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Thoughts on selling this business on Flippa

Discussion in 'Site Flipping' started by Cush2332, Nov 15, 2014.

  1. Cush2332

    Cush2332 Registered Member

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    Just like many of you, I have noticed the quality and sales price of many sites drop drastically over the past few years. I remember a few years ago selling a site with minimal revenue for $8k, and now the same site would maybe fetch around $1k.

    Anyways, the reason for my posting is this... I have a business that me and my investors have poured about $20,000 into. It's a "product" for loan officers in the mortgage industry. We have a killer site and (2) iphone apps.

    The issue we have is this... Lack of money for marketing and time to continue working on the business. My day job has kept me busy from 8am-10pm each day. The business currently makes $0, but has the potential to become huge due to only 2 competitors in the same niche with a far inferior product.

    My question is... Would it be worth my time to list this on Flippa to recoup some/all of our investment, or are folks on Flippa only out there for existing profitable sites? Where else would one want to go to sell an established, registered, legit business?

    Thanks!
     
  2. SkyrocketSEO

    SkyrocketSEO Jr. VIP Jr. VIP Premium Member

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    A couple of things

    1. You said your biz is established- That's not the truth cause you're earning $0
    2. You think you have something great cause you invested $20K- That's called bad investment
    3. List it and try to get anything.
     
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  3. dp40oz

    dp40oz Jr. VIP Jr. VIP Premium Member

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    If its making $0 than you are dependent on finding people who are interested in selling a product to loan officers in the mortgage industry which is a fairly specific niche. I am a pretty active flippa business buyer and I couldn't see it selling for more than a few hundred dollars if that even.
     
  4. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    I doubt you will me able to recoup any of the $20k invested so far.
    I take it that you and your investors had some kind of business plan?
    How much more investment will the site require to start seeing a return?
     
  5. BuildMoreLinks

    BuildMoreLinks Jr. VIP Jr. VIP Premium Member

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    You already know the answer to your question, folks on flippa are looking for sites that make profit (with a track record) or have a good potential to make profit. So your chances are not looking that great to be honest.
     
  6. Duffers5000

    Duffers5000 Elite Member

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    Why would you bother with Flippa. If its a working product for the mortgage industry then select target companies in the mortgage industry and approach them to see if they are interested.
     
  7. mak3r

    mak3r Senior Member

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    yeah true story
    It's funny how every sellers says "my sites make nothing but POTENTIAL is GREEEEAT"
    If I buy a site I want profit, not potential

    and i really love those "true" stories like 'We just invested 20k, but now i have to go to my day job so i don't have time, buy my site"

    loool
     
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  8. ledux

    ledux Newbie

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    Keep working on it until it gets the money rolling in.
     
  9. systematic

    systematic Regular Member

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    It basically comes down to this, buyers on Flippa do not value potential. As the old saying goes, "before you sell me on the dream, let us first discuss the green." Typically buyers on Flippa value sites as a multiple of net income, usually 1x-3x yearly net. That said, Flippa is by far the largest website marketplace with over 500,000 users, and sites like this do sell on there all the time (usually as starter sites for a few hundred dollars.) So, if you're going to achieve a successful sale for a site like this, your best bet is Flippa.

    Assuming your site is not a complete pile of garbage, somebody out there will probably pay money for it. Unfortunately, the fact that you dumped $20,000 into development will have almost no influence over what the market will value this site at. If you are absolutely dead set on a fire-sale, then go no reserve with a $1 starting bid. This will help drum up interest, as the more bids you get the more exposure you will get. I would also reach out to every other competitor and anyone else you think might have an interest in this site and get them involved in the bidding. The best thing you could hope for would be a bidding war between two competitors looking to upgrade their offerings.

    From there, the market will determine the price of your site.
     
  10. Avocado Plugins

    Avocado Plugins Junior Member Premium Member

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    Here is the thing. If someone decides to buy it realistically it would be a noobie with money to invest because anyone with experience would only go for something that is making money since it is established. So the question to ask is are you trying to get rid of it while being in need of money or you are here to provide a product that gives value? It is either or and nothing in between - and if you are okay with one of the decisions then go for it but before doing anything good to ask what the main intention is. Hope that helps.
     
  11. mynameis940

    mynameis940 Power Member

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    If it makes 0$ it will probably be hard to sell it for 20K$+, but I would recommend you to look for investors. If you believe it's a kick-ass product I see no reason why would you sell a gold mine? I'm sure there are people who would be interested to invest if you explain your product.