Flippa is the biggest marketplace for “digital real estate” in the world, having sold tens of thousands of assets since 2009.
Is it still a good platform to buy and sell websites? I’ll be exploring this in more detail in this in-depth Flippa review, based on my own experience buying and selling on the platform.
Due diligence
If there is one thing I’d like you to take away from this post, it’s due diligence. This can make or break a good investment.
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 them.
Ultimately, the property you’re intent on purchasing needs to undergo your own (or someone else’s) investigation as a viable economic investment. With digital assets like websites, the following factors need analysing very carefully:
- Organic traffic (and what country the traffic is coming from)
- Backlink profile (do the current links look clean and legitimate, 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 – Flippa also offer their own 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, and I’d recommend it for a seamless experience on both ends – just make sure you do your due diligence.
Key features
- 10% success fee on completed sales
- Mainstream marketplace with high traffic – access to more buyers and sellers
- Easy-to-use filters for your buying criteria
- Alerts for new websites matching your criteria
Whether you’re looking for established or starter websites, Amazon FBA businesses or blogs, Flippa is a good jumping-off point and remains my go-to marketplace to check regularly. I’d recommend setting up alerts that correspond to your buying criteria and having these sent to your inbox – good listings move fast.
Buying a website on Flippa
Pros
- Easy-to-use interface
- Criteria filters make it easy to find good investments
- Traffic and revenue are typically verified and supported with attachments
- Fast response from Flippa Support (under 24 hours, in my experience)
Cons
- Process can be slow sometimes
- Due diligence required even on Editor’s Choice listings
- Because the marketplace is so big, prices can get inflated fast in bidding wars
Conclusion
The process couldn’t be easier. If you’ve spotted a worthy investment, you can place a bid straightaway (once verified) and enter the auction process. I like to message sellers and get a feel for the listing by asking my own questions. It doesn’t hurt to ask about reserve price and buy-it-now prices to try and get a better deal.
Selling a website on Flippa
Pros
- Easy to list – can be done within 15-20 minutes if you have your attachments ready
- Wide buyer pool, so genuinely good listings get real competition
- Very good support from Flippa (again, under 24 hours in my experience)
Cons
- Service add-ons like premium boosts, NDAs and other features can end up making a sale quite expensive – though for high-value assets, these are often worth it
- Completion can be drawn out sometimes, occasionally over a month, if the buyer delays matters
- Buyers can win the auction but back out last minute, wasting the seller’s time and forcing a relisting of the asset
A real example: my own transaction
In one of my own sales, I listed a website on 23 June 2020 and finally completed the transaction on 16 September 2020 – 85 days from start to finish. Two buyers with next to no transaction history backed out last minute along the way, which wasted my time. That wasn’t really Flippa’s fault – I should have disallowed bidders with no transaction history from the outset.
On costs, at the time I paid a $49 listing fee plus a 10% success fee of $450, for total expenditure of $499 – reasonable for a small website sale. Flippa’s current fee structure (below) is a little different now, but the shape of the deal – a modest listing fee plus a success fee on completion – is the same.
If this process looks like something you can use on your own website, listing on Flippa is worth trying. If you need any guidance, get in touch.
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’s possible to make good money on Flippa. Bear in mind the fees the marketplace charges will eat into your final profits, which is why it’s important to include as much verified information in your listing as possible, to attract legitimate investors and bidders.
How much does it cost to sell on Flippa?
Flippa currently charges a flat 10% success fee on completed sales. Listing fees depend on your asset’s price tier: from $29 for a basic listing under $10k, up to $699 for a premium listing on higher-value assets. Check Flippa’s current pricing page before listing, as fee structures do change over time.
Is Flippa.com legit?
Yes – Flippa is a legitimate marketplace and I’ve transacted with them many times over the years. This is exactly why due diligence is so important when purchasing an asset: Flippa doesn’t hold buyers’ hands, and relies on individuals to make sound financial decisions.
Is buying a website a good investment?
Yes, in my experience buying and selling websites has produced returns on investment in the 10–50% range. The industry is still relatively immature, and you can buy a website making £1,000 a month for a fraction of what an equivalent physical business would cost. Don’t make the mistake of thinking this income is 100% passive, though – running acquired websites well is a genuine, ongoing job.
