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Don't make this mistake on flippa

Discussion in 'Site Flipping' started by wwallace1, Mar 23, 2014.

  1. wwallace1

    wwallace1 Regular Member

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    I bought a site on flippa (not telling the link or domain) that was making $1000-$1500/month for about $12k. However this was because 1 guy was buying leads from the site. Once I bought the site, the guy stopped buying leads. I'm making money from adsense but only about $30 /month, i've tried multiple CPA things but not very effective since this is a very very specific NICHE site.

    Lesson:

    If you are going to buy a site on flippa for a large amount of money, make sure it has more than one revenue stream because if that disappears then you are screwed.
     
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  2. Barrage

    Barrage Junior Member

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    Sorry for your loss man! You can't report the guy for scamming?
     
  3. Panther28

    Panther28 Elite Member

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    considering that you are actually making money with the site, still puts you ahead of most of the buyers on flippa anyway.
     
  4. wwallace1

    wwallace1 Regular Member

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    @barrage

    no it was a newbie mistake, i didn't do my due diligence

    @panther

    haha nice way of being optimistic!
     
  5. kwakuo

    kwakuo Junior Member

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    Have u ever wondered it probably was the same guy buying the leads? 'Selling' the leads to himself/friend to boost the viability of the site? Lol... Due diligence on flippa, bruh.
     
  6. wwallace1

    wwallace1 Regular Member

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    no actually i bought the site for $15k, but subtracted 3k because It took me 2 months to pay for the site, and during those 2 months the site made $3k from the guy that was buying leads from the site. But once I took over, he decided to stop buying leads...

    Anyways...

    Make sure you have more than 1 revenue stream from a site if you are going to buy it! Lesson learned!
     
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  7. oblivion19

    oblivion19 Senior Member

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    Looks like a setup. The buyer of the leads might be the same guy as the seller of the site or his accomplice. Anyways, do try to reach out to people in your niche selling them leads.
     
  8. 50cent

    50cent Regular Member

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    you should have (and so should everyone else) at minimum, run a site through tools like semrush to check if there is genuine traffic coming in with good distribution over time. Also check the site age (i have never believed in new sites making a tonne of money, they normally have scam written all over them). Look out for fake traffic of course. There is a long list of other due diligence that you can perform, but it's unlucky that you had to learn the hard way.

    Remember, if it sounds too good to be true, it normally is.
     
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  9. todordonev

    todordonev Regular Member

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    Flippa sucks big time dude. Sorry to hear that.
    I think that when you buy from flippa its only seller's ethics that is a factor.. (sadly). Its irony, but similar method is described here quite in detail, but instead of selling the customer's site, they have sold you the supplier's site and have cut you from their game:(
     
  10. wwallace1

    wwallace1 Regular Member

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    15 year old domain, 255 words in google. Like I said, this site is very very specific niche so its hard to monetise it outside of adsense. Believe me, I did the basics..
     
  11. T2tkid

    T2tkid Jr. VIP Jr. VIP Premium Member

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    ...But once I took over, he decided to stop buying leads...
    can you read this to yourself again? It is a setup! Am pretty sure it is the same guy who sold the site to you that was buying the leads!
     
  12. evilclown

    evilclown Senior Member

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    I know is not funny, but its a laughable situation. I'm sorry for your loss don't take me wrong. But you people keep failing for this kind of stupid set up. Ask your self why in the world I will sell a site that is making money? To build another one? I mean, is generating money you can build another one. Common people use common sense, is free to use.
     
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  13. shortgigs

    shortgigs Regular Member

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    Have you asked the seller to buy his leads process? Obviously it was working for him and no need for it anymore? That way you can recoup the cash flow. (Unless he uses it for other websites)
     
  14. wwallace1

    wwallace1 Regular Member

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    yeah, pretty good scam if that's the case...

    yep
     
    Last edited: Mar 23, 2014
  15. Techxan

    Techxan Elite Member

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    What leads does the site produce?
     
  16. wwallace1

    wwallace1 Regular Member

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    yea, he said that the guy (lawyer) contacted him that's why he made the form on the site and was collecting & selling them. So, I had someone find me a list of 500 leads and asked all of them if they wanted to buy them from my site and they all said no...so I tried to recoup the cash flow using a different lawyer in my niche but it didn't work out...

    btw he was selling leads at $150 a pop.. or...he was selling leads to himself at $150 a pop and scammed me? anyways..

    also looked at competitors, saw what they were doing and contacted the advertisers. But traffic is low so (300-500 daily), by my math it will take at least 10 years to make my money back lol..

    anyways i learned my lesson...

    Oh, lesson #2

    Don't buy a site that is in a super laser targeted niche, then its hard to find advertisers,,,
     
  17. wwallace1

    wwallace1 Regular Member

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    selling them to a lawyer for $150 each. tried contacting other lawyers in my niche..probably around 500? but none of them wanted to even consider to buy them. Well, actually 5 responded but they never answered back to my offer. And I didn't even say $150 per lead, I just said I was willing to offer them leads or whatever...

    Anyways...

    Lesson #3

    Doing business with lawyers is tough unless its an easier niche like traffic accidents or something...
     
  18. SEO_Alchemy

    SEO_Alchemy Senior Member

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    If the main income of the site was selling leads, then it stands to reason that you should be after selling leads, not trying to monetize it with CPA and Adsense. There must be other companies and individuals to whom these leads would be valuable? Have you tried contacting them directly via email and telephone from their sites contact details. Yes, it's cold selling, but it seems that this is the main business model of this venture.
     
  19. SEO_Alchemy

    SEO_Alchemy Senior Member

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    Ooops, you wrote your last response just as I was typing this.

    I think that this is your only game plan though. Work on cold selling to the other lawyers. Lower the price. Sell them on what you have. You can hire a professional "seller" on eLance, just work through with them how to approach each contact. It's a tough business model, but if you find just 1 or 2 clients wanting your leads, then you have a successful business in your pockets once again.
     
  20. wwallace1

    wwallace1 Regular Member

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    yea i tried emailing but didn't work out. Actually I did talk to one lawyer on the phone and he also said that my specific niche (specific medical condition) is very difficult. I did get my freelancer to find me 50 hospitals so I'm going to try that next... maybe I should call, gah I hate calling though :(