You might not think there is much difference between selling a physical business and your online business, but they are pretty different.
Both of these companies have employees and other operational procedures, as well as a product and services to provide. However, there are a few important differences that will impact the sale. You can use a broker, like Flippa, to mediate business sales to simplify things for you.
For newbies, Flippa is an online marketplace for buying and selling domains, websites, and blogs.
If you are inexperienced with the process of selling online businesses, then you may benefit from enlisting the services of a broker such as Flippa.
This Flippa review will teach you everything you need to know about Flippa and how to sign up for it to help you decide whether it is a good fit for your online enterprise.
Alright, so Flippa doesn’t exactly fit into a nice category.
At the end of the day, selling your own online company is a… unique way to think about making money.
It’s certainly possible to make money with off-the-wall businesses like this, but unless you’re interested in taking years out of your life to experiment on an unproven business model, I would look elsewhere.
My #1 personal recommendation if we’re talking about starting a fully-online business has got to be the Lead Generation & Ad Agency business models.
There are a handful of programs that teach you the ropes, but my #1 choice that combines both of those business models into one is the Digital Landlords program
But, if you’re hard-pressed to jump head-first into an off-the-wall business model, let’s continue on to my full breakdown of Flippa.
What Is Flippa?
Since its founding in 2009, Flippa has expanded to four locations across the globe.
They specialize in assisting you in locating niche markets for your online business. This reduces stress and improves long-term offers.
Entrepreneurs and career CS workers make up Flippa’s workforce. They can collaborate to choose the most effective approach for selling your online business.
Unlike all the other online brokers, Flippa claims to have the most leads browsing their marketplace. Their boards have 1.5 million users; therefore, many different types of buyers are looking for opportunities. Over time, more users mean more offerings.
The first decision you must make when deciding to sell your company is whether to do the selling on Flippa yourself.
One thing to remember is that Flippa doesn’t have in-house brokers. They primarily provide high-quality leads and a professional platform. They do, however, collaborate with third-party brokers if that’s the route you wish to go.
While Flippa provides brokers to assist you with your listing, you can also handle it yourself if you opt to. Many other brokers would like to handle every detail of your selling. Flippa is a good alternative for customers who want more control over their transactions because of this.
Flippa is also unusual because it offers to finance buyers. They have teamed up with Guidant Financial to provide financing options to everyone who purchases through their marketplace. This creates a much wider pool of leads that could become potential buyers.
Does Flippa Only Focus On The Digital Marketing Business?
Flippa focuses on a unique type of business. So naturally, every company on its roster operates online. However, they only conduct business online and don’t have physical locations.
Dealing with a mediator like Flippa has numerous advantages, one of which is that they specialize in specific markets. Any businessman will tell you that finding your target audience depends on knowing your niche. Flippa recognizes this and fulfills it contributes to their huge customer base.
Flippa has earned several sales in the Health and Beauty market throughout the years. Flippa has sold a wide range of health and beauty businesses, including eCommerce, apps, and websites. This comes as no surprise, given that it’s one of the fastest-growing niches in the online marketplace.
Education is another prominent niche in which Flippa has earned numerous sales. The education industry performs well in the digital economy; as a result, many of the businesses acquired and sold on Flippa are related to education.
For the most part, if your enterprise does all of its transactions online, Flippa likely sold one about a few years ago.
They have a lot of experience to draw from, having produced over 250,000 sales worldwide. If you don’t have the same kind of connections that they do, this might be something to think about.
What Are The Pros And Cons Of Using Flippa?
What Are The Pros Of Flippa?
You Can Buy And Sell At Any Price!
You Lessen The Stress!
This is very crucial. Any entrepreneur would tell you that stress management is a top priority in their daily operations. One of the most important steps in lowering anxiety would be to hire someone else to sell your company.
Very Easy To Use!
Security Measures Are In Place!
Some security mechanisms, such as Google Analytics traffic monitoring and identity verification, are in place to reduce scams.
What Are The Cons Of Flippa?
Due Diligence Is Still Needed As There Are Still Some Scam Concerns For Buyers.
Scammers are still around. Before purchasing Flippa, you must carefully analyze the details and perform due diligence because sellers may still exaggerate net profit and hide issues.
