There’s no denying the lucrative returns that a successful eCommerce site brings, especially if it generates passive income or you manage to ‘flip it’ and sell it for a profit later.
Companies like Flippa help entrepreneurs break into flipping websites by offering the resources needed to transform a site into an attractive online destination for customers. But is this the best option for those interested in breaking into this niche?
In this review, we’ll tell you everything you need to know about Flippa. This includes how the site operates, who its target audience may be, what sites are for sale, and perhaps most importantly: whether or not it’s a legitimate site.
What Is Flippa?
The easiest way to think of Flippa is as a website marketplace. Site owners place their sites on Flippa’s listings with various descriptors before the bidding starts.
The amount that users will bid on a site depends on a variety of factors:
- The estimated monthly revenue of the site;
- The type of site on sale (more on this further down);
- How the site is monetized;
- The age of the site;
- How many owners there are;
- What platform the site is on.
There is also a detailed profile of the seller available, including verification based upon email address, phone number, and government ID. If you create an account, you can also view specific data from the site you may bid on.
This data includes traffic recordings for the past month, important financial information, and various notes from the seller. There aren’t any blind spots associated with Flippa; the company makes sure you know what you’re bidding on, which is a huge benefit in this industry.
Should I Use Flippa?
You should use Flippa if you’re looking for a secure marketplace to purchase or sell websites. There is an inevitable risk that comes with exchanging on a digital market. However, Flippa is one of the largest site marketplaces available and operates on a global scale. It also offers full information about site sellers with identity verification to minimize the risk of fraud.
What Sites Can I Find on Flippa?
There are five distinct categories that Flippa separates their websites into. This allows both buyers and sellers to seek out precisely what they are looking for.
These five categories include:
- eCommerce: The purchase and sale of various products, usually through platforms such as Shopify, Dropship, Amazon FBA. General digital products and inventory holding sales also fall under eCommerce;
- Content: Sites under this heading include blogs, directories, review pages, and forums. They relate to pages that generate their revenue through hosted ads. They generate traffic via the niche nature of their content;
- Marketplace: As the name suggests, this category relates to pages that sell no specific description products. Not to be confused with eCommerce. Marketplace sites often feature a wide range of products, often for lower prices than standard retailers;
- SaaS: This abbreviation stands for Software as a Service. These sites will often sell subscription-based software to solve a client’s problem. This may relate to business-growth or tax auditing, among countless other variations;
- Services: These sites serve a specific purpose. Their revenue is generated through this purpose. A site that offered SEO optimization or a web design company may fall under this category. Its monetization derives from how many customers utilize its service.
How Does Flippa Organize Its Websites?
There is a total of six ‘collections’ of sites featured on Flippa. These areas are designed to help buyers decide on where to place their money. We’ve compiled a summary of these collections below:
- Built for beginners: Fairly self-explanatory. This collection is the quintessential hub for anyone new to the buying and selling of sites. It features the most user-friendly sites that require minimal intervention for a profit;
- Buy Your Next Job: Sites listed here propose the likelihood of quitting the day job to run sites full-time. It’s a lofty claim, which is why the sites featured here are thoroughly vetted. They often feature sites with greater stability;
- Recession-Proof Categories: This is where the ever-popular sites and niches are listed; the ones that are unaffected by the rises and falls associated with digital trends. Investment in these sites may not yield enormous rewards, but they will be consistent;
- The Sweet Spot: Striking a balance between high revenue and reliable returns. The Sweet Spot collection sites are for those who are not risk-averse but are not avid gamblers, either;
- Apps for the Masses: As the name depicts, this collection specifically focuses on apps instead of sites. It classifies apps that will appeal to a wide audience, regardless of age or gender. They’re ideal selections for ad monetization as they should receive frequent hits;
- eCommerce Heavy Hitters: High profits that require substantial involvement from the site owner is what this collection promises. They make up the highest prices by far, but they also pull in the biggest net profits.
Flippa excels in providing both new and returning customers with high-quality websites. The interface is clean and easy to use. Regardless of whether you’re a beginner or veteran, you won’t find it difficult to locate exactly what site you are looking for.
Does Flippa Sell Apps?
It does. If apps are more your way than websites, Flippa can accommodate you, too. There aren’t as many categories associated with apps as there are sites. Instead, the apps Flippa sells are separated into two categories only: iOS or Android.
These apps come in all shapes and forms. Some are educational, some are informative, some are cute games with cartoon characters, and others are all-out shooters. In terms of genre, there isn’t anything that Flippa is missing.
As with the site listings, apps are provided with a title, thumbnail image, and price. Once you sign up, you can access further details, including how often the app has been installed and how it is monetized. From there, you can make an informed decision on whether it’s an app you want to invest in.
Who is Flippa For?
Anyone, who is looking to buy or sell a website can use the Flippa marketplace to trade. As a Flippa user, you can view the full details of any listings it offers. You can also apply for your current site’s valuation, which reduces the risk of undervaluing your site.
The best part? The valuation is entirely free.
The way Flippa completes its valuations is relatively simple. It compares the data supplied by your site to thousands of similar sites it has previously sold and supplies an approximate sale price.
The categories include:
- Business model;
Flippa will also consider the spiking popularity of certain categories at any one time. For instance, if eCommerce pages have seen a significant boom in sales recently, then Flippa will evaluate your site accordingly.
How Much Does Flippa Cost?
Flippa makes use of fixed percentage success fees, which are deduced based on the sale total:
- Up to $50k Sale: 10% Success Fee;
- $50k+ to $100k Sale: 7.5% Success Fee;
- $100k+ Sale: 5% Success Fee.
Listing fees vary depending on the type of site you’re trying to sell.
- Starter/Template Websites: $15;
- Domains: $10;
- iOS and Android Apps: $15;
- Established Websites: $49.
You can also pay for additional packages to ‘boost’ listings.
Is Flippa Worth It?
With an excess of thirty thousand new buyers joining every month, it’s safe to say Flippa is a legitimate site and worth using.
However, this is a marketplace, and you have to be careful as a consumer. Flippa makes sure to protect users with verification services. However, there is not the same security that comes with purchasing a domain from an agency you can establish a relationship with.
- A wide array of sites available for purchase in distinct categories with many different price models;
- Hugely popular, with tens of thousands buying sites every month;
- Identity verification and transparent information regarding the potential sale site from the moment you sign up.
- The sheer variety of listings available can lend itself to some dire offerings. Some vetting is required to find a good site.
Flippa succeeds in providing its audience with a diverse range of sites to buy and sell. Though the number of listings may be overwhelming, you are taken care of as a beginner through your own distinct collection.