Flippa is the biggest marketplace for "digital real estate" in the world (having sold over 38,905 assets since 2009).
However, In 2021, is it still a good platform to buy and sell websites?
I'll be exploring this in more detail in our in-depth Flippa review.
Due Diligence
If there is one thing I would like you to take away from this post it's due diligence. This can make or break a good investment.
Firstly, let's tackle exactly what I mean by this jargon.
According to Investopedia, "Due diligence is an investigation, audit, or review performed to confirm the facts of a matter under consideration." While Flippa does its best to validate the claims made in website listings, use your own initiative to confirm.
Ultimately, the property that you are intent on purchasing needs to undergo your own (or someone elses) investigation as a viable economic investment. With digital assets like websites, the following factors need to analysed very carefully:
- Organic traffic (and what country the traffic is coming from);
- Backlink profile (do the current links look clean and legit, or is there history of a PBN);
- Content quality (depends on asset type. But look at the writing, is it native english?);
- Verified earnings (make sure all claims about traffic and revenue are verified).
These are just a handful of considerations. In any event, it's worth getting a second pair of eyes to look over your investment and notably, Flippa offer due diligence services.
Flippa Review
Summary:
Flippa has the biggest selection of websites in the world. It's easy to use as a buyer and seller. Highly recommended for a seamless experience on both ends - just make sure you do your due diligence.
Key Features:
overall
Quality & Trust
Speed
Ease of Use
Cost
Whether you're looking for established or starter websites, Amazon FBA or blogs - this is a good jumping off point and remains my go-to marketplace to check on a daily basis. I would recommend setting up alerts that correspond to your buying criteria and having these sent to your email inbox. Do not miss out! (Like I've done, many, many times before)
Buying A Website on Flippa
Pros
Cons
Conclusion:
The process couldn't be easier. If you've spotted a worthy investment, you can place a bid straightaway (once verified) and enter into the auction process. I like to message buyers and get a feel for the listing even more by asking my own questions (ask me for the list). Also, it doesn't hurt to ask about reserve price and BIN (buy-it-now) prices to try and get a better deal.
Here's Flippa's latest listings should you want to take a look.
Selling a Website on Flippa
Pros
Cons
Conclusion:
Again, the Flippa interface couldn't be easier to use and the more details you can add to the listing - the better your end price will be. Buyers love to see verified, well written listings and it's worth taking the time to enhance this.
In my latest transaction with Flippa I was selling a website from my portfolio. I won't focus on details of the website as this is a review of Flippa as a marketplace.
Here's a screenshot:
Timescale
For my transaction above, I sold the website two times through buy-it-now and once via auction ending. And both buyers (with next to no transaction history) backed out last minute. This wasted my time.
Ultimately, I listed the website in 23 June 2020 and finally completed the transaction in 16 September 2020. Meaning that from start to finish this took 85 days. Notably, this wasn't all Flippa's fault as I should've disallowed bidders with no transaction history.
Costs
As we've alluded to already I paid the following:
- Listing fee of $49
- 10% success fee of $450
- Total expenditure: $499
And this is fairly reasonable for a small website sale.
If this process looks like something you can use on your own website, try listing on Flippa today. If you need any guidance, shoot me a message.
Flippa Frequently Asked Questions (FAQ)
Can you make money on Flippa?
As a seller of digital assets like established and starter websites, apps and domains - it is possible to make good money on Flippa. As long as you bear in mind fees that the marketplace charges (listing fees of $10-$49 and success fees of 5-10%) will eat into your final profits. This is why it is important to include as much verified information in your listing to attract legitimate investors and bidders alike.
How much does it cost to sell on Flippa?
Flippa has success fees of 5% to 10% depending on what your asset sells for. Then, to create a listing, the listing fee ranges from $10 to $49. As an example, I sold a established website for $4,500 and the total cost from Flippa was $499.
Being so confident with their pricing they offer a price guarantee. Which means that their listing and success fees are cheaper than any other platform and broker.
Is Flippa.com legit?
Absolutely, Flippa is a legit marketplace and I've transacted with them over 15+ times since 2007. This is why due diligence is so important in decision making when purchasing an asset - Flippa does not hold buyer's hands and relies on individuals to make sound financial decisions.
Is buying a website a good investment?
Yes. Since I starting buying and selling websites I've been seeing return-on-investment (ROIs) of 10% - 50%. The industry is currently in its infancy and you can buy a website making $1,000 per month for $30,000 - $40,000. However, don't make the mistake of thinking that this income is 100% passive because for me it's a full-time job.