Less Profit For The Seller, But It’s Ok!
Let’s face it: if you use a third party, you’re going to lose some money. If your company’s profit margin is already small, you might not want to do that.
However, if it’s that thin, it is possible that your company is not yet ready to be sold.
How Does Flippa Work For Buyers And Sellers?
Flippa is most widely used for buying and selling websites, and it is in this capacity that the marketplace truly excels.
How Flippa Helps Buyers
Flippa makes it easy to find the exact content or e-commerce website you want to buy at different prices.
The assets for sale are organized by category on Flippa’s home page.
This makes finding websites easy. Flippa editors have created a list of established, legit sites, eCommerce businesses, and new websites.
When you click on a listing, you can learn more about the website in question.
Flippa allows sellers to provide a detailed overview of their website, including:
1. Google Analytics monthly traffic, including historical statistics. A seller could not manipulate this data, making it hard to be duped in traffic.
2. The main traffic channels are to see if a website gets more organic or social traffic.
3. Gross income and profit. Websites can explain whether this is due to Adsense, affiliate revenue, or other sources.
4. A traffic report from SEMRush that contains backlink information.
Listings also include the current price, views, the number of buyers viewing the listing, and bid history.
Listings may also include a reserve price or a buy it now prices.
All of this information makes it simple to acquire a sense of a website you’re contemplating.
On the other hand, the notes of a seller are the greatest aspect of any Flippa listing.
Flippa allows a seller to describe their website in-depth, and a professional seller extensively uses this part.
Here’s How To Spot A Good Seller
A good seller would explain every aspect of their website, including a traffic and revenue breakdown, the reason for selling, the website history, website KPIs, growth opportunities, and marketing information.
Furthermore, good sellers clarify everything that is included in a sale, as well as the costs you are facing.
Typically, this entails acquiring a website’s content and social media handles, WordPress assets, and email addresses.
Good sellers frequently provide post-sale assistance, such as assisting with the transfer of the property and providing advice. Sellers can also sign a non-compete agreement.
Finally, Flippa makes it simple for a buyer to research a website, contact sellers, and launch a new online enterprise through acquisition.
How Flippa Helps Sellers
If you sell websites on Flippa, you can use Flippa’s free website valuation tool to determine their worth.
Sellers aren’t recommended to rely just on this tool to determine the worth of their website, but it’s wonderful that Flippa starts the ball rolling for sellers.
Now, one thing sellers need to consider is the selling costs for utilizing Flippa.
You Pay 2 Types Of Fees As A Seller:
- a listing fee
- selling a success fee if you complete a sale.
Valuation Process At Flippa
Flippa’s valuation process is tough. The good news is that getting started with it is really simple. The valuation tool on their website is operated by a bot and is extremely efficient.
If you want to work with one of Flippa’s brokers, there will be more of a valuation process. The brokers will examine all of your company’s assets, incoming invoices, and other considerations.
They will use this information to decide whether or not your company is ready to sell and how much it is worth.
They also have choices if you want to buy another entity immediately after you finish your current one. They conduct a “Due Diligence” analysis as part of the selling process on Flippa. They use this to examine the seller, traffic, finances, sales, and marketing. This thorough examination protects both buyer and seller and ensures a smooth transaction all around.
Sales readiness is a crucial part of the appraisal process that is frequently overlooked. It can be disheartening to conduct a valuation and discover that your company isn’t worth as much as you imagined. However, now that you have that information, you can make an informed decision.
Does Flippa Have Fees For Selling A Business?
Flippa is less expensive than the others, with more hands-on brokerages and marketplaces.
Flippa takes a 10% fee if your enterprise sells for less than $50,000. This is a relatively minor sum for smaller businesses.
Flippa’s rate decreases as your company’s selling price increases. They will take 7.5% if your company sells for between $50,000 and $100,000. As the amount increases, so will the dollar amount of their rate.
If your company sells for more than $100,000, Flippa just takes 5%. The most crucial aspect of these charges is that they are only charged if your company is sold. There’s a small fixed listing fee, but that’s all.
If you utilize one of Flippa’s partner brokers, they will charge you 15% of the sale price of your company. This may appear to be a lot, but it could be quite beneficial if you are unsure about the process. Hiring a broker ensures that all of your merchandising and copy is professional and of the highest quality.
