be in order, schedule a meeting session with the seller. Inquire about their reason for selling, and have them screen share and log in to their payment method so you can see their actual earnings during the conversation. Do the same with the admin panel and email inbox on the website.
Expect to do this type of research 3–10 times before you find and acquire a business.
If you start asking questions quickly, you’ll be ready if a company adds a Buy It Now pricing later on.
Buy with Escrow
Simply use Flippa’s Escrow services if you’re buying on the platform. Allow for at least a seven-day escrow period. It implies that the business, email, and social media accounts will be handed to you on the first day. You’ll have seven days to verify everything is legitimate before the funds are issued to the buyer. Use the time to ensure that traffic is as it should be.
Flippa Selling Tips
Now that you know more about how Flippa works, here are tips on how you can successfully use it. Want to advertise your business quickly, connect with buyers, and sell it to someone who shares your passion? You have reached the right place.
Flippa is a secure and trustworthy platform for selling your website. Every hour, companies worldwide are selling websites on Flippa.
But first, let’s break down some of the things for selling domains on Flippa:
Evaluate Your Website
You’ll need to determine your website’s fair selling price. Instead of settling for a cheap price based on monthly revenue, advertise your website’s development potential and essential characteristics, such as social media popularity and search engine ranking, when preparing it for sale. You can charge more in this manner because of the long-term benefit it will provide to its future owner.
Recreate the Original Design
You should update the style of your website before selling it.
As soon as consumers land on the first page, ensure the message and brand identity are clear and appealing.
Then, because most users will log in from their mobile devices, create a clutter-free website optimized for mobile visitors. You should also make sure that the controls are simple to use because if the design is intuitive, visitors will have a better time utilizing your site, resulting in higher conversion rates.
Use the Appropriate Sales Language
When selling websites on Flippa, you’ll want to write some information about every site, similar to how you’d write sales copy. Open-ended questions are extremely effective at provoking contemplation.
Another important consideration is to minimize clutter and potential drawbacks. The simplest way to convey this is to use two marketing phrases as an example.
Make an Informative Video
Some prefer not to read a word sales pitch and would rather watch a video. While videos are simple to make, choosing the appropriate words can be a challenge in and of itself.
However, It’s a no-nonsense approach to an online sale, providing the facts that purchasers seek in a straightforward manner.
Make Use of Your Email List
If you’ve built up a strong email list over time or have a large following on Twitter or another social media platform, always include them in the conversation. Your personality and skill set will always leave a stamp on this site, especially if you are in the internet marketing game or a recognized expert in SEO.
It’s important to remember that when you sell on Flippa, only individuals who visit the site can see it for sale. If you don’t ask, you’ll never know who could be interested in your list.
Give Out Some Freebies
Offering something for free is always the best way to go in any sort of internet marketing.
Keep Your Asking Price in Line With Buyer Expectations
Avoid broad claims in the hopes of eventually negotiating them down. The key to a successful sale is always a reasonable seller valuation! You’re better off being more moderate, garnering many potential purchasers’ interest, and negotiating based on demand.
Provide a Photo
To represent your company, please post a clear, high-quality photograph. Make a wise decision. This image should immediately convey the nature of your firm to potential customers. A screenshot of a webpage or a storefront is recommended. Please don’t use borders, text, or watermarks because Flippa will utilize them for marketing purposes as well.
Answer all of the buyer’s inquiries, regardless of their nature, while giving additional customer service to help you close the deal.
You will considerably boost your chances of making a deal if you remain responsive throughout.
You should be patient, knowing that finding the right buyer can take time. If you’re selling on Flippa, you can specify how long the auction will last.
Why Choose Flippa?
In summary, the following are the three primary factors why for choosing Flippa above other similar platforms:
- Flippa is a well-known website, with tens of thousands of buyers and sellers trusting it.
- Flippa has a much larger readership than any other website of its kind, with more than 3 million + registered members. The user base of all other online markets is a minuscule fraction of that.
- It is simple, inexpensive, and quick to enter the market and sell a website.
Tips for Success on Flippa
Here are some of the most crucial things you should consider for getting success on the platform.
- Describe your profile: Optimize your profile on Flippa by adding details about your expertise along with the links to your website and social media profiles.
- Appropriate listings: It is your listings that can attract buyers. Therefore, you should provide all the crucial details about the website, like niche, revenue, traffic sources, and future growth.
- Provide verifiable data: Various serious buyers want to view Google Analytics to verify your data before making any purchase. They check out the website traffic and verify whether the website has the potential for growth in the future. Conversely, it increases your credibility and helps buyers to make informed decisions.
- Be transparent & use clear language: You should remain transparent regarding the website performance, traffic, and any issue. It also should be mentioned in simple language without any technicality.
- Negotiate like a professional: It is one of the most crucial selling skills. Ensure to negotiate well and remain open to compromise.
- Become familiar with the platform’s fees: Flippa has different fees for listing and selling websites on its platform. You should know this well before listing anything.
- Improve trust rating: Every profile on Flippa has a trust rating, and buyers look at this prior to placing bids. Simply put, the better the trust rating, the higher the chances of selling your websites.
- Set your limits: Set realistic expectations and know your limits. Don’t overextend yourself financially or take on more than you can handle.
- Answer every comment: Despite clearly describing the website, users would have some questions. Always be ready to answer their queries. It will urge commenters to post your questions and improve your credibility in the auction.
- Invite qualified buyers: To get more bids on your auction, you must invite qualified buyers. To find these, check out the websites that are the same as yours. Then, scroll, check the comments, and find buyers with high trust ratings asking questions about the platform. Lastly, invite them to your auction.
It’s a Wrap!
We hope that after reading our tutorial, you have a better understanding of how does Flippa works, the process of buying or selling a website, as well as some of the topics you should think about before using Flippa. It can be a fantastic resource for selling your website or finding an incredible online asset that can provide income for you for years.
Let us know how you get on!
Frequently Asked Questions
Can you make money with Flippa?
Yes, Flippa is a fantastic website that allows you to generate money online. There are numerous ways to profit from Flippa or simply buy and sell websites.
Does Flippa really work?
Flippa really works. You just always need to do your homework before buying a website here. Examine the screenshots to see if they support their assertions. Sites with legitimate claims, like high rank, stated, will sell for a few thousand dollars.
How much does it cost to sell on Flippa?
Flippa has a monthly fee of $15. A success fee is payable with a successful sale. This charge is based on the final sale price.