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Flippa doesn't make enough money

Discussion in 'Site Flipping' started by Stove, Sep 23, 2013.

  1. Stove

    Stove Newbie

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    Flippa doesn't make enough money, I just sold my first site on Flippa for $175 and they only got $106.25 from it! This is ridiculous Flippa should always make tons more money than the seller, it only makes sense right?

    I spent $10 on listing the site, $20 for a screenshot and $50 to have it featured on the homepage once being sold Flippa took %15 ($26.25) leaving me with $68.75 of course I also had to handle the escrow payments (not Flippas fault, but still annoying) bringing me to ~$48.75

    Before listing on flippa I had $80 and a nice site after I was left with little profit and no site, in other words I lost my time and site. What makes it worse is that Flippa only gained $100. How could I of avoided this and brought Flippa more money? I could of set a higher reserve and only been $80 down but no worries because I'm given the opportunity to relist my site at only half the cost! I bet Flippa would of loved that, especially if it sold the second time and brought them some commissions. I could of not bought the screenshot+featured options, and maybe I wouldn't of gotten any bids at all and be forced to re-list until eventually someone bids.

    Something is terribly wrong with Flippas system if the seller almost makes as much money as them. I'm afraid this is likely going to be my last time listing a site on flippa, I just feel bad that they didn't make more money off me, obviously the people who sell the sites shouldn't be making any money as Flippa deserves it all for all the hard work that they do.

    My solution for Flippa: In order for Flippa to be taken more seriously by sellers they need to charge more for people listing, probably double or triple what they are currently charging, they don't take a high enough commission, the fact they they are taking a commission is a good idea but it needs to be something like %80 or the seller might be left with too big of a profit for almost no work. Lastly they should create their own escrow system and discourage the use of third party escrow services. I think this escrow should take the remaining %20 that the seller has. With all these improvements Flippa will really start banking, and I might consider using them again.

    I think it would be cool if we all stopped using Flippa in protest until they implemented all these suggestions but I understand that Flippa is where all the buyers are and a majority of the sellers are taking advantage of the low Flippa costs in order to bank big, because most flippa sellers don't lose money, right guys?

    In case you haven't figured it out yet
    /sarcasm

    I think Flippa has become a place that is only good for high end sites that sell for a lot, the problem is most of the sites on Flippa are garbage and the ones that aren't would be smarter to sell using different methods. I've learned my lesson and will take my losses but I encourage anyone thinking of selling a lower end site on Flippa to re-think their plans as it's just not as profitable as you might think.
     
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    Last edited: Sep 23, 2013
  2. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Those fees were ridiculous. Sorry to hear about your case.

    If you search for Flippa around here, all you see is negative feedback. So you're right, you're either selling sites for U$ 10000 or you probably should not go near Flippa.

    I tracked the sale of a financial niche website. It went out for U$ 15.000 (IIRC) and a couple weeks later it was gone from Google and went 1 MLN + Alexa rank. If I had paid the 15.000 for that site, I'd spend another 15.000 to track down the scammer and take him to the nearest police station.
     
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  3. SnakePliskin

    SnakePliskin BANNED BANNED

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    Those are some outlandish fees. I dont even put up with it anymore. I would say next time sell it to someone on the forums here or anywhere else in the IM world.
     
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  4. saber210

    saber210 Supreme Member

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    I just wonder, what if you site is not sold on period of time? or the highest bidder doesn't pay? Do you need to pay those listing price and featured price again?
     
  5. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Yeah, both fees are down payments, you pay before you go live. There are no performance guarantees, that is if your site sells you pay a fee, but if it doesn't you get nothing in return.
     
  6. jrenzi

    jrenzi Junior Member

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    If I have a site that I know it won't sell for more than $500 I usually just list it on digital point, otherwise it's not worth it.
     
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  7. kvmcable

    kvmcable Supreme Member

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    Don't list your site as a new site ($9) and then purchase premium upgrades (image, premium) for a $175 website. Don't use escrow for such low priced websites. If you're truly worried about being ripped by PP, then put in your listing you reserve the right to delay transfer of the domain name for new buyers or buyers without feedback. Then you have the option to hold the domain for 30 or 60 days to make sure the PP payment doesn't receive a dispute or chargeback.It appears most of your inflated costs are do to inexperience. If your site was established you would have benefited from additional metrics being advertised in the Flippa listing pages and your FVF fee is only 5% instead of 15%. It is much cheaper to relist than to add premium services. If you're not getting bids on a good site then you haven't highlighted those features. Better luck next time and Flippa's prices are too high for what they offer but you made matters much worst for yourself - IMO.
     
