Establishing an online business that generates a fair amount of net profit can be extremely difficult and take years for the average person to do so if their business lasts that long. But many websites sell fully functioning online firms that are already generating profit. Flippa is one of these sites, and it sells thousands of online businesses a year. In this Flippa review, we will take a closer look at the Flippa platform.
Go visit Flippa and buy and sell websites!
What Is Flippa?
Out of all of the websites that sell profitable online businesses and apps, Flippa is one of the most popular. Many people who operate businesses online no longer want to manage their business anymore, so they create a listing on Flippa to make a final sale. They can sell their business at a profit and free themselves of the day-to-day operations. Those who want to purchase a company that is already generating revenue can do so over on Flippa. By purchasing a fully operational site, they don’t have to spend months creating a business by themselves. Flippa also sells new online companies with no traffic, revenue, or profit but are ready to operate.
Anyone can use Flippa to buy or sell a website. All a buyer or seller must do is create an account and load their billing information, including their credit card, bank account, Paypal, etc. A seller on Flippa can sell as many online businesses as they want, as long as they pay the listing fee and post-sale transaction fees. If a seller sells enough sites on Flippa, they can qualify for the subscription services, which will lower their costs. As a buyer, a person is free to browse and research all of the sites offered and pick the one that matches their future business and industry. In addition to new or established companies, Flippa also sells domain names and apps.
What type of sites are sold on Flippa?
There are four types of assets sold on Flippa:
- OS and Android apps make money through ads, in-game purchases, or app sales on the marketplace.
- Domain names and registrations
- Pre-made websites and business so the buyer can purchase a site instead of creating one on their own
- A fully functioning business that has clients, revenue, profit, and organic traffic.
Flippa Review – Who is Flippa meant for?
By the way, the site operates, Flippa caters to three types of people. The first type of person is the seller who wants to sell their online business once and for all. They established a revenue-generating business and no longer want it anymore. This type of seller might sell their business one or two times on the site. The second type of person who uses Flippa is a seller who makes their income by creating businesses and then selling them at a profit. This seller creates either brand new businesses with no revenue or established businesses generating revenue for at least six months. The third type of person is the buyer who wants to purchase a pre-made business.
Price Range of Flippa
There is no set price range at which a business owner can sell their website. Some websites sell for $100, and other listings sell for $90,000 or beyond. Several factors determine the price of the website. Most of these factors are:
- Age of website
- Age of business
- Revenue of business
- Net profit
- Subscribers and our clients
- Cost of operation
- The website type
- Days left for Bidding
- Starting Price
Variety of sites sold.
There are many different types of industries on Flippa, and a buyer can find several websites in any industry they are interested in. Also, Flippa allows sites that generate revenue in different ways than just stores. A buyer can find blogs that make money through Adsense, which earn money from referrals or affiliates, or dropshipping business.
Ease of Use
The site has a very intuitive design, and its search functions and options are customizable. A buyer can search through Flippa’s listings by industry, SaaS, net profit, Starting price, website type, industry, Monetization, site age, content, or services. All transactions are secured, and there is documentation for each sale. If a buyer does not want to place a bid, they can select the Watch button and come back to the listing later.
Contact is encouraged on Flippa so buyers can have all of their questions answered. However, to contact a seller, one must have an account with Flippa and be email and name verified.
No Revenue/Net profit/Profit Verification by Flippa
While the site does allow its seller to upload their accounting files and documents, Flippa does not verify them. An interested buyer has to go over the numbers themselves. No revenue verification is the most prominent reason why there are quite a few scam sites sold on Flippa.
High broker matching service requirement
To use the broker matching service on Flippa, a service that sells your website for you, the seller must have a transaction history totaling $250,000 or more. So if a brand new seller wants to pay a fee so Flippa can sell their site for them, they cannot use it. And the service is not a one-time per-site fee but a subscription service. So sellers will be charged even if they do not have a site to sell.
Customer Issues on Flippa
Though you will not find reviews on Flippa itself, there are many different websites like trustpilot.com, which allow buyers and sellers to leave reviews on e-commerce sites. There are two major issues surrounding customers buying revenue-generating sites on Flippa – low-priced sites that turn out to be scams and high transaction fees. Unfortunately, scams are common on Flippa, and buyers find themselves out of $1,000 to $10,000 in a single transaction via a fraudulent site.
Scam sites are the biggest issue for both Flippa and its customers when purchasing a website on Flippa. Scammers sell fake online businesses through Flippa because it is quite easy. They trick the site by posting online businesses with inflated revenue numbers and or completely fake net profit numbers. Buyers who come to Flippa to purchase an online business have to spend a good amount of their time avoiding scams by double-checking the revenue of the website that they are interested in. This level of scam avoidance that their customers must do on their own hurts Flippa’s reputation and may prevent some of the high-priced listings on the site from being sold.
High Transaction Fees
Another major complaint about Flippa is high transaction fees. While it does not cost anything to become a buyer on Flippa, if a seller wants to sell their online business, they must adhere to a series of non-negotiable fees and costs that can cut into a seller’s bottom line. To avoid this, the seller must then raise their listing price, which would make it less desirable and less likely to be bought. The biggest reason for Flippa’s many fees is Escrow.com, which the site uses to conduct secure transactions.
How to avoid scams on Flippa?
Until the website decides to crack down on the number of scam sites masquerading as legitimate listings, all buyers need to learn how to identify scam sites. The most common way to identify a site or listing created to defraud a person out of their money is by comparing the net profit price to the asking price. If the net profit is less than 12 times the starting or final price, it will likely be a scam. Also, look through the QuickBooks documentation available on every listing and compare the numbers and the business’s gradual growth. If it generates too much revenue too fast, the numbers will not add up, and it is fake.
Final Verdict: Flippa Review
All in all, Flippa seems like a great place to find well-made quality online businesses to take over operations or build a business. But there is quite a lot of searching and analyzing a customer must before finding a real business. Not thoroughly vetting every listing sold on their site prevents Flippa from becoming a business-oriented, trusted site that can accommodate selling websites of all types and all prices.
If flipper was to thoroughly vet every site that it sells on its platform and take a more active role in preventing scams, it could improve its safety and reputation and attract every business. It must also establish a fee transaction tier that is fairer to those who are selling smaller websites. But even though these serious issues exist on the site, Flippa is already attracting high business levels. Many of its customers say they would buy a site off of Flippa again, even though they have to avoid scam sites. As long as the business selling website can maintain its high reputation and avoid allowing an increase of scam sites on its platform, Flippa does not have to change or improve anything at all.
Go visit Flippa and buy and sell websites!