While you may think there isn’t much difference between selling a physical company and your web-based business, they are actually rather distinct.
Both are businesses that have a product and service to offer and have staff and other processes in place. However, there are several key differences that will make a difference in the sale. To simplify matters, you can hire a broker to mediate business sales, such as Flippa.
For the neophyte, 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.
Flippa was created in 2009 and now has four locations worldwide.
They specialize in helping you find targeted buyers for your online enterprise. This can relieve a lot of stress and help you get better offers in the long term.
Flippa’s workforce consists of a diverse group of entrepreneurs and career CS representatives. They can work together to determine the best strategy for selling your online company.
According to Flippa, they have the largest number of leads browsing their marketplace compared to all the other online brokers. With 1.5 million members on their boards, there is a diverse range of buyers looking for opportunities. In the long run, more users will almost always equal 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 keep in mind is that Flippa does not have in-house brokers. They primarily provide high-quality leads and a professional platform. They do, however, collaborate with third-party brokers if that is 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 in that 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.
Flippa specializes in very specific types of businesses. Naturally, all of the businesses on their roster are web-based. They do not deal in physical stores and only operate in the digital marketplace.
One of the benefits of dealing with a mediator like Flippa is that they concentrate on specific niches. Knowing your niche is the key to discovering your target audience, as any businessman will tell you. Flippa’s understanding of this and catering to it helps to their enormous buyer 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 is 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 has 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.
The importance of this cannot be overstated. Any businessman will tell you that stress management is a top priority in their day-to-day operations. Hiring someone else to sell your company could be a crucial step in reducing anxiety.
Some security mechanisms, such as Google Analytics traffic monitoring and identity verification, are in place to reduce scams.
There are still scammers! It is imperative that you review the details thoroughly and conduct due diligence before making a purchase on Flippa because sellers may still misrepresent net profit and hide difficulties.
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 is that thin, it is possible that your company is not yet ready to be sold.
Flippa is most widely used for buying and selling websites, and it is in this capacity that the marketplace truly excels.
Flippa makes it simple to find the exact type of website you want to buy (content or e-commerce) at a variety of prices.
The front page of Flippa arranges assets for sale by category.
This makes it simple to locate websites. Editors at Flippa have identified established sites, eCommerce companies, and starter 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 would be unable to manipulate this data, making it hard to be duped in terms of traffic.
2. The main traffic channels, so you can 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 who are 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.
The notes of a seller, on the other hand, are the greatest aspect of any Flippa listing.
Flippa allows a seller to describe their website in-depth, and a professional seller makes extensive use of this part.
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 all of a website’s content, social network 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.
If you sell a site on Flippa, you can use Flippa’s free website valuation tool to determine its worth.
Sellers are not 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.
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 right away once you finish your current one. They conduct a “Due Diligence” analysis as part of the process of selling 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.
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 is a tiny fixed listing fee, but that is 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 if you are unsure about the process, it could be quite beneficial. Hiring a broker ensures that all of your merchandising and copy is professional and of the highest quality.
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.
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. If you get a number less than 25, I’d recommend skipping that site.
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 price less than 25 times the monthly profit.
Organic traffic in websites is ideal. Social traffic in websites is a good alternative, but organic traffic in 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, using Google Analytics and social traffic, social traffic can be verified.
While there are a few significant concerns that exist, they are 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, if they find themselves stuck in their present method of conducting business online or just aren’t quick enough to evolve quickly, 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.
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Flippa falls short is in scalability.
You can’t realistically expect to be able to buy and sell an infinite amount of businesses every day, you are limited by time.
But what if you leverage it?
With this digital real estate program, you can have the phone ringing at every minute of the day and never have to pick up once!
Sound too good to be true? Of course it does! But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Remember flipping websites talking about daily commission checks?
This one actually allows you to collect that without being on the phone all day. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than Flippa in my opinion. This group is much more active.
Unlike Flippa, where you’re the closer…these websites turn into your closer. A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Flippa, more people have been able to walk away from their 9-5 job as well.
Now, I know you probably have tons of questions… So, check this out to learn more.