Does Flippa Have A Listing Fee?
Flippa does charge minimal listing fees in addition to the above-mentioned percentages. These fees are as follows:
There is a $15 listing charge for starter websites on Flippa.
If you’re selling a domain, you’ll have to pay a $10 listing charge.
You must pay a $15 listing charge when selling an app.
A $49 listing charge is charged to established sites.
How To Avoid Being Scammed In Flippa
If It Seems Too Good To Be True, Be Wary!
The number one guideline that will spare you a lot of trouble is that if something seems too good to be true, it probably isn’t true.
Divide the BIN price by the typical monthly income to arrive at this conclusion quickly. I’d recommend skipping that site if you get a number less than 25.
As an example, consider the following:
This one is very obvious, yet it conveys my point. $11,450 is the Buy It Now price. The monthly profit is $5,590. If that doesn’t scream scam to you, I don’t know what would.
I’d be careful of anything with a Buy It Now prices less than 25 times the monthly profit.
Hey Buyer! Run Away From Unverifiable Traffic!
Organic traffic on websites is ideal. Social traffic on websites is a good alternative, but organic traffic on websites is the preferred method. These two are the best because they can track the source of the traffic of websites.
I can prove organic and paid traffic with Google Analytics and Ahrefs. Then, social traffic can be verified using Google Analytics and social traffic.
Is Flippa The Best Option For You?
While a few significant concerns exist, they’re still the best option in town, and it’s well deserved.
They’ve done a great job of attracting both buyers and sellers and offer a better option to eBay.
Their challenges notwithstanding, they are not too far off base and may continue to evolve.
There is not enough value lacking that a competitor could provide that their team couldn’t easily adapt.
However, suppose they find themselves stuck in their present method of conducting business online or aren’t quick enough to evolve quickly. In that case, they may end up finding themselves in the same situation they left eBay in, with someone else assaulting them much in the manner they carved out their niche.
Are There Alternatives To Flippa?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
Is Flippa A Scam?
Time for the $1,000,000 question: is Flippa actually a scam?
I wouldn’t technically call it a scam, though others might.
It’s technically possible to make money with this program, so in that sense, it isn’t a scam.
What I’m saying is: after buying, someone will in fact send you a login to a website where you can actually view their material. No one is riding off into the sunset with your money, leaving you empty-handed… technically speaking.
But the second, more important question is: is Flippa actually worth the investment?
My honest answer is that for most people out there, probably not.
There are countless other business models that are proven & easily scalable, so why risk it for… not an incredibly huge payoff?
I’d rather have a program with thousands of successful students & plenty of room for others to join.
If you’ve followed my blog for long, you know I recommend a few different programs depending on your skills & goals.
My current top choice is becoming a Digital Landlord, because you have a proven, systematic path to 6-figures, and you can do it from anywhere you want.
I’ve got friends in there that are posting deals from the middle of the woods in a camper van with their pet pig… which is kinda cool.
What Is My Top Recommendation For Making Money Online In 2022?
Alright, time for me to get real with my lovely readers for a moment:
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
THAT BEING SAID: I would at least recommend you implement something that is tried and true, because I’ve seen TOO MANY people (including friends and family) get burned by stuff like Flippa.
They come out of left field with some random idea, make it seem attractive, and then make themselves a quick buck by luring in unsuspecting people.
I’m not saying Flippa itself is a piece of trash, I’m just saying you need to be very, very careful.
This is a big reason why I only recommend proven, tried and true business models, like Lead Generation & Ad Agencies.
There are a bunch of programs out there that teach you those skills, but my top choice is the Digital Landlords program.
Why? It has proven leaders with their own 7-figure businesses implementing exactly what they teach you.
I’ve also got over a dozen personal friends in there, so I feel comfortable telling you it works.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, their program works.
1)Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring (for the most part).
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
2)Big Margins: With most businesses, you’re often going to have really slim margins. That means you need to hit a serious scale to make serious money.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on “auto-pilot.”
3)It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with Flippa, you would need to work hard and exert effort. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
4)You’re Helping REAL People: My biggest gripe with Flippa is that you’re basically only helping yourself.
But when you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other off-the-wall business models like Flippa and maybe hit it big one day.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.