Flippa: Buy And Sell Web Sites

I’ve bought and sold more than a dozen websites over the past several years, having found much success through Sitepoint’s marketplace especially those times where I needed to sell a larger site, one with a value of at least several thousand dollars. Just this past weekend I began to prepare one of my current holdings for sale, so I headed over to Sitepoint where I found Flippa instead.

Pulling Out Flippa From Sitepoint

Sitepoint is still very much active but they’ve taken the website buying and selling portion of their business and spun it off to create Flippa. FYI, I like the name, as in “let’s flip a” website, because it is short and memorable. And, just like with housing, online real estate can gain in enormous value if you take something that is run down, fix it up fast and sell it.

So what’s so special about Flippa? A number of things, not least that it is a fully dedicated site to buying and selling websites only. I can’t say that Sitepoint fans are thrilled with the move, especially since Flippa was rolled out without advance warning. A thread (since locked) on the Sitepoint forum indicates that a number of users are upset with this practice, especially the “success fee” if your site is sold (more about that later).

Info Moved To Flippa

Because I was already a featured participant on Sitepoint, they automatically navigated my information to Flippa. Well, some of it. I still needed to perform the phone number verification to show buyers that I’m legitimate and I don’t see any record of my previous transactions. I’m not too concerned about this as I can easily provide those links to buyers, if asked. Still, it would be easier if people could see that I have a track record in selling websites.

Visitors to Flippa are encouraged to sign in, but you don’t have to register in order to preview listings, which are split between “buy” and “sell” tabs. Click on a listing and all sorts of information about the site is offered including site name, domain, description, revenue details, traffic and price. Also, Google’s Page Rank, Alexa rank, pages indexed, domain data, seller details, etc.

Listing Details: Steep Fees?

To list a site on Flippa, users must pony up a nominal fee of $19. That amount is low enough to encourage seller traffic, but high enough to keep the cheap, article mill sites out of the listings. Though I didn’t check every featured listing, most appeared to be for legitimate sites that have regular traffic, income and are ready for sale.

Beyond the base $19 fee is what Flippa calls its “success fee” which amounts to 5% of the transaction. This means that if you sell your site for $5000, then Flippa requires an additional payment of $250, which they say is “paid by a combination of the buyer and the seller when the auction concludes successfully.” Flippa caps that fee at $498, with a $5 minimum. So, if you’re selling a $100,000 site, your top fee will be $498, which is .05% of the transaction – in that territory movers and shakers won’t blink when it comes to paying the fee.

Is the 5% fee steep? It can be especially if you have a site that sells for let’s say $6000 and you still must pay escrow fees to safely complete the transaction. Though escrow fees are typically split between the buyer and the seller, they can add up. At $6000, that’s another $300 in fees, so when you’re selling your site, you need to price it accordingly in order to maximize your profit. That $6000 sale may only net you $5600 or so, something that must be taken account when negotiating your price and determining who pays how much in fees.

Giving Flippa A Try

So, will I give Flippa a try? Probably, for the simple reason that I want to expose my website to as much traffic as possible. I could advertise the sale elsewhere for less or come up with my own ad campaign to market the site, but I’d rather have someone else do that for me. I’ll probably upgrade my package too from the $19 basic price to have it highlighted, perhaps featured. That’ll push my costs up to about $60 without guaranteeing a sale. Flippa now automatically renews private sale listings (as opposed to an auction) for free which can help keep your product in front of the eyes of potential buyers longer.

BTW, I’m not going to name which site I’m readying for sale just yet, but I can tell you that it isn’t this website. There is a slight chance I’ll be able to find a buyer without Flippa’s assistance which means I’ll save on fees as well as avoid the hassles of responding to numerous inquiries once that site is on the market.

See Also — Launching Your Own Business? Consider These Steps First!

Launching Your Own Business? Consider These Steps First!

Job loss continues to climb, despite the best efforts of politicians to curb the problem. Some analysts expect that unemployment will top 10% by the end of the year, a rate not seen since the early 1980s.

Unlike previous downturns, this one is likely to have long legs to it, especially for mid and later career workers who are discovering that their original career path has come to a dead end. For these people, they’ll have to retrain whether that means formal schooling or learning a new business.

Birthed Out Of A Recession

Do you have a bright idea to launch a new business? With so many workers rethinking their career plans, carefully cultivating your business plans is a must.

I launched my writing business in November 2002, when the New York City area was going through a downturn. That recession was localized, a direct result of the terrorist attacks of September 2001. Recovery came the following year, but by then I was already immersed in my new venture.

Since then, I’ve tweaked and refined my business, shedding those tasks that were poor money makers (or I was disinterested in) while acquiring new skills and clients. I have to say that I’m happy with what I do, but the work isn’t easy. Good thing I like working sixty hours a week because I can’t imagine myself holding down a job I hate even if that means “only” working forty hours each week.

Different Strokes For Different Folks

People ask me how they should get started with a business, but I know that there isn’t any “one size fits all” plan. However, over the past seven years I’ve picked up enough ideas so that I can confidently share with you what works for me including the following:

Work Your Passion – Never, ever start a business that doesn’t interest you. Why would you want to run a flower shop if you’re more interested in selling model cars? Sure, one job may “pay the bills” but I believe in the long run your passion will pay you more. Besides, if you have to work hard, why not work hard at doing what you love?

Plan Carefully – “The best laid plans of mice and men often go awry.” John Steinbeck said that, I didn’t. But his statement is true. In any case, you still need to craft some sort of business plan outlining your ideas, listing your short term goals and what you need to do to help sustain your business for many years. While initial planning is an absolute necessity, tweaking your plans as you go along is essential.

Stick To A Budget – The “B” word or budget isn’t a favorite of many people, but it will help you survive for the long term. The percentage of business failures is quite high, but it could be much lower if small business operators stuck to a budget, regularly and carefully reviewing their income and expenses.

Smart Networking – Social networking is all the rage, a way to bring people together online. For internet based businesses this is a must, while brick and mortar shops would do better to concentrate on local networking first. Join the Chamber of Commerce, seek assistance from SCORE (Service Corps of Retired Executives), find a mentor, take a class, etc. After that, make sure that your online profile is known, joining LinkedIn, Facebook and Twitter to cultivate a wider network of contacts.

Ask For Help – When you’re immersed in a business, you can get overwhelmed by the many different responsibilities and problems that crop up. Your networking base can be tapped when you need advice or a friend consulted during those times when things seem like they are unraveling. There will be times when you need to give the business side of you a break, while you pursue activities that you enjoy (reading, exercise, lunch with a friend, travel, etc.). You may not be able to take a one or two week vacation just yet, but a few hours off here or there could be all of the refreshing that you need for the moment.

Managing Your Own Business

As I mentioned earlier, there is no “one size fits all” plan for running a small business, even if your business is operating the local franchise of an international food establishment. Guidelines can certainly help, but people, places and circumstances are frequently unique, requiring that you respond accordingly.

Years later I can attest that starting my business was the best step I’ve taken over the three decades that I’ve been working. I’m not likely to ever work full time for anyone ever again, but that is okay for me. I’ve tasted self employment and am perfectly happy to be my own boss — perhaps you would be too.

See Also — So, You Want To Be A Freelancer?