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    Last edited: Sep 23, 2013
  8. Stove

    Stove Newbie

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    I agree that many of my costs are due to inexperience and an experienced seller probably would of gotten more out of the listing. I'll keep that in mind if I ever do use Flippa again. I listed my site as new because it was, and the site wasn't generating any revenue it was the product that came with the site that people were really paying for, so their were no metrics to advertise. My case was kind of unique because I wasn't really sure how much it would end up selling for and it's hard to estimate because I had no existing revenue which is why I had bought the premium upgrades to see how high it would go. It was a learning experience and I'll be sure to do things a bit different if I ever do list on Flippa again.
     
    Last edited: Sep 24, 2013
  9. tbcooke

    tbcooke Newbie

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    Hi guys,

    Yeah, this is a tricky one for us. We to try to cater for all parts of the market from our cheaper $9 listing right through to premium services.

    As kvmcable outlined, if you spend some time learning the ins-and-outs of Flippa, you can list an auction with a few upgrades and still make a healthy profit which would appeal to the frugal in all of us. ;)

    The Flippa blog is also a great resource for getting the most out of your listing, for example a post by Justin with the title, "10 Secrets to sell your website at a premium" (I can't post a link because I'm a newbie!)

    However, nothing provides more security than a reasonable reserve price to ensure you will always get the biggest cut of the sale.

    I've just started in a new role at Flippa so I'll be around to answer any questions or receive feedback.

    Tim
     
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  10. nanavlad

    nanavlad Jr. VIP Jr. VIP Premium Member

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    Profit margins are still too high
     
  11. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    How do you know what their profit margins are like?! Flippa is a private company so I doubt you have seen their accounts. I doubt they make anywhere near as much as you think.

    It's a difficult one for Flippa as the way the site operates it's really not suitable for $XX,XXX+ sales (although due to their mass exposure, they still get some listings at this level) and there is scarcity at this level - very few legitimate sites are sold in the $20k-$100k range each month whether you look on Flippa or through brokers. Therefore, a marketplace like Flippa needs smaller listings, too. The problem at that level is a huge number of scams so they need to charge a reasonable fee to keep scammers out (although, ironically, higher fees just means the scammers are the only ones who have a sustainable business model!)

    In the OPs case, using the featured listing option killed most of the profit margin. Unfortunately, for low end sites (if you've never sold before) it's the best way to get exposure unless you promote the sale elsewhere, shill bid or write great sales copy. Flippa becomes more profitable for sellers over time as you'll build up a reputation, watchers, returning buyers and feedback (much like eBay) - you just need to get the first sales and feedback complete at a lower margin until you get there.
     
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  12. Stove

    Stove Newbie

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    Actually a lot of the choices I made were based off of the suggestions in that specific blog post and other posts from Justin's site, it's the reason why I started at $1 with no reserve (I was later informed this is an outdated strategy) and bought the premium features that I did. I think that I did a lot more research on how to get the most for my site than most people do. Can you guys please upgrade your sellers guide, that really messed me up because I wasn't expecting the new bidding system and no where do you guys easily explain it before or after purchasing the listing. I had to look through old blog posts to find the one where you guys introduced it to figure out how it works and why I couldn't see how much people were bidding. Do the buyers even know about this system? I had a new buyer message me after the sale telling me that he was gonna bid but slept in, I'm not sure if he knows about how the bidding works but if he does sleeping in shouldn't have been a problem.
     
  13. SirTimberWolf

    SirTimberWolf BANNED BANNED

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    Wow, that's rough. Thanks for the warning, though-- if I ever get to the point where I can sell a site for something, I'll be sure to remember this. That's insane.
     
  14. SkyrocketSEO

    SkyrocketSEO Jr. VIP Jr. VIP Premium Member

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    Thanks for the laughs OP
     
  15. Stove

    Stove Newbie

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    Glad someone got some fun out of it. I'll be sure to post about my future failures too, it'll be fun.
     
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  16. chockfactor

    chockfactor Jr. VIP Jr. VIP Premium Member

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    Well as you seem to conclude yourself now, you spent way to much money on useless stuff for such a low end site. I would only do that on sites for at least 500+ although still not escrow. And when I say 500+ I mean even if my auction copy only consisted of the earning and traffic screenshots and a here is my site as a description, it would still fetch for 500