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Flippa Introduced Classifieds Section

Discussion in 'Site Flipping' started by John P, Jun 15, 2013.

  1. John P

    John P Jr. VIP Jr. VIP

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    Just saw that Flippa made a classifieds section on their site.You can sell articles,seo services and everything you can think of :)

    https://flippa.com/classifieds
     
  2. steelballs

    steelballs BANNED BANNED

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    Will this have all the problems of the rest of the site?
     
  3. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    Step backwards for Flippa, they must be having financial issues. The whole logic behind their move from SitePoint to Flippa in the first place was to focus their brand on selling sites... to do a u-turn at this stage isn't a good sign.

    Flippa's traffic has been on the decrease for a few years now - clear sign the turnkey market cannot sustain itself on a relatively expensive marketplace. Established site sales have and always will remain strong - but more and more deals are now down privately or through brokers as Flippa's auction platform isn't overly suitable to higher end sales/negotiations.
     
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  4. abhi007

    abhi007 Jr. VIP Jr. VIP

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    does that mean the future for turnkey websites will come into jeopardy soon?
     
  5. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    I don't think so, no. There will always be new people entering the market wanting to buy cheap sites. Those sellers who are good entrepreneurs will find ways to adapt, others will die, just like any other dynamic market. If Flippa dies - people will still be buying and selling sites - Flippa (contrary to popular belief) is not reflective of the industry as a whole which is constantly changing.

    One issue for turnkey providers is the sites that are sold tend to be poor quality and there's a low barrier to entry - so in the long run it's hard to stay in business as you'll rarely get returning clients. It's the same issue for anyone selling anything in the MMO space - regardless of how good your product/service is, the majority of buyers out there will find ways to mess it up and complain.

    Flippa's issue is they marketed to the masses - which invariably leads to lots of stupid buyers and lots of scammy sellers - which is not particularly sustainable. They also tried to counter the quality issue by raising prices - which doesn't really work. Scammers are more than happy to pay upfront to get their sites infront of buyers as the cost of ripping someone off is significantly lower than providing a top quality site with excellent after-sales support.
     
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  6. kvmcable

    kvmcable Supreme Member

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    Flippa's days are numbered unless they get some new staff. They are currently in the death spiral as we call it in retail Race to the bottom is another term. They are close to the bottom now. What I'm referring to is their inventory are websites owned by sellers. Currently almost 40% of their inventory is being sold for no profit or a loss. This business model can't last. No store survives selling half their inventory for little or no profit.

    Now they introduced this classified ads site without any rules. I already see guys selling vouchers that legally can't be resold. I see guys selling websites built on nulled fiver scripts. I see guys selling websites using stolen templates. On and on with the scams. Flippa will find they are shooting themselves in the foot with that classified ads idea. Sellers that aren't entrepreneurs are continually devaluing even their listings now offering websites built for $30.

    Retail and online sales have common factors for valuation; it's called perception. Good Flippa sellers know how to give their property perceived value. Flippa has few tools available for sellers to do this. eBay is much better equipped when they introduced the "sale" module and store module. This is the direction Flippa should have taken. They should have invested in a store model and introduced a sale module. This follows known successful retail models.

    More than 80% of purchases made by consumers today are on sale items. They shop for sale items. Of course 90% of the time it's not really on sale but that is where perception comes into play. Stores all mark up items to mark them down. They exaggerate the benefits of the product, the size of the burger, and so on. This is retail marketing 101.

    Introducing a sale module would allow website sellers to list longer duration auctions, exaggerate the benefits, exaggerate the value and put the item on sale to a closer real value and entice buyers into impulse purchases. The sale module is an invaluable tool in real stores and online stores. While Flippa allows sellers to drop and raise BIN prices, they have nothing that indicates a sale. A strike-through of the original BIN price with a sale logo next to the new lower BIN would increase impulse purchases.

    The store module would allow sellers to increase Flippa's inventory, online exposure and allowed larger sellers to advertise off-site all their inventory on Flippa. They would build blogs or more websites to advertise their Flippa store and so on. It's been very successful for eBay, yet Flippa hasn't implemented it. Flippa could be leveraging off their full time sellers for marketing if they had Flippa stores. All sorts of benefits to be gained for Flippa and sellers with Flippa stores.

    This is the type of listing Flippa should be giving for the $9 discount listing. Limit the exposure of $9 listings to Flippa store searches and if you want on the other pages you need to pop up to $29 listings for "auction" listings.

    The benefits would be two-fold:

    The guys listing $29 listings wouldn't be surrounded with $70 BIN listings, $10 over reserve listings drawing real buyers away from their listings. I've heard more and more sellers bitching they can't list anymore on Flippa for $29 because the flood of $9 listings are too distracting to their buyers. Placing a good website on Flippa today, is akin to taking a real Rolex watch to the local flea market. Simply the wrong place to advertise a real jewel. Too many fakes competing with real merchandise. Flippa could easily correct this by removing $9 listings from all the main pages. Let the jewels stand out for real buyers and let frugal buyers dig for those $9 flea market (knockoff) listings.

    The second benefit would be $9 listings would soon become $29 listings when they don't get the premium exposure the $29 listings get. Currently Flippa is giving $9 listings the same exposure a $29 listing gets but just reducing a couple metrics. That's a HUGE mistake. None of those $9 listings should be on the main pages burying and distracting buyers of the $29 listings.

    Flippa should have mimicked their marketplace after eBay. eBay allows discount listings for store listings. Longer durations and a permanent link per storefront. However those store listings don't compete with higher priced listings. Flippa's $9 listings should be store type listings and never on the main pages of the website (Featured, New Listings, Ending Soon, etc) competing with $29 listings.

    The classified site with $5 listings is sadly showing the ignorance of Flippa's marketing staff. Their minimum listing fee should be $500 for the exposure they're providing. They should be taking steps to clean up their public image, not tarnish it further. Allowing complete scammers to advertise for $5 isn't going to build their brand in the direction they need to go.

    Of course this is the kind of marketing you get from a bunch of College grads without experience. While I believe in getting a good education, there is no substitute for experience. They need a few 50 year olds that have been in this game longer than these kids have been out of diapers to steer them in the right direction. They're looking like a fish that flopped out of the fish bowl gasping for air and not finding any. Just one snafu after another.
     
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    Last edited: Jun 16, 2013